SEC's Materiality Bulletin to Eliminate "Gimmickry," Say Panelists.

Look beyond a quantitative number and look at the qualitative factors as well." So said Lynn Turner, the SEC's chief accountant, during an Aug. 20 FEI telediscussion on the SEC's new Staff Accounting Bulletin No. 99 on materiality in financial reporting. "That's the total overall mix of information that would impact an investor's decision."

Other teleconference panelists were Harvey Goldschmid, SEC general counsel, Roger Trupin, VP and controller at Citigroup, Joseph Berardino, head of Arthur Andersen's North America audit practice, and Bob Dickson, VP and treasurer at Carpenter Technology Corp. FEI's President and CEO Phil Livingston moderated the call.

Turner thinks the SAB aims to "create a level playing field for everyone. We were concerned that some people were using, if you will, gimmickry to hit the numbers as opposed to managing the business and letting the numbers fall where they should. We think most people do it right. And [we hope] it brings those in the outer boundaries back to where all the rest of us are."

The text of the SAB, Turner notes, offers "basic guidance." But he also suggests you "carefully read the foot notes for detail about where decisions come from in the literature."

Goldschmid also cautions, "Sometimes immaterial matters carried over a few years suddenly hit into something that can become material, so you want to keep an eye on the timing of these things."

There were more than 500 listeners to the teleconference. To read a complete transcript or to hear the conversation in real-time audio, visit www.fei.org.