Material Misstatement of What? A Comment on Smieliauskas et al., 'A Proposal to Replace "True and Fair View" with "Acceptable Risk of Material Misstatement" '

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Abstract

This comment explores theoretical and practical aspects of the Smieliauskas et al. (2008), 'A Proposal to Replace "True and Fair View" With "Acceptable Risk of Material Misstatement", and develops the ideas outlined there. It is argued that these proposals are helpful, but theoretically incomplete. Theoretical developments relating to accounting aspects are offered, and proposed for others to take further. The pragmatic implications suggest difficulties in the operationalization of the ideas of the original paper in a world of multiple and inconsistent user needs.

Details

Original languageEnglish
Pages (from-to)447-454
Number of pages8
JournalAbacus
Volume46
Issue number4
Publication statusPublished - 1 Dec 2010

Keywords

  • Material misstatement, Risk reporting, True and fair view