Materiality

Business, Legal & Accounting Glossary

Definition: Materiality


Quick Summary of Materiality


Information is material if its omission or misstatement could influence the economic decisions of users taken on the basis of the financial statements.



What is the dictionary definition of Materiality?

Dictionary Definition


Within auditing and accounting, Materiality is a concept or convention relating to the importance/significance of an amount, transaction, or discrepancy.

  1. The quality of being material; having a physical existence.
  2. legal The quality of being of consequence to a legal decision.

Synonyms For Materiality


substantiality, corporeality, substance, importance, significance

Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/materiality/
Modern Language Association (MLA):
Materiality. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. July 08, 2020 https://payrollheaven.com/define/materiality/.
Chicago Manual of Style (CMS):
Materiality. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/materiality/ (accessed: July 08, 2020).
American Psychological Association (APA):
Materiality. PayrollHeaven.com. Retrieved July 08, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/materiality/

Definition Sources


Definitions for Materiality are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 6th January, 2020 | 92 Views.