Respuesta :
The difference between materiality and cost -benefit while preparing financial statement are given below-
According to the cost benefit principle, the cost of providing information through financial statements should not outweigh its utility to readers. The main point is that some financial data is prohibitively expensive to produce. whereas the significance of information in a company's financial statements is referred to as materiality. If a transaction or business decision is significant enough to warrant reporting to investors or other users of financial statements, it is considered "material" to the business and cannot be omitted.
A cost-benefit principle includes measurable financial metrics such as revenue earned, or costs saved as a result of a project decision, whereas the concept of materiality allows for the provision of ignoring other accounting principles if doing so has no impact on the financial statements of the business in question.
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