Reasonable explanation via ChatGPT. My first job required an understanding and application.

"In accounting, materiality refers to the significance of financial information or errors within financial statements. An item is considered "material" if its omission or misstatement could influence the economic decisions of users relying on the financial reports. Materiality is a threshold concept, meaning that only information or discrepancies that meet a certain level of significance are deemed necessary to disclose or correct. This threshold is typically assessed based on the size (quantitative) and nature (qualitative) of the item in relation to the company’s overall financial condition, and it varies depending on the context and industry.

In practice, materiality ensures that financial reporting focuses on details that genuinely impact stakeholders' understanding, enabling decision-making that accurately reflects the company’s financial health and performance."