material effect
[məˈtɪriəl ɪˈfɛkt]
nounpl: material effects
efeito material
1. A significant or substantial consequence or impact that has real, tangible, or important results
The new policy had a material effect on employee productivity.
A nova política teve um efeito material na produtividade dos funcionários.
2. In law and auditing, an effect that would influence the economic decisions of users of financial information
The auditor found a material effect on the financial statements due to the accounting error.
O auditor encontrou um efeito material nas demonstrações financeiras devido ao erro contábil.
3. A practical or concrete outcome that can be measured or observed
The medication had a material effect on reducing inflammation.
O medicamento teve um efeito material na redução da inflamação.
This term is heavily used in American and Brazilian corporate, financial, and legal contexts. In auditing standards (GAAP, IFRS), 'materiality' and 'material effect' are critical concepts for determining whether financial information is significant enough to affect economic decisions. The term reflects the importance of distinguishing between significant and insignificant business impacts.
Related Idioms & Phrases
have a material effect on something
material effect on the bottom line
material effect on operations
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