Essay: The Concept of Materiality

Essay: The Concept of Materiality
June 8, 2011 Comments Off on Essay: The Concept of Materiality Academic Papers on Sociology,Sample Academic Papers admin

Sample Essay

All improvements in standards need to be applied while considering the concept of materiality. A great deal of emphasis on valuation and disclosure of every single matter may result in exhaustive procedures and much of the information contained in financial statements and the related notes may prove irrelevant to shareholders.

This would only increase the complexity of financial statements for stakeholders and interpretation of these statements may be distorted. The important task of improving financial reporting and disclosure is still incomplete as regulators need to ensure that companies adhere to improved accounting standards and regulations concerning financial statements. These steps are necessary as proper implementation of standards is the key to avoiding financial pandemonium and chaos in the future.

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