QUALITATIVE CRITERIA FOR DETERMINING MATERIALITY IN FINANCIAL STATEMENTS

The conducted research has established that the principle of materiality plays a key role in ensuring the reliability of accounting (financial) statements. An incorrectly defined or formally applied level of materiality may lead to a distortion of reporting data, a decrease in the transparency of financial information and a loss of trust on the part of users. Measures have been developed to improve accounting policies, prevent errors in reporting, and strengthen the internal control system. It has been substantiated that in order to increase the reliability of reporting, commercial organizations need to consolidate in the accounting policy the procedure for determining the level of materiality, provide for mechanisms for regular revision and adaptation of materiality indicators depending on the financial condition of the enterprise, and implement error assessment procedures taking into account both the quantitative and qualitative nature of deviations.