what is materiality?

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 8DQ
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what is materiality?

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Step 1 General Introduction

Materiality is an accounting concept that signifies the importance of an item to users of financial statements. Information contained in the financial statements must therefore be complete in all material respects to present a true and fair view of the affairs of the entity.

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