Materialityperiaate

Materialityperiaate, commonly referred to as the materiality principle, is a guideline in accounting and auditing that determines which information should be included in financial statements. In practice, information is material if its omission or misstatement could influence the decisions of users such as investors, lenders, or regulators. Because users have diverse needs and the cost of reporting is a factor, the threshold for materiality is not fixed; it depends on the size, nature, and context of the item, as well as the environment in which financial statements are prepared.

In auditing, materiality is used to plan procedures and evaluate errors. Auditors set an overall materiality level for the financial statements and assess misstatements against it. They may apply performance materiality to individual accounts to determine the likelihood and significance of errors. Qualitative factors can override purely quantitative judgments: for example, misstatements that conceal fraud, breach covenants, or affect regulatory compliance can be material even if numerically small.

Standards organizations such as IFRS and US GAAP describe materiality as a guiding concept in framing financial statements. In IFRS, materiality is noted in IAS 1 and related guidance; in US GAAP, materiality guides disclosure requirements and audit planning. The concept relies on professional judgment and is reviewed continually as circumstances change.

Critically, materiality is not the same as accuracy; it balances relevance and cost of disclosure, aiming to present a truthful, useful picture without overwhelming the user.