The FASB definition of materiality emphasizes what class of financial statement users?
A) Informed investors.
B) Potential investors.
C) Regulators.
D) Reasonable persons.

Question

Quizplus · Accepted Answer

The FASB (Financial Accounting Standards Board) definition of materiality emphasizes the perspective of "reasonable persons." This approach is based on the idea that information is material if omitting it or misstating it could influence the decisions of users of financial statements, who are considered to be reasonable in their expectations and actions.

The FASB Definition of Materiality Emphasizes What Class of Financial