Intermediate Accounting (16th Edition)

Published by Wiley
ISBN 10: 1118743202
ISBN 13: 978-1-11874-320-1

Chapter 2 - Conceptual Framework for Financial Reporting - Review and Practice - Bridge to the Profession - Codification Research Case - Page 73: a

Answer

a.Materiality refers to an item's magnitude/ significance/ weight in financial statements. Material items are substantive, and their inclusion in financial statements impacts users' judgments ("FASB, 250-10-S99-10").

Work Step by Step

a.Materiality refers to an item's magnitude/ significance/ weight in financial statements. Material items are substantive, and their inclusion in financial statements impacts users' judgments ("FASB, 250-10-S99-10").
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