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dc.contributor.authorCameron, Robyn-Ann
dc.date.accessioned2017-05-03T12:23:40Z
dc.date.available2017-05-03T12:23:40Z
dc.date.issued2014
dc.identifier.issn17279232
dc.identifier.urihttp://hdl.handle.net/10072/64974
dc.description.abstractMateriality is a key concept in accounting theory and practice. Yet differing views exist in regard to the practical application of the materiality concept amongst preparers, auditors, users of financial reports and regulators (ESMA/2011/373). Unlike International Accounting Standards, in Australia AASB 1031 Materiality addresses materiality thresholds. The pre-2000 period, when Australian firms were required to separately disclose abnormal items in their financial reports, provides a unique opportunity to explore how the concept of materiality was applied. Abnormal items were considered abnormal by reason of their size and effect on operating earnings. We investigate whether immaterial or marginally material items were classified as abnormal, and whether materiality thresholds were consistently applied to different types of abnormal items and over time. Findings show almost a quarter (22.94%) of abnormal items were immaterial for which the overall mean was only 2.54% of the baseline earnings before abnormal items. Results are consistent when abnormal items are classified into the four predominant types by which described in financial reports and when further dissected into the forty categories by which they were themed. The outcomes of this analysis inform the current regulatory debate concerning the inclusion of immaterial items in financial reports which may mislead users (FRRP 2013) and the IASB materiality project (2013).
dc.description.peerreviewedYes
dc.description.publicationstatusYes
dc.format.extent505705 bytes
dc.format.mimetypeapplication/pdf
dc.languageEnglish
dc.language.isoeng
dc.publisherVirtus Interpress
dc.publisher.placeUkraine
dc.publisher.urihttps://doi.org/10.22495/cocv12i1c4p6
dc.relation.ispartofstudentpublicationN
dc.relation.ispartofpagefrom428
dc.relation.ispartofpageto437
dc.relation.ispartofedition2014
dc.relation.ispartofissue1
dc.relation.ispartofjournalCorporate Ownership & Control
dc.relation.ispartofvolume12
dc.rights.retentionY
dc.subject.fieldofresearchAccounting Theory and Standards
dc.subject.fieldofresearchAccounting, Auditing and Accountability
dc.subject.fieldofresearchBanking, Finance and Investment
dc.subject.fieldofresearchBusiness and Management
dc.subject.fieldofresearchcode150101
dc.subject.fieldofresearchcode1501
dc.subject.fieldofresearchcode1502
dc.subject.fieldofresearchcode1503
dc.titleApplying the Materiality Concept: The Case of Abnormal Items
dc.typeJournal article
dc.type.descriptionC1 - Articles
dc.type.codeC - Journal Articles
gro.facultyGriffith Business School, Department of Accounting, Finance and Economics
gro.rights.copyright© 2014 VirtusInterpress. The attached file is reproduced here in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
gro.hasfulltextFull Text
gro.griffith.authorCameron, Robyn


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