Although the SEC guidance is developed for public companies,the concepts regarding materiality are sound and could be followed by private companies and other organizations.

Question

Quizplus · Accepted Answer

The statement is true. While the SEC guidance is developed for public companies, the concepts of materiality are applicable to all organizations, including private companies. Therefore, private companies can also use these concepts as a guideline to determine what information is material and should be disclosed to stakeholders.

Although the SEC Guidance Is Developed for Public Companies,the Concepts