Materiality

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Description

The relative importance of an item or amount. Items significant enough to influence economic decisions are said to be material. Items lacking this importance are considered immaterial. The accounting treatment accorded to immaterial items may be guided by convenience rather than by theoretical principles.

Concept Prerequisite

Wikipedia Reference

http://en.wikipedia.org/wiki/Materiality (auditing)

Learning Material

Covered in Topic(s)

 
The Accounting Cycle: Accruals & Deferrals