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RESEARCH ESSAY TOPIC "Materiality is nothing more than an informed sense of proportion. In everyday affairs we are quite accustomed to the kind of discrimination that is entailed. It therefore seems scarcely necessary to have an accounting doctrine to tell us to use our common sense. If the idea is extended to discrimination as between methods rather than as between results, it may acquire greater significance but generally the illustrations given of its application relate to formal features of aggregative statements rather than to the quality of the information they convey." Chambers, R. J., 1969, Accounting Finance and Management, Arthur Andersen & Co, Sydney, p. 421. 1. With reference to the above statement describe what you understand by materiality. 2. Discuss materiality in the context of the present IASB framework. 3. Select a company from the Australian Securities Exchange website and download the 2013annual report. Evaluate the effect and treatment of materiality on the annual report. 4. Comment on the relationship between materiality and decision useful information with examples from your selected annual report.
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