Information is regarded as material if its omission or misstatement could influence the economic decisions made by users of financial reports.

Question

Quizplus · Accepted Answer

This is a definition of materiality in financial reporting. Material information is considered important enough that it could affect the economic decisions of users of financial reports. If information is not material, it may not need to be disclosed in financial reports.

Information Is Regarded as Material If Its Omission or Misstatement