Define: Materiality

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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.

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Related Phrases

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.

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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. February 26, 2020 https://payrollheaven.com/define/materiality/.
Chicago Manual of Style (CMS):
Materiality. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/materiality/ (accessed: February 26, 2020).
American Psychological Association (APA):
Materiality. PayrollHeaven.com. Retrieved February 26, 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)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.