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3 Levels of Materiality

There are three levels of materiality when assessing the impact of events or transactions on financial statements: (1) Material - information that if omitted or misstated could influence decisions of financial statement users; (2) Significant - has a higher threshold than material, and failure to disclose could cause the financial statements to be misleading; (3) Clearly trivial - information that is deemed unnecessary to disclose as it does not materially misstate the financial statements if omitted or misstated.

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Ryx Guibelondo
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848 views4 pages

3 Levels of Materiality

There are three levels of materiality when assessing the impact of events or transactions on financial statements: (1) Material - information that if omitted or misstated could influence decisions of financial statement users; (2) Significant - has a higher threshold than material, and failure to disclose could cause the financial statements to be misleading; (3) Clearly trivial - information that is deemed unnecessary to disclose as it does not materially misstate the financial statements if omitted or misstated.

Uploaded by

Ryx Guibelondo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

3 LEVELS OF MATERIALITY

THREE LEVELS OF MATERIALITY 2

(AASC BULLETIN SERIES 001 OF 2010)


THREE LEVELS OF MATERIALITY (CONTINUED)
3
THREE LEVELS OF MATERIALITY (CONTINUED)
4

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