Materiality

question 62

Multiple Choice

Materiality:

• A) means exercising due care and caution.
• B) provides a cut-off point in determining whether information is relevant.
• C) is linked to the qualitative characteristic of faithful representation.
• D) means attention to detail.

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Definitions:

AASB 132

The Australian Accounting Standards Board standard relating to financial instruments, covering the presentation, classification, and disclosures of financial instruments.

Financial Asset

An asset that derives value from a contractual claim, such as bank deposits, bonds, stocks, and derivatives.

Equity Instrument

A financial instrument that signifies ownership in a company and represents a claim on part of the company's assets and earnings.

Contractual Right

A legally enforceable claim that arises from a contractual agreement between parties.