Answer: It should always be determined through quantitative evaluations and It should be determined by how the magnitude of the item would be viewed by a reasonable person.
Explanation: Materiality highlights both the nature(or quality) and the magnitude by which any information may affect a company's financial statements. So it does not consider quality only because the there could be quantitative implications that need to be stated. If on the other hand it is always determines by how it affects past financial statements, then it would exclude the principle of how Materiality also could affect future financial statements. Hence the nature and magnitude by which a rational person would deem such information material to the financial statements presented is the concept.
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