MATERIALITY Definition

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MATERIALITY is the importance of information or an event that influences a companys price of stock.

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EDGAR is Electronic Data Gathering, Analysis, and Retrieval. EDGAR is an electronic system developed by the Securities and Exchange Commission (SEC). EDGAR permits companies to electronically file documents required for securities offerings and ongoing disclosure obligations with the SEC. EDGAR became fully operational mid-1995.

POOLING-OF-INTERESTS, in the US, is the method of accounting used in a business combination in which the acquiring company has issued voting common stock in exchange for voting common stock of the acquired company. The features of the method are that the acquired companys net assets are brought forward at book value, retained earnings and paid-in capital are brought forward, the net income is recognized for the full financial year regardless of the date of acquisition, and the expenses of pooling are immediately charged against earnings. In order to use the method there are a number of criteria to be met concerning the prior independence of the companies and the nature and timing of the acquisition. See POOLING OF INTEREST METHOD.

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