What is the concept of materiality?

The materiality concept is the principle in accounting that trivial matters are to be disregarded, and all important matters are to be disclosed. Items that are large enough to matter are material items. Materiality refers especially to: • The level of detail appropriate for different financial rep

Hi Swati, Information is material if its omission or misstatement could influence the economic decisions of users. Financial statements should disclose all material items. The materiality depends on the size and nature of the item. A multi-national company may consider 1 crore as immaterial in propo