The Benefits of Rethinking Materiality for Small Governments
The Benefits of Rethinking Materiality for Small Governments
Conference RegistrationSession Details
Date: Monday, June 29
Time: 8:30 am - 10:10 am CT
1 CPE credits
Level: intermediate
Field of Study: Accounting (Governmental)
Location: E450
Are governments too cautious in their approach to defining materiality for financial reporting? Does this contribute to longer reports, less timely production of information, and increased complexity and cost? Finance professionals must make a difficult choice in weighing decision-useful information versus exhaustive precision. In this session, speakers will discuss how to evaluate risk, understand expectations from the Governmental Accounting Standards Board (GASB), and how financial professionals can make appropriate and more systemic decisions on materiality.
This session will be hosted by GFOA's Small Government Forum and feature fifty minutes of presentation, followed by fifty minutes of networking, peer discussion, and updates on the Small Government Forum.
Learning Objectives
- Understand how GASB defines materiality and why determinations rely on professional judgment
- Identify financial reporting areas where immateriality assessments are commonly applied, such as disclosures, note requirements, and fund reporting
- Differentiate between quantitative and qualitative factors that influence materiality determinations, including situations where qualitative considerations override dollar size
- Apply common quantitative benchmarking approaches used in practice to evaluate whether financial statement items are likely material or immaterial
- Facilitate conversation regarding materiality concerns with your auditor