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

question 24

Essay

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 less than 5% of the appropriate base amount,the item is immaterial.
E)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.

• 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 less than 5% of the appropriate base amount,the item is immaterial.
• E)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:

Aggregate Supply

The aggregate amount of products and services that companies within an economy intend to offer for sale over a given period.

Aggregate Demand

The total demand for all goods and services within a particular market or economy at a given overall price level and time.

Classical School

A branch of economic thought that emphasizes the importance of market forces in determining economic outcomes and the self-regulating nature of the economy.

Great Depression

A severe and prolonged global economic downturn that occurred in the 1930s, marked by massive unemployment and deflation.