BIM31046 - Tax and accountancy: materiality: whether or not information is material

Materiality is an accounting concept

Whether or not information is material will depend on the size and nature of the item in question judged in the particular circumstances of the case and how the information will be used - the facts and circumstances.

The Accounting Standards Board’s statement of principles contains the following important requirements:

• Information is required to be relevant and reliable, if there is a choice, the most relevant of all reliable data is that to be included.
• Information is reliable if it can be depended upon to represent what it purports to represent, is free from deliberate or systematic and material error, is complete within the bounds of materiality and a degree of caution has been exercised under conditions of uncertainty.
• Information is relevant if it can influence the decisions of users.