If it is probable that the economic decisions of users would have been influenced by the omission or misstatement of information, then that information is:

Question

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The term "material" is used in accounting and finance to refer to information that would have an impact on the economic decisions of users if it were omitted or misstated. Therefore, if it is probable that the economic decisions of users would have been influenced by the omission or misstatement of information, then that information would be considered material. Relevant information is information that is related or applicable to the matter at hand, but it may not necessarily have a significant impact on economic decisions. Significant information is information that has a large impact on economic decisions, but it may not necessarily be material if the omission or misstatement of that information would not have been probable or likely to influence economic decisions. Insignificant information is information that does not have a significant impact on economic decisions and is therefore not material.

If It Is Probable That the Economic Decisions of Users