Materiality
In one sentenceInformation is material if omitting it or misstating it could influence the decision of someone reading the financial statements; this is judged by the size and nature of the item.
Simply put
Not every item deserves the same treatment. A wastebasket costing 150 SAR that lasts for years is recorded directly as an expense, because depreciating it would not change anyone's decision.
Materiality is relative: a small amount in a large company may be material in a small business, and some items are material by nature even if the amount is small, such as the owners' dealings with the business.
Example
An error of 2,000 SAR in classifying an expense may not matter in a business with sales of tens of millions, but it changes the picture in a small store whose net profit is 10,000 SAR.