AASB 101 Presentation of Financial Statements has been revised for annual reporting periods beginning on or after 1 January 2023 (i.e. 30 June 2024 year end) to require the disclosure of material accounting policy information rather than significant accounting policies.
Accounting policy information is material if when considered with other information could reasonably be expected to influence decisions of primary users based on the financial statements, i.e. Is it needed to understand other material information in the financial statements?
- Accounting policy information likely to be material if it relates to:
- Changes in accounting policy
- Documentation of choice in the accounting standards
- An accounting policy developed in the absence of an explicit accounting standard requirement
- Significant judgment or estimation
- Complex transaction and accounting policy need to explain treatment.
Caseware’s content provider Carmen Ridley, has reviewed the accounting policies within the cloud financials template, and highlighted those that do not meet the above definition of material.
The attached pdf’s list the accounting policies when they are disclosed within the main notes, and alternatively within the material accounting policy information note.
Accounting policy disclosures highlighted sample text are not considered material.