In February 2012, the Australian Accounting Standards Boardsdecided at its meeting to propose the...

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Accounting

In February 2012, the Australian Accounting Standards Boardsdecided at its meeting to propose the withdrawal of AASB 1031Materiality. There were several reasons for this proposal whichincludes: there is no International Reporting Standard equivalentand it does not look like there will be, since 2005 there has beenthe gradual withdrawal of additional Australian guidance from anumber of Australian Accounting Standards, and there is now anupdated guidance on materiality in the IASB Conceptual Framework.The major impact of the withdrawal of AASB 1031 is the removal ofthe specific quantitative guidance for materiality. The withdrawalof AASB 1031 became effective to annual reporting beginning on orafter 1 July 2015. REQUIRED: 1. Summarize the significant changeswith AASB 1031 Materiality (issued by the Australian AccountingStandards Boards - AASB) from 1995 to 2015.

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The withdrawal of AASB 1031 materiality amends the AASB 108 Accounting policies Changes in Accounting Estimates The term Material is defined in AASB 108 Accounting policies Changes in Accounting Estimates and Errors When assessing materiality See Answer

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In: AccountingIn February 2012, the Australian Accounting Standards Boardsdecided at its meeting to propose the withdrawal...In February 2012, the Australian Accounting Standards Boardsdecided at its meeting to propose the withdrawal of AASB 1031Materiality. There were several reasons for this proposal whichincludes: there is no International Reporting Standard equivalentand it does not look like there will be, since 2005 there has beenthe gradual withdrawal of additional Australian guidance from anumber of Australian Accounting Standards, and there is now anupdated guidance on materiality in the IASB Conceptual Framework.The major impact of the withdrawal of AASB 1031 is the removal ofthe specific quantitative guidance for materiality. The withdrawalof AASB 1031 became effective to annual reporting beginning on orafter 1 July 2015. REQUIRED: 1. Summarize the significant changeswith AASB 1031 Materiality (issued by the Australian AccountingStandards Boards - AASB) from 1995 to 2015.