The minimum threshold for recognition is
A)relevance
B)materiality
C)reliability
D)decision usefulness

Question

Quizplus · Accepted Answer

The minimum threshold for recognition is materiality, which means information should be recognized in the financial statements if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements. Relevance, reliability, and decision usefulness are also primary qualitative characteristics of financial reporting, but they are not directly related to the threshold for recognition.

The Minimum Threshold for Recognition Is