All Materiality articles

  • Cyber-security
    News Brief

    DOJ sets expectations for SEC cyber incident disclosure delays


    Companies won’t have an easy path toward earning additional time from the Department of Justice regarding the disclosure of a material cybersecurity incident to the Securities and Exchange Commission as required under a new rule.

  • FBI logo
    News Brief

    FBI guidance: How to earn delay on SEC cyber incident disclosures


    Businesses seeking additional time before disclosing to the Securities and Exchange Commission the occurrence of a material cybersecurity incident must be prepared to provide detailed information on the matter to the Federal Bureau of Investigation.

  • Cybersecurity

    Cybersecurity challenges: Defense and disclosure


    Experts share perspectives regarding the criticality of cybersecurity risks, what the response of management and boards should be, and how proposed disclosure requirements need to be incorporated into cyber-related responsibilities.

  • Sustainability measures

    Climate and sustainability reporting challenges: Auditors’ perspectives


    Partners from several of the top global accounting firms shared perspectives about the state of sustainability reporting and the impact on auditors and their clients at a recent industry event.

  • SAI ESG thumbnail

    e-Book: Where to start on your ESG journey

    2022-10-26T03:27:00Z Provided by

    Initiating your company’s commitment to reporting its environmental, social, and governance (ESG) metrics can prove a daunting task. But keep in mind: It’s a marathon, not a sprint.

  • ESG

    ESG materiality, disclosures spur opposing views at SEC


    The SEC has taken numerous steps indicating its intention to require public companies to disclose ESG risks, but the question of how such disclosures will work in practice is still very much unanswered.

  • Blog

    FASB reprises materiality language, edits disclosures


    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


    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


    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

    FASB tees up talk on controversial materiality proposal


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

  • blackbox

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


    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

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


    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


    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


    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

    Defining a Material Issue


    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


    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


    “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

    FASB Proposes Aligning Guidance on Materiality


    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 ...