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Materiality
01-09-2010, 11:26 AM
Post: #1
Materiality
Please answer the following questions;

One of the constraints of conceptual framework for financial reporting, “Information is material if its omission or misstatement could influence the economic decisions of the users taken on the basis of the financial statements.”

1. Explain the statement in detail with examples.
2. In the context of the above statement, would you capitalize the following items in the accounts of a company? Discuss each item in detail.
a. A box file
b. A computer
c. A small plastic display stand
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Messages In This Thread
Materiality - lovely - 01-09-2010 11:26 AM
[] - Ubaid15 - 01-09-2010, 03:36 PM
[] - Dard - 01-24-2010, 03:24 AM
[] - Schuaeb - 01-24-2010, 05:11 AM

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