Materiality: when a figure is big enough to matter
An item is material if it could change a reader's decision. Judge it by size and by what the item is.
Task 1What material means2 questions
An item is material if leaving it out, or getting it wrong, could change a decision made by someone reading the accounts.
There is no fixed figure. It depends on the size of the business and on what the item is.
Brindle Joinery has sales of £400,000 a year and a profit of £40,000.
Task 2Small purchases: materiality saves work3 questions
Task 3Size and nature4 questions