AASB approves changes to definitions of a ‘business’ and ‘material’

To align with equivalent changes approved by the International Accounting Standards Board in October 2018, the Australian Accounting Standards Board published the following standards to amend the definitions of a ‘business’ and ‘material’ in December 2018:

Amending standard Purpose
AASB 2018-6 Amendments to Australian Accounting Standards – Definition of a Business Clarifies the definition of a ‘business’ to assist entities when determining whether a transaction should be accounted for as a business combination or an asset acquisition.
AASB 2018-7 Amendments to Australian Accounting Standards – Definition of Material Clarifies the definition of what is ‘material’ to the financial statements, including adding guidance and explanations to accompany the definition.

More information

Please refer to November 2018 Accounting News articles on the changes to the definition of a ‘business’ and ‘material' for more information.