everything material should be included in financial statment?
Concept of materiality per FASB: The omission or misstatement of an item in a financial report is material if, in the light of surrounding circumstances, the magnitude of the item is such that it is probable that the judgment of a reasonable person relying upon the report would have been changed or influenced by the inclusion or correction of the item. i.e. if information in a F/S were misstated or omitted it would affect the judgment of a reasonable creditor or investor. $1K misstated/omitted $100M balance—who cares (immaterial) $10M misstated/omitted 100M balance—big deal, would affect creditor/investor judgment of financial position (material) the tricky part is the gray area in between the two, can be very subjective