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Methodological Insights “Materiality is …”: sensemaking and sensegiving through storytelling

Rebecca Bolt (School of Business and Management, Royal Holloway University of London, Egham, UK)
Helen Tregidga (School of Business and Management, Royal Holloway University of London, Egham, UK)

Accounting, Auditing & Accountability Journal

ISSN: 0951-3574

Article publication date: 23 March 2022

Issue publication date: 10 January 2023

975

Abstract

Purpose

The purpose of this paper is to explore the role and implications of storytelling and narrative as a means of making sense of, and giving sense to, the ambiguous concept of materiality.

Design/methodology/approach

The use of stories was “discovered” through the authors' attempts to “make sense” of data from 16 interviews with participants from the financial and nonfinancial reporting and assurance contexts. The authors analyse the participants' use of stories through a sensemaking/sensegiving lens.

Findings

While participants struggle to define what materiality is, they are able to tell “stories” about materiality in action. The authors find stories are a key vehicle through which participants make sense of and give sense to materiality, for themselves and (an)other. Participants tell three types of stories in sensemaking/sensegiving processes: the lived, the adopted and the hypothetical. The authors further identify “rehearsed” and “ongoing” narratives, which take any of the three story types. The use of stories to make and give sense to materiality reveals a disconnect between the static, technical definitions of materiality currently favoured by standard setters and guidance providers, and the creative authoring processes the participants employ.

Practical implications

The authors argue for a move towards the use of stories and narratives about materiality in standard setting, specifically “materiality in action”, which the findings suggest may assist in creating shared understandings of the ambiguous concept.

Originality/value

While previous research considers what materiality means within financial and nonfinancial reporting and assurance contexts, the authors empirically analyse how people understand and make sense/give sense to materiality. The authors also contribute to the use of sensemaking/sensegiving processes within the accounting literature.

Keywords

Acknowledgements

Rebecca would like to acknowledge the support of Chartered Accountants of Australia and New Zealand (CAANZ) through the provision of the Leading Light PhD scholarship which helped fund this research. The contribution and support of Rowena Sinclair and Kate Kearins is also acknowledged. Both authors would like to thank participants at the 29th International Congress on Social and Environmental Accounting Research (CSEAR) 2017, St. Andrews and Department of Accounting and Finance, Cardiff University. The authors would also like to thank the editor and two anonymous reviewers for their constructive and helpful comments.

Citation

Bolt, R. and Tregidga, H. (2023), "Methodological Insights “Materiality is …”: sensemaking and sensegiving through storytelling", Accounting, Auditing & Accountability Journal, Vol. 36 No. 1, pp. 403-427. https://doi.org/10.1108/AAAJ-06-2021-5314

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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