Actors and Models of Materiality
Materiality in Financial Reporting
ISBN: 978-1-78743-737-1, eISBN: 978-1-78743-736-4
Publication date: 28 November 2017
Abstract
Part III reviews the uses and effects of materiality as an accounting, legal, audit, and managerial concept. After mentioning several uses of materiality as a legal concept and explaining the FASB’s proposed direction to avoid an accounting definition, it goes in depth to the differences in the respective definitions, applications, practical interactions, and different nature of the legal and accounting views. It then draws on the differences between audit and accounting uses of materiality.
It counterbalances the interests and positions of the various stakeholders involved, such as investors, preparers, standard-setters, auditors, regulators, financial analysts, and other users of the financial statements. It shows that those who regulate, use, decide, and assess materiality are different subjects.
Finally, the part capitalizes on the author’s vast experience in industry to theorize a plethora of alternative and complementary models of materiality with their pros and cons.
Keywords
Citation
Bellandi, F. (2017), "Actors and Models of Materiality", Materiality in Financial Reporting, Emerald Publishing Limited, Leeds, pp. 69-112. https://doi.org/10.1108/978-1-78743-736-420171009
Publisher
:Emerald Publishing Limited
Copyright © 2018 Emerald Publishing Limited