Disclosures of materiality: the practice of Malaysian companies

The reporting of information in the financial statements is pervasively based on the materiality concept. For the purpose of disclosing financial information, auditors use their professional judgments in deciding the appropriate materiality thresholds. There is evidence of a lack of consensus in dis...

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Main Authors:	Takiah Mohd. Iskandar, Syed Mohd. Ghazali Wafa Syed Adwam Wafa, Selamat Kundari, Rosiati Ramli
Format:	Article
Language:	English
Published:	Penerbit Universiti Kebangsaan Malaysia 1998
Online Access:	http://journalarticle.ukm.my/7980/ http://journalarticle.ukm.my/7980/ http://journalarticle.ukm.my/7980/1/822-1568-1-SM.pdf

id	ukm-7980
recordtype	eprints
spelling	ukm-79802016-12-14T06:45:49Z http://journalarticle.ukm.my/7980/ Disclosures of materiality: the practice of Malaysian companies Takiah Mohd. Iskandar, Syed Mohd. Ghazali Wafa Syed Adwam Wafa, Selamat Kundari, Rosiati Ramli, The reporting of information in the financial statements is pervasively based on the materiality concept. For the purpose of disclosing financial information, auditors use their professional judgments in deciding the appropriate materiality thresholds. There is evidence of a lack of consensus in disclosure thresholds that researchers and practitioners believe to have arisen from the absence of a clear guideline on materiality. This study uses an archival approach to provide empirical evidence of materiality thresholds for the disclosure of financial informatzon among companies in the retall and finance industries in Malaysia. Results show that the threshold of a majority of the disclosed items being examined is very low (i.e., below 5% of net profit for the current year). The study found a significant difference in disclosure threshold between industries. The study suggests that specific guidelines on materiality threshold for different industries should be established for the disclosure of financcal items. Penerbit Universiti Kebangsaan Malaysia 1998 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/7980/1/822-1568-1-SM.pdf Takiah Mohd. Iskandar, and Syed Mohd. Ghazali Wafa Syed Adwam Wafa, and Selamat Kundari, and Rosiati Ramli, (1998) Disclosures of materiality: the practice of Malaysian companies. Jurnal Pengurusan, 17 . pp. 55-68. ISSN 0127-2713 http://ejournals.ukm.my/pengurusan/issue/view/207
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The reporting of information in the financial statements is pervasively based on the materiality concept. For the purpose of disclosing financial information, auditors use their professional judgments in deciding the appropriate materiality thresholds. There is evidence of a lack of consensus in disclosure thresholds that researchers and practitioners believe to have arisen from the absence of a clear guideline on materiality. This study uses an archival approach to provide empirical evidence of materiality thresholds for the disclosure of financial informatzon among companies in the retall and finance industries in Malaysia. Results show that the threshold of a majority of the disclosed items being examined is very low (i.e., below 5% of net profit for the current year). The study found a significant difference in disclosure threshold between industries. The study suggests that specific guidelines on materiality threshold for different industries should be established for the disclosure of financcal items.
format	Article
author	Takiah Mohd. Iskandar, Syed Mohd. Ghazali Wafa Syed Adwam Wafa, Selamat Kundari, Rosiati Ramli,
spellingShingle	Takiah Mohd. Iskandar, Syed Mohd. Ghazali Wafa Syed Adwam Wafa, Selamat Kundari, Rosiati Ramli, Disclosures of materiality: the practice of Malaysian companies
author_facet	Takiah Mohd. Iskandar, Syed Mohd. Ghazali Wafa Syed Adwam Wafa, Selamat Kundari, Rosiati Ramli,
author_sort	Takiah Mohd. Iskandar,
title	Disclosures of materiality: the practice of Malaysian companies
title_short	Disclosures of materiality: the practice of Malaysian companies
title_full	Disclosures of materiality: the practice of Malaysian companies
title_fullStr	Disclosures of materiality: the practice of Malaysian companies
title_full_unstemmed	Disclosures of materiality: the practice of Malaysian companies
title_sort	disclosures of materiality: the practice of malaysian companies
publisher	Penerbit Universiti Kebangsaan Malaysia
publishDate	1998
url	http://journalarticle.ukm.my/7980/ http://journalarticle.ukm.my/7980/ http://journalarticle.ukm.my/7980/1/822-1568-1-SM.pdf
first_indexed	2023-09-18T19:51:09Z
last_indexed	2023-09-18T19:51:09Z
_version_	1777406227750322176

Disclosures of materiality: the practice of Malaysian companies

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