Directors, trustees and others responsible for the preparation of financial statements make continuous judgements about materiality. However, materiality continues to be a difficult concept for preparers and boards to understand and implement. The task has become somewhat easier with the release of AASB practice statement 2 Making Materiality Judgements, which provides practical guidance and examples. We will explain what it means to you. The session will
- Discuss the general characteristics of materiality
- Explain the four-step materiality process
- Look at specific issues such as prior-period information, errors, covenants, and interim reporting, and
- Take you through a system that effectively implements guidance.
