Do you agree with the management's opm1on on non-disclosure of Capitalization policy for repair or upgrades? Support your conclusion? (1 Mark) Under…

(a) Under Ind AS 1 ‘Presentation of Financial Statements', accounting policies are required to be disclosed if they are material and materiality is assessed not only by quantitative thresholds but also by qualitative considerations. As per the standard, accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed. In case management feel that capitalisation of repairs and upgrades are immaterial, their disclosure is not mandatory and would not be considered as non-compliance or misleading the stakeholders. Circumstances in which accounting policy information is said to be material to the financial statements of an entity Accounting policy information is material if, when considered together with other information included in an entity's financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. Accounting policy information is expected to be material if users of an entity's financial statements would need it to understand other material information in the financial statements. For example, an entity is likely to consider accounting policy information material to its financial statements if that information relates to material transactions, other events or conditions and: (a) the entity changed its accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements; (b) the entity chose the accounting policy from one or more options permitted by Ind AS; (c) the accounting policy was developed in accordance with Ind AS 8 in the absence of an Ind AS that specifically applies; (d) the accounting policy relates to an area for which an entity is required to make significant judgements or assumptions in applying an accounting policy, and the entity discloses those judgements or assumptions in accordance with paragraphs 122 and 125; or (e) the accounting required for them is complex and users of the entity's financial statements would otherwise not understand those material transactions, other events or conditions-such a situation could arise if an entity applies more than one Ind AS to a class of material transactions.