Henk,
Sounds like someone there needs more work to do. The only adjectives I am
familiar with, from an audit point of view are 'material' and 'non-material'
-- and even we auditors not too precise about that. I guess as long as
they define what they mean and are consistent, it should be fair.
Where do they wish to use that terminology, in their letter to stockholders?
Lance J. Kronzer, CPA
900 E. Broad St - Rm. 806
Richmond (VA) City Auditor
804-646-5640
-----Original Message-----
From: Henk Rhebergen [mailto:[EMAIL PROTECTED]]
Sent: Wednesday, November 20, 2002 4:31 PM
To: [EMAIL PROTECTED]
Subject: Is there any consensus on the meaning of "financial
adjectives"?
Hello, I am new to this list and hope that anyone can help me solve an
urgent problem.
The Dutch company I work for wants to use a fixed set of adjectives in
its English financial reports to indicate, in a "clinical" fashion,
the magnitude of an increase or decrease in profits (for example in
quarterly reports and forecasts). The currently proposed set consists of the
words slight (for an increase or decrease of less than 5%), clear (about
5-10%),
substantial (10-25%), considerable (25-45%) and significant (more than
45%). Does this ranking make any sense? Is there any agreement at all in the
English-speaking financial community about the ranking of these
adjectives? Are there any better words to express these percentage
ranges?
Henk
