Application 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 IV provides readers with the extant requirements for the application of materiality to recognition, measurement, presentation, and disclosure in the financial statements. This part also includes a detailed critical review of the recent Practice Statement on materiality, the FASB’s proposed ASU on the notes and the amendments to the Conceptual Framework proposed by the IASB and the FASB.
The part expands to issues that are typical of Management Commentary, including the SEC guidance on materiality in Management Discussion and Analysis.
It informs about the complexities and subtle differences between financial statements and bookkeeping and the different standards of reasonableness versus materiality.
A section moves from materiality to material misstatements and covers the application of materiality in auditing.
Another section goes in depth on internal control over financial reporting, showing the linkages between materiality and risk appetite and risk tolerance and the related application guidance.
Keywords
Citation
Bellandi, F. (2017), "Application of Materiality", Materiality in Financial Reporting, Emerald Publishing Limited, Leeds, pp. 113-197. https://doi.org/10.1108/978-1-78743-736-420171010
Publisher
:Emerald Publishing Limited
Copyright © 2018 Emerald Publishing Limited