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{{Accounting |expanded=Concepts}} |
{{Accounting |expanded=Concepts}} |
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'''Materiality''' is a concept or convention within [[auditing]] and [[accounting]] relating to the importance/significance of an amount, transaction, or discrepancy.<ref>Reasonable Investor(s), Boston University Law Review, available at: http://ssrn.com/abstract=2579510</ref> The objective of an [[audit]] of [[financial statement]]s is to enable the [[auditor]] to [[Auditor's report|express an opinion]] |
'''Materiality''' is a concept or convention within [[auditing]] and [[accounting]] relating to the importance/significance of an amount, transaction, or discrepancy.<ref>Reasonable Investor(s), Boston University Law Review, available at: http://ssrn.com/abstract=2579510</ref> The objective of an [[audit]] of [[financial statement]]s is to enable the [[auditor]] to [[Auditor's report|express an opinion]] whether the [[financial statement]]s are prepared, in all ''material'' respects, in conformity with an identified financial reporting framework, such as the [[Generally Accepted Accounting Principles (United States)|Generally Accepted Accounting Principles]] (GAAP) which is the accounting standard adopted by the [[U.S. Securities and Exchange Commission]] (SEC). |
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As a simple example, an expenditure of ten cents on paper is generally immaterial, and, if it were forgotten or recorded incorrectly, then no practical difference would result, even for a very small business. However, a transaction of many millions of dollars is almost always material, and if it were forgotten or recorded incorrectly, then financial managers, [[investor]]s, and others would make different decisions as a result of this error than they would have had the error not been made. The assessment of what is material – where to draw the line between a transaction that is big enough to matter or small enough to be immaterial – depends upon factors such as the size of the organization's [[revenue]]s and [[expense]]s, and is ultimately a matter of professional judgment.<ref>SEC Staff Accounting Bulletin 99 - Materiality, available at: https://www.sec.gov/interps/account/sab99.htm</ref> |
As a simple example, an expenditure of ten cents on paper is generally immaterial, and, if it were forgotten or recorded incorrectly, then no practical difference would result, even for a very small business. However, a transaction of many millions of dollars is almost always material, and if it were forgotten or recorded incorrectly, then financial managers, [[investor]]s, and others would make different decisions as a result of this error than they would have had the error not been made. The assessment of what is material – where to draw the line between a transaction that is big enough to matter or small enough to be immaterial – depends upon factors such as the size of the organization's [[revenue]]s and [[expense]]s, and is ultimately a matter of professional judgment.<ref>SEC Staff Accounting Bulletin 99 - Materiality, available at: https://www.sec.gov/interps/account/sab99.htm</ref> |
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Symbols: ~ | ¡ ¿ † ‡ ↔ ↑ ↓ • ¶ # ∞ ‹› «» ¤ ₳ ฿ ₵ ¢ ₡ ₢ $ ₫ ₯ € ₠ ₣ ƒ ₴ ₭ ₤ ℳ ₥ ₦ № ₧ ₰ £ ៛ ₨ ₪ ৳ ₮ ₩ ¥ ♠ ♣ ♥ ♦ 𝄫 ♭ ♮ ♯ 𝄪 © ® ™
Latin: A a Á á À à  â Ä ä Ǎ ǎ Ă ă Ā ā à ã Å å Ą ą Æ æ Ǣ ǣ B b C c Ć ć Ċ ċ Ĉ ĉ Č č Ç ç D d Ď ď Đ đ Ḍ ḍ Ð ð E e É é È è Ė ė Ê ê Ë ë Ě ě Ĕ ĕ Ē ē Ẽ ẽ Ę ę Ẹ ẹ Ɛ ɛ Ǝ ǝ Ə ə F f G g Ġ ġ Ĝ ĝ Ğ ğ Ģ ģ H h Ĥ ĥ Ħ ħ Ḥ ḥ I i İ ı Í í Ì ì Î î Ï ï Ǐ ǐ Ĭ ĭ Ī ī Ĩ ĩ Į į Ị ị J j Ĵ ĵ K k Ķ ķ L l Ĺ ĺ Ŀ ŀ Ľ ľ Ļ ļ Ł ł Ḷ ḷ Ḹ ḹ M m Ṃ ṃ N n Ń ń Ň ň Ñ ñ Ņ ņ Ṇ ṇ Ŋ ŋ O o Ó ó Ò ò Ô ô Ö ö Ǒ ǒ Ŏ ŏ Ō ō Õ õ Ǫ ǫ Ọ ọ Ő ő Ø ø Œ œ Ɔ ɔ P p Q q R r Ŕ ŕ Ř ř Ŗ ŗ Ṛ ṛ Ṝ ṝ S s Ś ś Ŝ ŝ Š š Ş ş Ș ș Ṣ ṣ ß T t Ť ť Ţ ţ Ț ț Ṭ ṭ Þ þ U u Ú ú Ù ù Û û Ü ü Ǔ ǔ Ŭ ŭ Ū ū Ũ ũ Ů ů Ų ų Ụ ụ Ű ű Ǘ ǘ Ǜ ǜ Ǚ ǚ Ǖ ǖ V v W w Ŵ ŵ X x Y y Ý ý Ŷ ŷ Ÿ ÿ Ỹ ỹ Ȳ ȳ Z z Ź ź Ż ż Ž ž ß Ð ð Þ þ Ŋ ŋ Ə ə
Greek: Ά ά Έ έ Ή ή Ί ί Ό ό Ύ ύ Ώ ώ Α α Β β Γ γ Δ δ Ε ε Ζ ζ Η η Θ θ Ι ι Κ κ Λ λ Μ μ Ν ν Ξ ξ Ο ο Π π Ρ ρ Σ σ ς Τ τ Υ υ Φ φ Χ χ Ψ ψ Ω ω {{Polytonic|}}
Cyrillic: А а Б б В в Г г Ґ ґ Ѓ ѓ Д д Ђ ђ Е е Ё ё Є є Ж ж З з Ѕ ѕ И и І і Ї ї Й й Ј ј К к Ќ ќ Л л Љ љ М м Н н Њ њ О о П п Р р С с Т т Ћ ћ У у Ў ў Ф ф Х х Ц ц Ч ч Џ џ Ш ш Щ щ Ъ ъ Ы ы Ь ь Э э Ю ю Я я ́
IPA: t̪ d̪ ʈ ɖ ɟ ɡ ɢ ʡ ʔ ɸ β θ ð ʃ ʒ ɕ ʑ ʂ ʐ ç ʝ ɣ χ ʁ ħ ʕ ʜ ʢ ɦ ɱ ɳ ɲ ŋ ɴ ʋ ɹ ɻ ɰ ʙ ⱱ ʀ ɾ ɽ ɫ ɬ ɮ ɺ ɭ ʎ ʟ ɥ ʍ ɧ ʼ ɓ ɗ ʄ ɠ ʛ ʘ ǀ ǃ ǂ ǁ ɨ ʉ ɯ ɪ ʏ ʊ ø ɘ ɵ ɤ ə ɚ ɛ œ ɜ ɝ ɞ ʌ ɔ æ ɐ ɶ ɑ ɒ ʰ ʱ ʷ ʲ ˠ ˤ ⁿ ˡ ˈ ˌ ː ˑ ̪ {{IPA|}}
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