Information is considered material if:
A) it has predictive value.
B) its omission or misstatement could influence users' decision-making.
C) it includes all information necessary for faithful representation.
D) it is free from errors.

Question

Quizplus · Accepted Answer

Materiality is determined based on whether the omission or misstatement of information could influence the decisions made by users of the financial statements. Predictive value, faithful representation, and being free from errors are all important characteristics of financial information, but they do not necessarily determine materiality.

Information Is Considered Material If