Materiality
Materiality is a threshold quality of useful information, rather than being a primary qualitative characteristic which information must have if it is to be useful. Information is material if its omission or misstatement could influence the economic decision of users taken on the basis of the financial statements. Materiality depends on the size of the item or error judged in the particular circumstances of its omission or misstatement. For example, a large company may consider amounts below £1m immatierial (i.e. not material) whereas the owner of a small retail outlet may set a much lower materiality threshold, e.g. £100.