The application of the concept of materiality is of criital importance in the context of the preparation of financial statements. it impacts on decisions such as how an entity should recognise, measure and disclose specific transations and information in the fiancnial statemtns, whether missatements require correction and whether assets and liabilities or items of income or expense should be separarely presented.

To access the full text of this article, please see the Digital Edition of Accountancy Ireland, Vol 42, No 4, August 2010.