material

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Material

1. Describing information that is or may be relevant for a firm's operations. For example, if a VCR company is experiencing a dearth of demand because most of its potential customers are buying DVD players, this is material information that will likely need to be disclosed to shareholders. See also: Immaterial.

2. Raw substances that a company uses to make its product. For example, an oil refinery's material is crude oil, which it makes into refined oil.

material

Of sufficient importance or relevance as to have possible significant influence on an outcome. For example, the possibility that a firm might lose its right to operate a number of television stations because competitors have filed with the Federal Communications Commission for those licenses would be a material fact in preparing the firm's financial statements. Compare immaterial.
References in periodicals archive ?
During the tax year, the taxpayer performed more than 750 hours of services in real property trades or businesses in which he or she materially participates.
The law provides that a taxpayer, to be materially participating, must be involved on a "regular, continuous, and substantial" basis.
The cost of incidental repairs which neither materially add to the value of the property nor appreciably prolong its life, but keep it in an ordinary efficient operating condition may be deducted as an expense.
These requirements could be a problem for a business in which an owner retires more than 3 years before death and no family member takes over to materially participate during that time; or when a deceased owner's children are too young to materially participate in the business within the 10-year period; or when, for legitimate business reasons, a family decides to give management responsibility to nonfamily employees.
469(c)(7)(B) defines a real estate professional as a taxpayer who (1) spends more than 750 hours and (2) performs more than one-half of his or her personal services during the tax year in real property trades or businesses in which he or she materially participates.
A taxpayer participates materially in an activity if the participation is regular, continuous and substantial, as shown by meeting one of seven tests, most of which focus on the number of hours devoted to the activity.
The Service concluded that the heavy maintenance expenses were currently deductible, because they did not involve replacements, alterations, improvements or additions to the aircraft that appreciably prolonged its useful life, materially increased its value or adapted it to a new or different use.
In its most important application, paragraph 30 requires an auditor to consider whether current-period reported income is materially misstated by the combined effects of originations of current-period misstatements and reversals of prior-period misstatements.
162-4 provides that the "cost of incidental repairs which neither materially add to the value of the property nor appreciably prolong its life, but keep it in an ordinarily efficient operating condition, may be deducted as an expense.
469(c) specifies that a passive activity is any activity that involves the conduct of any trade or business and in which the taxpayer does not materially participate.
Much of the same work and modifications made in Situations 1 and 2 were also made in Situation 3, along with substantial replacement and refurbishment of major components and systems (which materially increased the airframe's value and substantially prolonged its useful life).
These estimates could differ materially from the Company's actual results if the information on which the estimates were based ultimately proves to be incorrect or incomplete.