When assessing the materiality of a bad debtor,the accountant of Azad Limited concluded that in conformity with guidelines provided in AASB 1031 Materiality,it was not likely to be material as it:

Question

Quizplus · Accepted Answer

According to AASB 1031 Materiality, the materiality of an item is determined by its nature or amount or both. The materiality threshold should be based on a range of quantitative and qualitative factors, including the size and nature of the item. In this scenario, the bad debtor is less than 5% of total bad debtors for the period, making it unlikely to be material. Therefore, option C is the best choice.

When Assessing the Materiality of a Bad Debtor,the Accountant of Azad