Question

Do you believe that the $785,000 amount at the center of the Overstock-Grant Thornton dispute was material? Defend your answer. What factors other than quantitative considerations should have been considered in deciding whether the $785,000 amount was material?

Answer 1

as per the US GAAP no specific defination of materiality is defined but now there is a concern about overstatement of stock whether it is material or not . It depends on our on consideration of level of materiality

For example

Value

as if our stock is amounting to $ 7,85,00,000 then overstatement of $785000 is not our concern but if our stock is $ 1700000 then overstatement is our concern    

LAW

as per government policy stock should be valued at its actual price then overstatement should be our concern

as these are various points which as which are considered while deciding that $ 785000 amount is material or not