Accounting Importance To Determine The Standard

The correctness and completeness of the financial statements are limited to material facts only. Therefore, how to determine a proper trade-off line of materiality threshold to satisfy both the providers and users of accounting information is a critical subject in this research, At this point, the judgment of materiality does significantly affect the presentation of financial statements. This paper is consists of five chapters:The first chapter is"Introduction". In this chapter, it narrates the status of the current practices and issues of materiality judgment. Besides this, it provides a general description of the meaning on this topic and reviews the academic papers and research in this field. Chapter 2 is"The comparative analysis of materiality judgment criterion". This chapter analyzes the materiality concept from the perspective of accounting and auditing and provides specific comments of the authoritative institutions and scholars. Chapter 3 is"the applications of the criteria for materiality judgments in false statements of listed companies".This chapter details the scope of application in the materiality judgments and specific forms of false statements in accounting information. Chapter 4 is"The case study of the criteria for materiality judgments". It analyzes the situation of false statements for accounting information in the stock market, found that there are many problems in practice, And take the typical cases for example to analyze how individual enterprises deliberately misuse"materiality"in order to achieve the purpose of profit manipulation. Finally, this paper proposes some recommendations and also lists out some issues needed further researches.