TRUE OR FALSEWhen making materiality judgments, a quantitative assessment alone is not always sufficient to conclude that an item of information is not materialMateriality judgments apply only to items that are recognized - but not to those that are unrecognizedThe more significant the qualitative factors are, the lower the quantitative thresholds will be. Thus, an item with a zero amount can be material in light of qualitative thresholds.When making materiality judgments, an entity should judge an item’s materiality only on its own and not in combination with other information in the complete set of financial statementsThe Conceptual Framework and the Standards specify a uniform quantitative threshold for materialityTo meet the objectives of general-purpose financial reporting, a Standard sometimes contains requirements that depart from the Conceptual FrameworkThe Conceptual Framework is concerned with the provision of financial information to both external users and internal users

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10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

TRUE OR FALSE

When making materiality judgments, a quantitative assessment alone is not always sufficient to conclude that an item of information is not material
Materiality judgments apply only to items that are recognized - but not to those that are unrecognized
The more significant the qualitative factors are, the lower the quantitative thresholds will be. Thus, an item with a zero amount can be material in light of qualitative thresholds.
When making materiality judgments, an entity should judge an item’s materiality only on its own and not in combination with other information in the complete set of financial statements
The Conceptual Framework and the Standards specify a uniform quantitative threshold for materiality
To meet the objectives of general-purpose financial reporting, a Standard sometimes contains requirements that depart from the Conceptual Framework
The Conceptual Framework is concerned with the provision of financial information to both external users and internal users

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