Corporate Governance Statement

“Disclosure is required of a large number of specified items, subject to the frequent proviso that amounts which are not material need not be disclosed (separately). “Material” is defined as limiting the information required to those matters as to which an average prudent investor ought reasonably to be informed before purchasing the security registered.” Chambers, R. J., 1969, Accounting Finance and Management, Arthur Andersen & Co., p. 183.
The AASB / IASB continues to struggle with the concept of materiality. In relation to Chambers’ comment over 45 years ago undertake the following:
Select a company from the Australian Securities Exchange website and download the 2015 annual report.
1. With reference to the above statement describe what you understand by the concept of materiality and provide examples from your selected annual report.
2. Discuss the problems of materiality in the context of the present AASB / IASB standards and framework using your selected annual report to provide examples.

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