Talk:Chart of Accounts
[quote]Materiality - principles only apply to items of a material value, which is judgemental. Things of immaterial value need not follow GAAP.[/quote]
I think this is a common misconception. Everything is material! As an accountant, you can make a judgement whether to worry about an error taking in to regard the materiality of the error - but any error is material in the sense that there should be _NO_ errors.
[quote]The COA follows accounting classifications underlying General Accepted Principles of Accounting (GAAP) in practice throughout the world.[/quote] I think technically, the COA provides information for GAAP - rather than GAAP prescribing the COA. For instance - what IFRS/IAS standard prescribes anything about account coding - I cannot think of any....