Materiality Definition
Materiality is the accounting concept that the more significant missing or incorrect information is to an entity, the larger impact the error or omission may have on the decision making of users of the affected financial statements. In other words, information is material to an entity if its omission impacts the financial decisions of users of an entity’s financial statements.
Recent Articles
Best practices for implementing the new lease accounting standard
Summary provided by MaterialAccounting: This article describes the best tips for implementing ASC 842. The new standard requiring all leases longer than 12 months to be recorded on balance sheets is now in effect for nonpublic companies with a fiscal year beginning...
Lease Purchase Options and More Intersections of Fixed Assets and Lease Accounting Explained with a Full Example
Summary provided by MaterialAccounting.com: This article provides an overview of fixed asset accounting and accounting for leases under the new FASB standard, with examples. This article will explore the intersection of fixed asset accounting and accounting...
How to Keep Your Accounting Team Happy in 2023
Summary provided by MaterialAccounting.com: This article provides tips to keep your accounting team happy as the industry struggles to keep people in their current positions. According to a recent article from the Wall Street Journal, over 300,000 U.S....
Accounting for Your Software Costs
Summary provided by MaterialAccounting.com: This article provides an update on the FASB's developing rules for disclosing and presenting software costs. ---- What do Tesla cars, smart TVs and equipment used for making french fries have in common? The answer is...
Watch out: Top focal points for audit season
Summary provided by MaterialAccounting.com: Are you ready for audit season? This article explores top tips for upcoming audits, including potential trouble spots. -- As companies look ahead to audit season, it's more important than ever to stay aware of the major...
The New Lease Accounting Standard Is Here, Are You Ready?
Summary provided by MaterialAccounting.com: This article provides an overview of the new FASB standard, ASC 842, including the definition and what changes to expect during the transition. The new lease standard, Financial Accounting Standards Board (FASB) ASC 842, is...
ASC 842: The New Lease Accounting Standards Explained with Examples, Effective Dates, & More
Summary provided by MaterialAccounting.com: This article provides everything you need to know about the new lease accounting standard, ASC 842. What is ASC 842? ASC 842, or Topic 842, is the new lease accounting standard issued by the FASB and governs how entities...
FASB proposes to add recognition, derecognition guidance to conceptual framework
Summary provided by MaterialAccounting.com: This article discusses a new FASB proposal, guiding how we think about the items in financial statements. The Financial Accounting Standards Board is proposing a new chapter in its conceptual framework discussing the...