ISSN:
1468-5957
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
A review of the international literature surrounding the concept of materiality yields no existing standards, no consensus of opinions, and little consistency of judgments. This study examines the initial application by auditors in the United States of SFAS No. 34 to comparative financial statements. The study finds that, relative to net income or net plant, the amount of capitalized interest judged to be material covers the same range of values as the amount judged to be immaterial. Such overlap suggests that the basis for disclosure or nondisclosure is not at all clear and that comparison of one firm's results with another may be hampered. The suggestion is made that the most immediate solution to this problem is disclosure and communication of the materiality guidelines used by the preparer of the (inancia1 statements.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1468-5957.1984.tb00769.x
