Which of the following is a necessary factor for information to be considered material?

For information to be considered material, its potential influence on users' decision-making is a fundamental factor. Materiality is primarily assessed based on whether the information could impact the decisions of users, such as investors, creditors, and other stakeholders who rely on financial statements. If information is deemed material, it means that its inclusion or omission could alter the judgment of those making financial or investment decisions.

In contrast, other factors, such as the ability to be quantified in ratios or solely being relevant to the management team, do not inherently contribute to the concept of materiality. Additionally, while understanding reporting requirements is important, it does not directly address the impact the information may have on external users’ decision-making processes, which is the core criterion for materiality in corporate reporting.