Economic units face several challenges, primarily in the varying determination of materiality by financial report preparers and its impact on the accuracy of financial reporting. Due to personal estimations and lack of accounting training, materiality may be used as a tool for manipulating financial reports, thereby jeopardizing decisions based on these reports. In response to the scarcity of research on materiality in accounting, this study investigates the impact of materiality on the quality of financial reporting before and after the application of International Financial Reporting Standards (IFRS) in the local environment. This study is designed to test the applicability of materiality in the local environment. In a sample of private Iraqi banks, the researchers concluded that a sufficient understanding of materiality helps financial statement preparers reduce informational overload, thereby improving the quality of financial statements. The researchers recommended supporting academic studies and spreading scientific and professional awareness of the concept of materiality, as well as providing adequate guidance to report preparers on how to identify material information for users and stakeholders.