Material Immaterial Accounting Concepts - GAAP
Here we study about Material Immaterial Accounting Concepts that are the principles of Generally Accepted Accounting Principles (GAAP). Previously, we have discussed about Materiality Concept Accounting Example . If you do not read this article, then kindly read it so that you can better learn this topic. Materiality is the concept which states that information that can influence the economic decisions of the users of financial statements. An Immaterial is the concept in which an item is insignificant to affect the economic decisions of the users of financial statements of the company businesses. The question about as to whether an information or item is material or immaterial depends on the nature of the item or information and to include it into your financial statement section “Notes to the Accounts”. Following are the Factors upon which Materiality may depend: Ø If the treatment of an item changes the trends or turns the...