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.

Question

Quizplus · Accepted Answer

According to AASB 1031, an item is material if its amount, by nature or size, would influence the judgement of a reasonable person relying on the information. If the amount is equal or greater than 10% of the appropriate base amount, the item is considered material. However, if the amount is equal or less than 5% of the appropriate base amount, the item is considered immaterial. Therefore, option D is the correct answer.

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