Materiality and Pensionable salary: Difference between pages

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''Risk management - financial reporting.''
The salary to which the pay related formula in a Defined Benefit pension scheme is applied.   
 
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.
 
 
Materiality is also a fundamentally important concept in financial accounting.
 
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.)
 
 
Non-material items are sometimes also known as ''immaterial''.


Pensionable salary will often be lower than total salary as a result of certain deductions (to exclude for example any overtime or bonus payments).


== See also ==
== See also ==
* [[Cross default]]
* [[Accrued benefits]]
* [[Default]]
* [[Defined benefit pension scheme]]
* [[Financial reporting]]
* [[Earnings cap]]
* [[Guide to risk management]]
* [[Pensionable service]]
* [[Immaterial]]
* [[Loan agreement]]
* [[Material adverse change]]
* [[Material adverse effect]]
* [[Risk management]]
* [[Stewardship]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]

Revision as of 22:36, 28 June 2013

The salary to which the pay related formula in a Defined Benefit pension scheme is applied.

Pensionable salary will often be lower than total salary as a result of certain deductions (to exclude for example any overtime or bonus payments).

See also

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