explain the following accounting concepts and illustrate each with an example:
materiality
03
In accounting, materiality refers to the relative size or importance of an item or event. Financial statements should separately disclose items that are significant enough to influence decisions of users. Judgements with regard to the materiality of an item or event are based on knowledge of the company and on past experience.
91
Any insignificant items and events may be disregarded, but the full disclosure of important information should be highlighted. It depends upon the size and type of the business and the judgement of the decision maker.
原帖由 炎夏 於 2007-4-28 01:35 PM 發表
explain the following accounting concepts and illustrate each with an example:
materiality
03
In accounting, materiality refers to the relative size or importance of an item or event. Financial sta ...
我果個係
Materiality
Materiality refers to the relative size or importance of an item or event.Financial statements should separately disclose item that are significant enough to in fluence the economic decisions of users.Materiality depends on the size and nature of the item and the judgement are based on knowledge of the company and on past experience.The small expenditures for fixed assets should be treated as expenses when they are incurred rather than as depreciable assets.
應該話係..
細數無必要 獨立咁出現
i.e. 文具 係有future econ. benefit, longer than one year
但唔當佢係fixed asset (depreciable asset), 因為細數
所以一洗錢o係文具上就write off佢 (即係當佢係expense)
點為之細數(immaterial)? 唔會影響users of fin. statements 的資料就係細數, 就係immaterial
IP卡
狗仔卡
發表於 2007-4-27 22:19:44
顯身å¡
