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Part V analyzes the details of how to assess materiality. It first tackles qualitative versus quantitative criteria and the role of professional judgment. It then analyzes the selection of quantitative threshold, to expand to the choice of benchmarks. It contrasts the whole financial statements with subaggregates, line items, and components.

Specific sections contrast IASB, FASB, SEC, and other guidance on materiality applied to comparative information, interim reporting, and segment reporting.

The section on estimates mingles complex guidance coming from accounting, auditing, and internal control over financial reporting to explain how the management can improve its assessment of materiality concerning estimates.

After explaining the techniques to move from individual to cumulative misstatements, the part tackles verification ex post, and finally summarizes the intricacies of whether immaterial misstatements are permissible and their consequences.

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.

Purpose — This chapter examines links between mobility, risk of social exclusion (SE) and well-being and uses its findings to impute a value to improved (or reduced) mobility. It applies the relevant value to show the benefits of the Melbourne route bus network and to estimate loadings on individual services that are required for service user benefits to break-even with service costs.

Methodology — The research findings are based on econometric modelling of risk of SE and well-being, as a function of a range of likely contributory factors. The modelling draws on household travel survey data and on survey data specifically collected on factors thought likely to affect risk of SE and/or well-being. These factors include social capital, sense of community, household income and trip making, together with a range of psychological and personality variables.

Findings — The modelling shows that a reduced risk of SE is associated with increases in social capital, sense of community, household income and trip making. A lower risk of SE, in turn, is associated with improved reported personal well-being, which is also affected by a range of psychological variables and age. The analysis shows that additional trip making is very highly valued and that this value increases as household income declines. A case study that applies the resulting values shows that Melbourne’s route bus services produce benefits almost four times their costs and that the ‘social inclusion’ benefits calculated in this research comprise the largest single benefit component. This result is particularly important in supporting further investment in improved public transport services.

Corruption was a serious problem in Singapore during the British colonial period and especially after the Japanese Occupation (February 1942–August 1945) mainly because of the lack of political will to curb it by the incumbent governments. In contrast, the People’s Action Party (PAP) government, which assumed office in June 1959 after winning the May 1959 general election, demonstrated its political will with the enactment of the Prevention of Corruption Act (POCA) in June 1960, which strengthened the capacity of the Corrupt Practices Investigation Bureau (CPIB) to combat corruption effectively. Indeed, Singapore’s success in curbing corruption is reflected in its consistently high scores on Transparency International’s Corruption Perceptions Index (CPI) from 1995 to 2012 as the least corrupt country in Asia. Singapore was ranked first with Denmark and New Zealand in the 2010 CPI with a score of 9.30. Similarly, Singapore has been ranked first in the Political and Economic Risk Consultancy (PERC) annual surveys on corruption from 1995 to 2013. Why has Singapore succeeded in minimizing the problem of corruption when many other Asian countries have failed to do so? What lessons can these countries learn from Singapore’s experience in combating corruption? This chapter addresses these two questions by first describing Singapore’s favorable policy context, followed by an identification of the major causes of corruption during the British colonial period and Japanese Occupation, and an evaluation of the PAP government’s anti-corruption strategy.

Although the global economic crisis that began in 2007 has renewed interest in Keynes among the wider educated public, graduate courses in macroeconomics usually teach little about Keynes and the issues he analyzed, and what little they teach is often wrong (e.g., that Keynes assumed an arbitrarily fixed money wage rate or that he ignored expectations). Consequently, as macroeconomists turn their attention to the possibility, causes and consequences of financial crises and global depression, they do not have access to the insights into these questions produced by earlier generations of economists. The time and attention constraints of theory courses do not allow simply directing the students to the extensive scholarly literature on the economics of Keynes, so this paper offers a suggested introduction to the economics of Keynes for a graduate course in macroeconomics.

Purpose – For much of the first half of 2003 world attention was captured by news of a mysterious but deadly virus that was claiming lives in places as distant as Toronto and Beijing. In a matter of months there were around 8,000 infections and over 689 deaths related to severe acute respiratory syndrome (SARS). In my hometown, Toronto, 43 people died of SARS during the outbreaks of 2003.

Approach – This chapter examines issues of class and poverty in emergence of SARS. The chapter begins with a discussion of the political economy of the emergence of SARS, and its relation to the spread of the virus. It then discusses issues of public policy, and particularly neo-liberal cuts to social services and public spending, that set the stage for the SARS outbreak, influenced its impact and contributed to the failures of response in Ontario.

Findings – Through analysis of the lack of social resources available to working people in the province and the prioritizing of corporate, particularly tourism industry, concerns, the chapter illustrates how issues of class underpinned public responses to SARS, exacerbating problems. The chapter concludes by giving attention to the need for social solidarity and community mutual aid.

Contributions to the field – The chapter shows the extent to which neo-liberal governments prioritize business security above the health and social security of workers and reveals some of the ways in which the pressures of capitalist social relations make people ill.

This study investigates the linkage between the Hong Kong stock market and Singapore stock market and the U.S. stock market during the pre- and post-East Asia Financial Crisis in 1997 and 1998. It uses multivariate regression models to study the impact of Hong Kong’s fixed exchange rate system and Singapore’s free-floating exchange rate system on their respective stock markets. The results indicate that the exchange rate is not a significant determinant of linkage between the U.S. and the two Asian stock markets, but the evidence suggests that stronger post-crisis relationships between the U.S. and the two Asian stock markets. The evidence also supports a stronger short-run relationship between the U.S. and Hong Kong stock markets relative to that between the U.S. and Singapore stock markets.

Purpose — This chapter considers some key policy implications of the research described in this book on links between transport disadvantage, social exclusion and well-being.

Methodology — Two high-level policy frameworks are outlined and some research results are viewed through the lenses of these frameworks. The two frameworks are (1) place-based versus functional approaches and (2) economic versus social approaches.

Findings — Transport, land use and outreach opportunities are outlined as possible ways to tackle problems of transport disadvantage that may adversely impact social exclusion and well-being. These require place-based approaches. Difficulties in making the switch from traditional functionally based policy thinking to place-based, integrated approaches are highlighted. These difficulties pose a challenge for effective reduction in transport disadvantage and its associated risks of social exclusion and diminished well-being.

The chapter also shows how the traditional economic cost–benefit approach to transport policy becomes much closer to a social policy approach when the research results about the value of improved trip making, as it affects risks of social exclusion, are incorporated in the analysis. Minimum public transport service levels are suggested as meeting both economic and social policy goals in this regard. Community transport is seen as an effective way to tackle some problems of transport disadvantage but as possibly posing risks of entrenched exclusion for some.