Explore BrainMass

Materiality of non-cash asset thefts

What are the impacts of Non-Cash asset thefts on balance sheet and income statement? When does it become material?

Solution Preview

Remember that the definition of materiality is the "magnitude of an omission or misstatement of accounting information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable person relying on the information would have been changed ...

Solution Summary

The solution defines the materiality concept and then provides three examples of when materiality could be judged to impact the financial statements.