What criteria should accountants consider in determing whether a transaction or an event is material What criteria should accountants consider in determing whether a transaction or an event is material Solution A transaction or an event is material or not is being based on Professional Judgement, It depends on the transaction or event occured , how it would influnce the financial statement,The materiality is depend on the size of transaction or event. So Materiality is depends on the transaction amount, information, impact . It can be decided on the basis of his professional judgement which might differ from one to another. If the accountant feel that the information or transaction has a material effect then he consider it. There is no hard & fast rule regarding measuring of materiality, But accountant may be found guilty if it found negligence in performing their audit work . So he may use professional skill while evaluating the materiality of a transaction and so as to provide a true & fair view.