All Materiality articles

  • Blog post

    FASB reprises materiality language, edits disclosures

    2018-08-29T08:45:00Z

    GAAP now contains a shorter list of disclosure requirements for fair-value measurements and defined benefit plans, along with a reprised definition of materiality.

  • Article

    Recent findings raise fresh questions over auditors and fraud

    2018-01-17T21:15:00Z

    Recent findings against PwC illuminate audit failures that the PCAOB has been harping on for years, although its ultimate weight on auditors' duty to find fraud is not yet clear.

  • Article

    Sexual harassment must become a compliance issue

    2017-11-07T10:00:00Z

    No longer can sexual harassment claims be shuffled off to the HR department. The accusations need to be viewed in terms of materiality and reputation risk.

  • Blog post

    FASB tees up talk on controversial materiality proposal

    2017-11-06T08:15:00Z

    The Financial Accounting Standards Board plans at its next public meeting to discuss its controversial proposal to alter the GAAP concept of materiality.

  • blackbox
    Article

    The classic post-scandal question to auditors: What happened in the black box?

    2017-09-12T11:00:00Z

    When investors decry the black box of public company auditing, asking for more visibility, they’re referring to cases like KPMG’s audit work at Wells Fargo.

  • Blog post

    New revenue rule immaterial? Don't overlook disclosure, SEC says

    2017-05-09T10:15:00Z

    The SEC is warning companies that say adopting new revenue rules will be immaterial to financials: Be sure that includes consideration of disclosures.

  • Article

    SEC Committee Ups Ante in Fight Against FASB Materiality Changes

    2016-01-26T10:30:00Z

    Members of the SEC’s Investor Advisory Committee are ramping up their fight with FASB over proposals that redefine its approach to materiality in financial statements. The plan is “fraught with the risk that disclosures that are unfavorable to the issuer are disproportionately viewed as immaterial and as a result excluded ...

  • Article

    SEC Girds for Next Wave of Political Battles

    2015-12-01T10:00:00Z

    On paper, the next several months mark the final stretch for the SEC’s implementation of Dodd-Frank Act rulemaking. In reality expect continued battles over the law, waged by both Republicans and Democrats. Recent congressional hearings gave a sense of what’s to come: stress tests for asset management funds, fights over ...

  • Blog post

    Defining a Material Issue

    2015-11-24T09:45:00Z

    You see the sentence all the time: “The provisions of this Codification need not be applied to immaterial items.” Those 12 simple words, while universally understood to mean “don’t include unimportant things in financial statements,” are still relatively unclear. In fact, applying the concept of materiality to accounting has gotten ...

  • Article

    FASB Ideas on Materiality Reform Draw Heat, Questions

    2015-11-17T10:45:00Z

    Image: An effort to align the accounting world’s definition of materiality with how the idea is widely understood in legal circles is sparking a fierce debate in corporate accounting circles, with potentially big consequences for financial reporting. “More information or more disclosure is better than less, in general,” said Damon ...

  • Article

    Defining Materiality and Sustainability

    2015-09-29T14:15:00Z

    “Materiality” has long been defined as that financial information which might harm or benefit a shareholder. In modern corporate governance, however, that’s changing. One new proposal seeks to define material information in terms of sustainability for multiple stakeholders, not just shareholders. That has sparked debates over fiduciary duty, corporate personhood, ...

  • Blog post

    FASB Proposes Aligning Guidance on Materiality

    2015-09-25T11:15:00Z

    Image: FASB has issued two new exposure drafts—one to help firms use discretion when deciding which footnote disclosures should be considered material; the other to clarify the concept of materiality for standard-setting purposes. The proposals are intended to help organizations improve the effectiveness of their disclosures by steering them away ...