Planning Materiality: Definition, Example, And Calculation
Definition: Planning materiality basically refers to the misstatement amount set by auditors at the planning stage of an audit based on the materiality to financial statements.. Planning materiality used by the auditor to assess whether the misstatement as individual or aggregate materially misstated in the financial statements.
Actived: Tuesday Jul 7, 2020
What is the effective interest rate? | WIKIACCOUNTING
Financial assets meeting the criteria of amortized cost be it to bond or mutual fund has a cash flow stream represented by the coupon rate. The coupon rate is stated at the rate at which the bond pays periodic interest/coupons. Nonetheless, over the term of the bond, the interest rate prevalent in the market generally […]
Effective interest rate Archives | WIKIACCOUNTING
Under the effective interest method, the interest income recognized is calculated by applying the market interest rate to the carrying amount of the bond and the difference between the interest income so recognized and the interest income paid is used to write-off the discount or premium such that the discount or premium is zero at the end of