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