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!

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