In determining whether an item is material, consideration must be given to:

Question

Quizplus · Accepted Answer

In determining whether an item is material, both its size and nature must be considered. Size refers to the amount or magnitude of the item, while nature refers to the type or significance of the item. Both factors must be evaluated in order to determine whether an item is material and whether it should be disclosed in financial statements or other reports.

In Determining Whether an Item Is Material, Consideration Must Be