What Is The materiality Concept In Accounting?

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humiee n.s Profile
humiee n.s answered
The accountant must not waste time in the elaborate recording of trivial or insignificant items.according to the materiality concept,the accounting treatments of items or transactions would depend on their significance and relative value to the business.
Nayaz nayaz Profile
Nayaz nayaz answered
Only those items that have significant value are recorded.
This concept is also important in deciding whether to capitalise an item as non-current asset or to treat it as an expense in the income statement.

You can learn more on accounting concepts from the following site:
principlesofaccounts.weebly.com

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