Materiality: — n
1. the state or quality of being physical or material
2. substance; matter
Materiality is a central and core concept to accountants. It is also fraught with contradiction and questions about how best to manage it. In the 2013-Spring edition of the FMI*IGF I have provided a model to better understand what is Materiality and how organizations can manage it.
A copy of the article is available here: 2013 FMI Journal (Potter). For those who want more information, please click on my ‘Director’s Cut – Materiality’. It provides a more detailed version. Also available (see below) is a copy of the model and a sample of a Materiality log.
Please let me know what you think about the model. Have you adopted it; is it overkill, does the framework help you understand materiality? Please, comment away!