Determining, if an item is material to the users of financial statements requires professional judgement.

Name: Determining, if an item is material to the users of financial statements requires professional judgement.
Brand: Quizplus
Rating: 4.9 (49 reviews)

Question

Quizplus · Accepted Answer

Materiality is a matter of professional judgement and depends on the nature and size of the item, its context within the financial statements, and the needs of the users. Therefore, determining whether an item is material or not requires professional judgement.

Determining, If an Item Is Material to the Users of Financial