imported>Doug Williamson |
imported>Doug Williamson |
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| ''Risk management - financial reporting.''
| | Risk evaluation techniques using a random process to produce a distribution of possible outcomes. |
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| This is a threshold at which insignificance becomes significance.
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| 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.
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| Materiality is also a fundamentally important concept in financial accounting.
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| Relevant accounting standards, principles and disclosures need only be applied to material items.
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| Similarly in risk management, only material risks require active management.
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| (While non-material risks can be retained and monitored periodically to ensure that they remain non-material.)
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| Non-material items are sometimes also known as ''immaterial''.
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| == See also == | | == See also == |
| * [[Cross default]] | | * [[Monte Carlo method]] |
| * [[Default]]
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| * [[Financial reporting]]
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| * [[Guide to risk management]]
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| * [[Immaterial]]
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| * [[Loan agreement]]
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| * [[Material adverse change]]
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| * [[Material adverse effect]]
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| * [[Risk management]]
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| * [[Stewardship]]
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| * [[Threshold]]
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| * [[Trade creditors]]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:The_business_context]]
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| [[Category:Corporate_finance]]
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| [[Category:Identify_and_assess_risks]]
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| [[Category:Manage_risks]]
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| [[Category:Risk_frameworks]]
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| [[Category:Risk_reporting]]
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