What is Material in Accounting?

Information is considered to be material when its absence would have an effect on the decisions of the users of financial statements. Items are considered to be material when they have an excessive impact on reported profits, or on individual line items within the financial statements. The concept usually applies to a reporting entity’s income statement, but it can also apply to its balance sheet or statement of cash flows.

What is Material in Materials Management?

Material also refers to the raw stock from which finished goods are made. Examples of material are raw materials, components, sub-components, and production supplies. In essence, anything consumed during the production process can be classified as material.

Material Misstatement

Material Participation

Material Weakness

Materiality