# Materiality

> Materiality — Whether a misstatement or omission would likely change the judgment of a reasonable user of the statements — judged on size and nature together, never a fixed percentage.

Source: https://lopifi.com/glossary/materiality
Part of: Lopifi — US GAAP books on autopilot, reviewed by a CPA (https://lopifi.com)

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**What is materiality?** In accounting, materiality means whether a misstatement or omission would likely change the judgment of a reasonable user of the statements — judged on size and nature together, never a fixed percentage.

## Words this system refuses for it

- significance
- the 5% rule

- **Category:** Close
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Rendered by:** [budget-vs-actual](https://lopifi.com/md/components/budget-vs-actual), [materiality-policy](https://lopifi.com/md/components/materiality-policy), [variance-cell](https://lopifi.com/md/components/variance-cell)