Materiality in financial reporting : an integrative perspective / Francesco Bellandi.

Format:

Book

Author/Creator:

Bellandi, Francesco, author.

Language:

English

Subjects (All):

Materiality (Accounting).

Financial statements.

Physical Description:

1 online resource (657 pages)

Place of Publication:

Bingley, [England] : Emerald Publishing Limited, 2018.

Summary:

Financial reporting is a strategic means of communication: management has an opportunity to interpret, and the power to deliver, what is materially important to the organization's stakeholders. Understanding materiality means steering the company in the right direction, and many internal management battles regarding what and how to disclose in external financial reporting run on the verge of materiality. This book offers an integrated perspective of materiality from the angles of accounting (IFRS, US GAAP and SEC Rules and Regulations), auditing, internal control over financial reporting, management commentary, financial analysis, management control, forensic analysis, sustainability reporting, corporate responsibility, assurance standards, integrated reporting, and limited legal considerations. In Materiality in Financial Reporting: An Integrative Perspective, the author adopts a practical, operational approach to show how strategy, processes, and communication can be used to devise a consistent corporate governance system of materiality.

Contents:

Part I: introduction and background

Why does materiality matter in financial statements?

Powerful and dangerous

The Disclosure Framework

The Disclosure Initiative

The Disclosure Effectiveness Initiative

Objectives of the book

Part II: conceptual bases of materiality

Materiality in the conceptual frameworks

Definitions of materiality

Attributes of materiality

Part III: actors and models of materiality

Uses and effects of materiality

Who decides about materiality?

Models of materiality

Part IV: application of materiality

Materiality applied to recognition and measurement

Materiality applied to presentation and disclosure

Materiality applied to management commentary

Does materiality apply to bookkeeping?

Materiality applied to internal control over financial reporting

Part V: assessing materiality

Types of assessment and professional judgment

Quantitative thresholds of materiality

Levels of application of materiality

Benchmarks

Comparative information

Estimates

Individual versus cumulative misstatements

Verification

Immaterial misstatements

Assessing materiality in interim reporting

Assessing materiality in segment reporting

Part VI: The materiality determination process

Processes and methods

Accounting-derived approaches

Audit-derived approaches

Risk-derived approaches

Approaches derives from larger frameworks

Disclosure of the materiality process

Model disclosures of material matters

Part VII: where standard specifically require materiality judgments

Is materiality standard-specific?

What standards say users want

The notion of inconsequential or perfunctory

Materiality applied to specific unit of account

Related parties

Materiality applied to a specific items or circumstances

Part VIII: accounting materiality in the real world

The materiality paradox

Improvmenet of the effectiveness of financial statements: the Standard-Setters' view

Behavioral issues

Is there something missing?

Materiality comments on SEC staff IFRS reviews

Typical materiality abuses by management.

Notes:

Includes index.

Includes bibliographical references.

Print version record

ISBN:

9781787438439

1787438430

9781787437364

1787437361