In February 2012, the Australian Accounting Standards Boards decided at its meeting to propose the withdrawal ofAASB 1031 Materiality.There were several reasons for this proposal which includes: there is no International Reporting Standard equivalent and it does not look like there will be, since 2005 there has been the gradual withdrawal of additional Australian guidance from a number of Australian Accounting Standards, and there is now an updated guidance on materiality in theIASB Conceptual Framework.

The major impact of the withdrawal ofAASB 1031is the removal of thespecific quantitative guidance for materiality. The withdrawal ofAASB 1031became effective to annual reporting beginning on or after 1 July 2015.

REQUIRED:

1. Summarize the significant changes and impact on financial reporting withAASB 1031 Materiality(issued by the Australian Accounting Standards Boards - AASB) from 1995 to 2015. (8 Marks)

You can present your answer using a table format:

Year/Years or Changes inAASB1031 MaterialityImpact on financial reporting

Time period Standard

Asia Pacific College of Business & Law Semester 1 2020 Page9of10

1. Priorto the withdrawal ofAASB 1031and with reference to theAASB 1031 Materiality(issued by the Australian Accounting Standards Boards - AASB) and theASA 320 Materiality in Planning and Performing an AuditandASA 450 Evaluation of Misstatements Identified during an Audit(issued by the Auditing and Assurance Standards BoardAUASB), (12 Marks):
2. Define materiality.
3. Outline thequalitativeandquantitativeguidelines of materiality.
4. How the concepts and constructs ofmateriality iflece he adi feial
5. judgment on misstatements?
6. Postwithdrawal ofAASB 1031, would this withdrawal ofAASB1031 MaterialityStandards:
7. hamie/big ifmi adi aeme f maeiali miaeme
8. ld hi big diai adi aeme f miaeme?Why so?
9. What other influence, if any,hi ld big he adi jdgme
10. misstatements and what impacts or implications this would have on the usefulness of financial reports? Discuss your answer and rationale.

(Support your answers with the relevant Australian Accounting Standards and Australian Auditing Standards as well as published Peer-reviewed Academic Journals and Articles.) (10 Marks)

NOTE: In answering Question 4, use Harvard referencing style and support your answers with relevant accounting and auditing standards as well as published peer-reviewed academic journals. A minimum of 5 peer-reviewed academic journals is expected. (Hint: this is a great opportunity to utilisehe Uniei Liba Seice nline ch a Liba Seach, Adance Seach, eJnal andDatabases such as EBSCOhost, etc.)