1Application

1               Application

1.1           This Standard applies to each disclosing entity that is required to prepare financial reports in accordance with Part 2M.3 of the Corporations Act.

1.2           Where a disclosing entity is the parent entity in an economic entity and the financial report of the parent entity is presented with the consolidated financial report of that economic entity, this Standard applies only to the consolidated financial report.

1.2.1      The majority of disclosing entities are parent entities that are required by the Corporations Act to include in the financial report two sets of financial statements, one for the parent entity and one for the consolidated entity (comprising the parent and its subsidiaries).  In this Standard, references to the economic entity are to the consolidated entity, in which the disclosing entity is the parent entity.  When the disclosing entity is not a parent entity, references to subsidiaries are irrelevant and the requirements of this Standard apply to the disclosing entity itself.

1.3           The disclosures required by this Standard are deemed material.

1.3.1      AASB 1031 Materiality identifies where information resulting from the application of standards is material and provides guidance on the role of materiality in making judgements in the preparation and presentation of financial reports.  Because of the nature of the relationship between the reporting entity and its directors and executives, the items, transactions and balances required to be disclosed by this Standard are deemed material in all circumstances, irrespective of the amounts involved.