Indicate an Appropriate Base Amount That Could Be Used in Determining

question 5

Essay

Indicate an appropriate base amount that could be used in determining materiality for the following items:
1.accounts receivable
2.inventory
3.accounts payable
4.wages expense
5.cash inflow from the sales of property, plant and equipment
6.cash outflow from borrowing redemption
7.asset revaluation reserve
8.cash
9.interest revenue
10. cash outflow from employee expenses

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Definitions:

Associates Profit

The share of earnings derived from an associate company in which the parent company has significant influence but not total control.

Comprehensive Income

Represents the total change in equity for a period that is derived from both operating and non-operating activities, excluding any owner changes.

AASB 101

The Australian Accounting Standard that outlines the presentation requirements for financial statements, ensuring their comparability both with the entity's financial statements of previous periods and with the financial statements of other entities.