What Guidelines Are Available in AASB 1031 'Materiality' to Assist

question 24

Multiple Choice

What guidelines are available in AASB 1031 'Materiality' to assist in determining the materiality of an item?

• A) If the amount is equal or greater than 10% of the appropriate base amount, the item is material.
• B) If the amount is equal or greater than 10% of the appropriate base amount, the item is immaterial.
• C) If the amount is equal or less than 5% of the appropriate base amount, the item is material
• D) If the amount is equal or greater than 10% of the appropriate base amount, the item is material; if the amount is equal or less than 5% of the appropriate base amount, the item is immaterial.

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Definitions:

Peptic Ulcers

sores that develop on the lining of the stomach, lower esophagus, or small intestine, usually due to infection or chronic use of anti-inflammatory medications.

Causal Agent

A factor that is directly responsible for causing a certain outcome or condition, often used in the context of diseases or environmental changes.

Bile

The fluid secreted by the liver; emulsifies fats.

Gallbladder

A small organ located beneath the liver that stores and concentrates bile, a digestive enzyme produced by the liver.