Simple English definitions for legal terms
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Materiality: Materiality refers to how important something is and how relevant it is to a particular situation. It helps us understand what information is significant and what is not.
Definition: Materiality refers to the importance or relevance of something in a particular matter. It is the extent to which something can affect a decision or outcome.
The examples illustrate how materiality is used in different contexts. In accounting, materiality is used to determine what information should be included in financial statements. In law, materiality is used to determine what evidence is relevant to a case. In risk management, materiality is used to identify the most important risks that need to be addressed.