EVALUATION OF THE OPTIMUM MATERIALITY LEVEL FOR THE PURPOSES OF THE RUSSIAN ACCOUNTING SYSTEM

Abstract

The article is devoted to the review of modern changes in the interpretation of the term “materiality” used by the system of international financial reporting standards, as well as the analysis of the process structuring to determine this term in practice. It is revealed that the concept of materiality is specific for every company and requires the use of a professional judgment depending on the conditions of business environment. The selection of indicators for assessing materiality is important in calculating the level of materiality. As a result, it has been established that when assessing the level of materiality, it is necessary to take into account not only the quantitative characteristics of the information included in the financial statements, but also its qualitative characteristics. The presence of qualitative characteristics reduces thresholds for quantification. The greater the qualitative factors, the lower will be the quantitative threshold used to determine the level of materiality. The article also shows that the concept of materiality is important for correcting errors in accounting documents and financial statements.