The lack of conceptual framework led to the growth of rules-based accounting system which focusing on the accounting treatment based on specific rules or requirements. The conceptual framework resulted in principles-based accounting system, which ensure the accounting standards being developed in agreed conceptual basis focusing on the specific aim or objectives. Materiality has been regarded by International Accounting Standard Board (IASB) as crucial basis in preparing the financial statement. Required: Critically evaluate and analysis why it is important to reflect on the importance of materiality. Your evaluation and analysis should consists of the features and examples of applying materiality in preparing the financial statement.
The lack of conceptual framework led to the growth of rules-based accounting system which focusing on the accounting treatment based on specific rules or requirements. The conceptual framework resulted in principles-based accounting system, which ensure the accounting standards being developed in agreed conceptual basis focusing on the specific aim or objectives. Materiality has been regarded by International Accounting Standard Board (IASB) as crucial basis in preparing the financial statement. Required: Critically evaluate and analysis why it is important to reflect on the importance of materiality. Your evaluation and analysis should consists of the features and examples of applying materiality in preparing the financial statement.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:The lack of conceptual framework led to the growth of rules-based accounting system
which focusing on the accounting treatment based on specific rules or requirements.
The conceptual framework resulted in principles-based accounting system, which
ensure the accounting standards being developed in agreed conceptual basis focusing
on the specific aim or objectives.
Materiality has been regarded by International Accounting Standard Board (IASB) as
crucial basis in preparing the financial statement.
Required:
Critically evaluate and analysis why it is important to reflect on the importance of
materiality. Your evaluation and analysis should consists of the features and examples
of applying materiality in preparing the financial statement.
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