Independent auditor’s report to the members of Bank of Georgia Group PLC continued Performance materiality The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality. On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgment was that performance materiality was 50% (2017: 50%) of our planning materiality, namely GEL 10 million (2017: GEL 12.5 million). Audit work at component locations for the purpose of obtaining audit coverage over significant financial statement accounts is undertaken based on a percentage of total performance materiality. The performance materiality set for each component is based on the relative scale and risk of the component to the Group as a whole and our assessment of the risk of misstatement at that component. In the current year, the performance materiality allocated to components was set at the level of the Group performance materiality, namely GEL 10 million. Reporting threshold An amount below which identified misstatements are considered as being clearly trivial. We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of GEL 1 million (2017: GEL 1.25 million), which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on qualitative grounds. We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of other relevant qualitative considerations in forming our opinion. Other information The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon, including the following sections of the Annual Report: •Strategic Report, including Overview, Strategy and Performance sections, set out on pages 1 to 101. •Governance section, including Directors’ Governance Overview, Shareholder and Stakeholder Engagement, Board of Directors, Executive Management, Nomination Committee Report, Audit Committee Report, Risk Committee Report, Directors’ Remuneration Report, Statement of Directors’ Responsibilities and Directors’ Report, set out on pages 102 to 153. •Additional information, including Abbreviations, References, Glossary and Shareholder information, set out on pages 284 to 288. The Directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of the other information, we are required to report that fact. We have nothing to report in this regard. 162 Annual Report 2018Bank of Georgia Group PLC