Materiality

SEC reporting requirements

Generally accepted accounting principles

The needs of financial statement users

Both are enhancing qualitative characteristics of useful financial information

Both are fundamental qualitative characteristics of useful financial information

Both are characteristics of relevance

Both are characteristics of faithful representation

Excluded completely from the financial statements

Included in the expense category in the determination of income

Separately stated from determining income

Excluded from determining income but included in retained earnings

A decrease in an asset from primary operations

A decrease in a liability from primary operations

An increase in a liability from ancillary transactions

An increase in an asset from ancillary transactions