The impact of materiality : accounting’s best kept secret

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Title: The impact of materiality : accounting’s best kept secret
Authors: Brennan, Niamh
Gray, S. J.
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Date: 2005
Abstract: This paper comprises a review of the literature on materiality in accounting. The paper starts by examining the context in which materiality is relevant, and the problems arising from applying the concept in practice. Definitions of materiality from legal, accounting and stock exchange sources are compared. The relevance of materiality to various accounting situations is discussed. Methods of calculating quantitative thresholds are described and illustrated. Prior research is reviewed, focussing on materiality thresholds, and on the materiality judgements of auditors, preparers and financial statement users. The paper concludes with some suggestions for future research and for policy makers concerning this best kept accounting secret.
Funding Details: Not applicable
Type of material: Journal Article
Publisher: Asian Academy of Management (AAM) and Penerbit Universiti Sains Malaysia
Journal: Asian Academy of Management Journal of Accounting and Finance
Volume: 1
Start page: 1
End page: 31
Keywords: Materiality definitionsMateriality thresholdsMateriality rules of thumbMateriality judgments
Subject LCSH: Materiality (Accounting)--Research
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Language: en
Status of Item: Peer reviewed
Appears in Collections:Business Research Collection
UCD RePEc Archive Collection

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