Materiality is a term used in accounting and the law, in relation to information disclosed in financial statements that affects decisions made by the people who read them.Deciding whether something is a material item involves making a judgment about it, in both quantitative and qualitative terms. Such evaluation is for...
The SEC has released a Staff Accounting Bulletin providing guidance on how the effects of the carryover or reversal of prior year misstatements should be considered in quantifying a current year misstatement.
SYNOPSIS: The Securities and Exchange Commission SEC has recently expressed concern that auditors' use of materiality allows misstatements to go uncorrected. Auditors do not require their clients to correct the financial statements for immaterial missta SYNOPSIS: The Securities and Exchange Commission SEC has recently expressed...
This article is about authors, discussing guidance that clarifies what should be addressed in engagement letters and management representation letters, and they analyze how to identify the quantitative and qualitative characteristics of potential financial statement misstatements. They provide sample wording for both engagement and management representation letters and a list...
Planning materiality is concerned with whether a misstatement, or an aggregation of misstatements, in a financial statement item or an underlying account balance or class of transaction, is likely to result in a material misstatement in the financial statements as a whole. Auditors use planning materiality to determine which items...
Perhaps the most authoritative definition of materiality is found in Financial Accounting Concepts Statement 2, Qualitative Characteristics of Accounting Information: “The magnitude of an omission or misstatement of accounting information that, in the light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the...
A public company's quarterly closing process reveals a small overstatement of sales that adds 3% to its earnings. Reversing the overstatement would mean the company would miss the consensus analyst estimates by a few cents. The CEO pushes the company A public company's quarterly closing process...
Section 11 of the Securities Act makes underwriters of a new issue liable to purchasers for material misstatements or omissions in a registration statement unless, having undertaken a reasonable investigation, the underwriter has no reason to believe the registration statement contains any such misstatement or omission. Underwriters fulfill this statutory...
Join a chat with MediaNews political reporters at the convention from 11 a.m. to noon on Thursday, August 28, 2008. A story on the front page Wednesday about this chat misstated the time. It will not take place today from 11 a.m. to noon today at http://www.contracostatimes.com...
An article in Thursday's Business section misstated the name of a Philadelphia company that makes athletic team uniforms. The correct name of the company is Boathouse Sports Ltd. The Inquirer wants its news report to be fair and correct in every respect, and regrets when it is not....
An article in Saturday's Inquirer about higher bridge tolls misstated the effect of a DRPA committee vote on senior citizen discounts. The restrictions on the discounts, rejected by the committee, would have limited seniors to one discounted bridge trip per day. An article in Saturday's Inquirer incorrectly identified the public...
NEW YORK -- 4C Controls Inc. (OTCBB: FOUR.OB) today announced that it has formally requested the U.S. Securities & Exchange Commission to take action against the perpetrators of intentionally misleading and negative misstatements made in public attacks on the Company. The Company has been subject to short sale attacks caused...
Correction ran 8/15/2008: A story and list Thursday misstated when Wisconsin created its medical furlough program for dying and infirm prisoners. The program was established in 1993. North Carolina and Alabama have joined a growing number of states establishing programs that allow the release of dying or infirm...
An article Friday misstated the date on which Harry Haus, a SEPTA bus driver, assisted Philadelphia police officers in subduing a robbery suspect. The correct date was July 9. A story in yesterday's Business section misidentified the owner of the Progresso line of food products. Progresso is owned...
A shareholder class action lawsuit has beenfiled in the United States District Court for the Western District of Texasagainst ArthroCare Corporation ("ArthroCare" or the "Company") (NASDAQ: ARTC) and certain of its officers and directors on behalf of purchasers ofArthroCare common stock, who purchased shares between January 24, 2008 andJuly 18,...
Zarlink Semiconductor (TSX: ZL)(NYSE: ZL) today reaffirmed its guidance for the first quarter of Fiscal 2009 and provided its first comments on the proxy circular issued yesterday. As provided in earlier guidance, first quarter Fiscal 2009 revenue will be approximately US$59-61 million, an increase of 8-11 percent versus...
Zarlink Semiconductor (TSX: ZL)(NYSE: ZL) received a letter from Mr. Scott Leckie, an employee of National Bank Financial. National Bank Financial acquired Mr. Leckie's previous employer, a hedge fund management company named Aquilon Capital. According to his letter, Mr. Leckie manages or controls 5.2% of Zarlink's outstanding shares,...
An article yesterday about picking a vice presidential candidate misstated what happened to Spiro Agnew after he resigned from the vice presidency in 1973. He pleaded no contest to tax evasion and received a suspended sentence; he never went to prison. The Inquirer wants its news...
Class Action To Be Held on September 15, 2008 at 9:30 a.m. PHILADELPHIA, June 30 /PRNewswire/ -- Plaintiffs' counsel in the PainCare Holdings, Inc. Securities Litigation class action today announced the following: United States District Court Middle District of Florida --...
In the June 23 issue, the article "Helping immigrants find their way" misstated the income level at which Legal Services of Eastern Missouri will offer representation. The threshold is 125 percent of the federal poverty level. We regret the error.
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