Which term describes the practice of ignoring minor accounting standards due to less significant impact?

The term that best describes the practice of ignoring minor accounting standards because their impact is considered less significant is materiality. In accounting, materiality refers to the principle that dictates how much importance is assigned to information or an omission in financial reporting. If a particular accounting standard or piece of information does not have a significant effect on the overall financial statements or decisions of users, it may be disregarded. This allows companies to focus their resources on more critical aspects that truly influence financial performance and decision-making.

Materiality is essential for ensuring that financial reports are both useful and manageable, balancing the need for accuracy with the practical considerations of reporting. It guides accountants in determining what is relevant in the context of a financial report, thereby facilitating clearer and more effective communication of a company's financial status.