Materiality and Merit order: Difference between pages

From ACT Wiki
(Difference between pages)
Jump to navigationJump to search
imported>Doug Williamson
(Classify page.)
 
imported>Doug Williamson
(Deletion of See also repair)
 
Line 1: Line 1:
This is a threshold at which insignificance becomes significance. 


Often it is defined for particular circumstances in loan agreements, for example cross default shall not apply for late payment of a trade creditor for an amount less than a given threshold figure.
1. A way of ranking available sources of energy, especially electrical generation, in order of their costs of production, so that the most efficient are more likely to be called to generate, rather than less efficient plant.




Materiality is also a fundamentally important concept in financial accounting.
2. Marginal economics of production when their marginal cost is below the power price.
 
Relevant accounting standards, principles and disclosures need only be applied to material items.
 
Similarly in risk management, only material risks require active management.  (While non-material risks can be retained and monitored periodically to ensure that they remain non-material.)
 
 
== See also ==
* [[Cross default]]
* [[Default]]
* [[Loan agreement]]
* [[Guide to risk management]]
 
[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 15:40, 6 April 2013

1. A way of ranking available sources of energy, especially electrical generation, in order of their costs of production, so that the most efficient are more likely to be called to generate, rather than less efficient plant.


2. Marginal economics of production when their marginal cost is below the power price.