Accounting framework - convention of materiality, Financial Management

Assignment Help:

Accounting Framework - Convention of Materiality

Materiality means relative significance. In other words whether a matter should be disclosed or not in the financial statements depend on its materiality. American Accounting Association (AAA) describes 'Materiality' as follows. An item should be regarded as material if there is a purpose to believe in which knowledge of it would influence the decision of informed investors. Within this regard, the accountant is vitally concerned along with the following two significant matters:

(a)  Materiality of information; and

(b)  Materiality of amounts

The materiality depends on the amount and the nature of the account. It should be remembered that this doctrine of materiality also refers to separate disclosure of data in the published financial statements.

 


Related Discussions:- Accounting framework - convention of materiality

Analyze the practice of democracy, Question 1: Analyze the practice of ...

Question 1: Analyze the practice of democracy as advocated by the early Greek political thinkers. Question 2: To what extent can Man live peacefully with each other wi

LPP, A paper mill produces two grades of paper viz., X and Y. Because of ra...

A paper mill produces two grades of paper viz., X and Y. Because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons of grade Y paper i

How to calculate present value?, Illustration  Vishal Mehta & Co....

Illustration  Vishal Mehta & Co., Mumbai issued 7%, 5-year bond on 31st December 2006. The par value of a bond is Rs. 100. This bond pays interest annually and

Compute the interest, (a) These are merely the differences of the two pric...

(a) These are merely the differences of the two prices. Consequently the mark to market losses are given by { Q 1 - Q 0 ,Q 2 - Q 0 ,Q 3 - Q 0 ,Q 4 - Q

Question, You deposit $500 today in a savings account that pays 3.5% intere...

You deposit $500 today in a savings account that pays 3.5% interest, compounded annually. How much will your account be worth at the end of 25 years?

Financial and management accounting, the salaries paid in 2004 is rs 500000...

the salaries paid in 2004 is rs 500000 outstanding is rs 20000 salaries paid in advance for 2004 is rs 30000 what is the actual salary expenditure for 2004 which accounting princip

Declaration of auction results, Typically, there exist two type...

Typically, there exist two types of bids in the treasury auction process. They are: Competitive bid and non-competitive bid. A non-competitiv

Straddle strategy, An options strategy by which an investor owns a position...

An options strategy by which an investor owns a position in both a call and put market with the same strike price and expiration date.

What is cash credit, Q. What is Cash Credit? A cash credit is an arrang...

Q. What is Cash Credit? A cash credit is an arrangement by which a bank allows his customer to borrow money up to a certain limit against some tangible securities or guarantees

Calculate the portfolio weight, Assume Intel''s stock has an expected retur...

Assume Intel''s stock has an expected return of 26% and a volatility of 50%, while Coca-Cola''s has an expected return of 6% and volatility of 25%. If these two stocks were perfect

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd