© D.L. Crumbley
SEC SAB No. 99 Examples
Among the considerations that may well render material a quantitatively small misstatement of a financial statement item are—
Whether the misstatement arises from an item capable of precise measurement or whether it arises from an estimate and, if so, the degree of imprecision inherent in the estimate.
Whether the misstatement masks a change in earnings or other trends.
Whether the misstatement hides a failure to meet analysts’ consensus expectations for the enterprise.
Whether the misstatement concerns a segment or other portion of the registrant’s business that has been identified as playing a significant role in the registrant’s operations or profitability.