Väsentligheter

Väsentligheter is a Swedish term that translates to "materialities" or "essentials" in English. It is commonly used in accounting and auditing to refer to information that, if omitted or misstated, could influence the economic decisions of users of financial statements. The concept of materiality is central to determining what information needs to be disclosed and presented in a reliable manner. Auditors use materiality to plan and perform their audits, focusing their efforts on areas where misstatements are more likely to be material.

The determination of materiality involves both quantitative and qualitative factors. Quantitatively, it relates to the size of an item in relation to other financial data, such as total assets, revenue, or net income. Qualitatively, it considers the nature of an item. For example, an illegal payment, even if small in amount, might be considered material due to its nature. Professional judgment is crucial in assessing materiality, as there is no single, universally applicable threshold. Different stakeholders may have varying perspectives on what constitutes a material item.

In accounting standards, such as International Financial Reporting Standards (IFRS) and Generally Accepted Accounting Principles (GAAP), materiality is defined as information that is material if omitting, misstating, or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make. The concept aims to ensure that financial statements provide a true and fair view of an entity's financial position and performance by focusing on the most important information.