As part of its Better Communication project, the IASB published two documents on materiality on 14 September 2017.
Keywords: Mazars, Thailand, IFRS, IAS 1, IAS 8, IASB, Materiality
28 November 2017
The first of these is the second in its series of Practice Statements, and aims to guide preparers in the application of judgment as to the materiality of the matters they report, rather than adhering to a checklist approach. To do so, it brings together the various references to materiality in IFRS standards, and illustrates them with guidance and examples.
The second document is an exposure draft putting forward minor amendments to the definition of materiality in IAS 1 and IAS 8.
These amendments aim to:
- align the definitions in IFRS standards and the definition in the Conceptual Framework by making minor improvements;
- incorporate some of the supporting requirements in IAS 1 into the definition to give them additional prominence; and
- improve the clarity of the explanations accompanying the definition of ‘material’.
Comments should be sent to the IASB before 15 January 2018. The exposure draft can be consulted on the IFRS website.