immaterial

immaterial definition - business

immaterial

Of so little importance or relevance as to have no significant impact on an outcome. For example, a firm may be engaged in a lawsuit involving such an insignificant amount of money that the lawsuit's outcome will not appreciably affect the firm. Thus, the lawsuit and its potential results are immaterial to the preparation of the firm's financial statements. Compare material1.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.