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 |