Definition
Materiality helps determine whether information could influence the decisions of primary users of financial statements. It is not a permanent monetary threshold and not permission to ignore every small amount. The amount, nature and circumstances in which information is used all matter. Source: **curr-stat-ias8-text**, Definitions, material; the edition issued in 2026 requires checking the effective date of related amendments.
How to apply the idea
For example, a small amount may change profit into a loss or matter when assessing a contractual restriction. Several separate omissions must also be considered together. An analyst should not present an educational percentage as an established auditor materiality level.
Do not confuse materiality with precision to the last rouble. Rounding and disclosure of a significant risk concern different aspects of informativeness. When reading, ask whether the conclusion would change under another amount or without an explanation, and which users rely on the information.