What does materiality mean?

Article Abstract:

'Materiality' is one accounting and auditing concept that is very difficult to define with precision. A general rule, such as 'An item is material if it is more than 5%,' cannot be adopted because there is bound to be some cases in which this rule will not hold true. The problems of proportionality, preference and thresholds also prevent the use of the criterion 'An adjustment is material if it would affect users' decisions.' This is because this criterion implies that all adjustments may be considered material regardless of their size. The Institute of Chartered Accountants in England and Wales acknowledges the problems of preferences ad thresholds and discusses them in its recently published paper 'Materiality in Financial Reporting.' The document suggests some solutions to the difficulties arising from these problems.

Disclosure statements (Accounting)

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Birth of an expert witness

Article Abstract:

Seminars for the expert witness are regularly conducted by a group of London lawyers to help persons prepare for cross-examinations. The high frequency of attendance of accountants in such sessions illustrates the increase of expert witness work among accounting professionals as a result of the rapid growth of fraud and consequently, lawsuits. A seminar day usually consists of two meetings: morning session and afternoon session. During the morning session, a discussion on the witness duty of forensic accountants in civil cases is held while the afternoon session is devoted to their role in criminal cases. Mock trials are also held at the end of each session in which attendees giving evidence. A list of tips on how to give evidences is included.

Conferences, meetings and seminars, Practice, Accountants, Witnesses, Evidence, Expert, Expert evidence

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Moorgate Place today, tomorrow the world

Article Abstract:

The Institute of Chartered Accountants in England and Wales actively keeps channels of communication open with its overseas members. There are more than 12,300 overseas members of the Institute, and the top officers of the Institute, including President Mike Lickiss, spend a great deal of time traveling to foreign countries to maintain cordial relations with overseas members and the accounting professions of foreign lands. The officers of the Institute use their foreign excursions as opportunities to lobby government officials of foreign countries on accounting issues, and to establish and cement relationships with foreign accounting bodies.

Management, Institute of Chartered Accountants in England and Wales, Membership, Lickiss, Mike

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