Materiality is one of the basic assumptions of accounting used by the International Accounting Standards Board (IASB).

Question

Quizplus · Accepted Answer

Materiality is a fundamental accounting concept and qualitative characteristic that guides the preparation and presentation of financial statements, but it is not classified as a basic assumption under the framework of the International Accounting Standards Board (IASB). Basic assumptions include concepts like accrual basis and going concern, while materiality is considered when determining the relevance and presentation of financial information.

Materiality Is One of the Basic Assumptions of Accounting Used