

An item is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial report. Materiality depends on the size and nature of the omission or misstatement judged in the surrounding circumstances.

The Australian Infrastructure Financial Management Guidelines suggest that that a misstatement of 10% is generally considered to be material, and that a misstatement in the range 5 - 10% could be material if judged so by the entity responsible for the asset class.

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External Links & References

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  3. AASB 1031 - Materiality