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
Prepaid Expenses Guide: Accounting, Examples, Journal Entries, and More Explained
Summary provided by MaterialAccounting.com: This blog discusses the definition of prepaid expenses, how to account for them, and provides examples. -- Accounting for prepaid expenditures and ensuring they are properly recognized on your financial statements is a...
Fixed Assets in Accounting and the Asset Turnover Ratio Explained with Examples and More
Summary provided by MaterialAccounting.com: This article breaks down fixed asset accounting and the asset turnover ratio in an easy-to-understand format with examples. --- Fixed assets are one of the main pillars of business. Many organizations would not exist or...
What’s New?: IFRS Updates for 2023
Summary provided by MaterialAccounting.com: This article provides key updates from the IFRS. It is officially summer and a time for well-deserved vacations. This time of year, when most people hear the word “international”, they think of exciting vacation...
What Nonprofits Need to Know About ASC 842
Summary provided by MaterialAccounting: Nonprofits transitioning to ASC 842 can read this article from LeaseQuery to get the tricks and tips they need for implementation. ASC 842 at a glance ASC 842 is the new FASB lease accounting standard. It governs how entities...
Time-consuming government-reporting requirements on the horizon
Summary provided by MaterialAccounting.com: This article discusses upcoming changes to the financial reporting requirements under GASB. --- The pace of issuance and implementation of new Governmental Accounting Standards Board statements continues to accelerate. Not...
FASB proposes to add guidance on accounting for profits interest awards
Summary provided by MaterialAccounting.com: This article summarizes the FASB's proposed changes to the accounting standards. The Financial Accounting Standards Board proposed an accounting standards update Thursday that would add illustrative guidance to help...
Exploring the Differences Between IFRS and GAAP
Summary provided by MaterialAccounting: This article compares and contrasts IFRS and GAAP, including examples. -- The world of financial reporting operates on two major frameworks. These include International Financial Reporting Standards (IFRS) and Generally...
Will AI be the End for Accountants?
Summary provided by MaterialAccounting.com: This article provides insights into the way accountants are reacting to the rise of artificial intelligence. Will artificial intelligence (AI) replace accountants? As someone who’s worked in, and has been trying to get out...