If accountants had their way, everything would be immaterial.
“50% of gross assets? Immaterial!”
“Oh, it’s only a few hundred million off? Totally immaterial.”
Material, roughly speaking, means that an omission or misstatement of the data could potentially influence the decision of an end user. To say something is immaterial is to say that it is not material and would likely not matter to end users (e.g. banks, investors, government, etc).
Accountants, in public or industry, are grateful for this concept of declaring things immaterial. To individuals such as you and I, $10,000 misplaced would be A VERY BIG DEAL. However to accountants, it is trivial to wave away problems with large dollar amounts as immaterial and move on with their lives.
Does a company that has billions in assets really care if $10,000 is missing? Probably not. This is one of the benefits of accounting where accountants, who would be devastated if $20 was missing from their own pockets, absolutely could not care less if $20M won’t reconcile at a large corporation.
It’s not necessary to go into detail how accountants calculate materiality in this post, but just be aware that an accountant’s quality of life is directly correlated to the threshold of which things are considered immaterial.