On the Real Effects of Changes in Definitions of Materiality
A definition of materiality offers preparers and users of financial statements guidance about what are unimportant (immaterial) misrepresentations and what are important (material) misrepresentations. The U.S. Supreme Court defines information as material if there is “a substantial likelihood that the disclosure of the omitted fact would have been viewed by the reasonable investor as having significantly altered the ‘total mix’… Read More »