Information is considered material if: it would have a bearing on decisions of those who use the financial statements. there is a substantial likelihood that a reasonable investor would not be concerned about the information. an item is so insignificant that users would likely ignore it. the FASB explicitly rules the transaction or item to be material.
Information is considered material if: it would have a bearing on decisions of those who use the financial statements. there is a substantial likelihood that a reasonable investor would not be concerned about the information. an item is so insignificant that users would likely ignore it. the FASB explicitly rules the transaction or item to be material.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
- Information is considered material if:
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it would have a bearing on decisions of those who use the financial statements. |
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there is a substantial likelihood that a reasonable investor would not be concerned about the information. |
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an item is so insignificant that users would likely ignore it. |
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the FASB explicitly rules the transaction or item to be material. |
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