Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 44 - No. 2)
What does the 'Materiality' principle state?
Only significant information needs to be disclosed in the financial statements.
All information must be disclosed in the financial statements.
The financial statements must be prepared in a timely manner.
Financial statements must be audited.
Explanation
The materiality principle states that only information that is important enough to influence the decisions of users of the financial statements needs to be disclosed.
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