Materiality
Materiality is an accounting principle that determines whether an amount is significant enough to influence decision-making. If information could affect the judgment of a reasonable user, it is considered material. Immateriel errors or omissions can be ignored, while material ones must be disclosed and corrected promptly in reports.
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Merger Accounting
Merger accounting refers to how the books are consolidated when two companies combine. Depending on the type of merger, acquisition,…
Money Measurement Concept
This accounting concept states that only transactions measurable in monetary terms are recorded in the books. Non-quantifiable events like employee…
Modified Accrual Accounting
Modified accrual accounting blends elements of cash and accrual methods. Commonly used in government and nonprofit entities, it recognizes revenues…
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