Materiality refers to the significance of information in the context of decision-making. In finance and accounting, it helps determine what information is important enough to influence the decisions of users, such as investors or stakeholders. If an item is considered material, it must be disclosed in financial statements to provide a clear picture of a company's performance. In legal contexts, materiality can relate to evidence that is relevant and significant to a case. For example, in a court trial, material evidence can affect the outcome by supporting or contradicting a claim. Understanding materiality ensures that only pertinent information is highlighted, aiding in transparency and informed decision-making.