A proposal under the influence – defining materiality

The IASB has issued an exposure draft Definition of Material, with comments to be received by January 15, 2018, and (in final form) Practice Statement 2 Making Materiality Judgments. The IASB hopes through the practice statement, as the news release puts it, to encourage “companies to apply judgment instead of using IFRS requirements as a…

Materiality in financial statements – I thought the point was to disclose less!

As we discussed here, the IASB has issued for comment an exposure draft of a proposed practice statement Application of Materiality to Financial Statements, with comments to be received by February 26, 2016. Although the document’s primary purpose is to reduce unnecessary disclosures, it also sets out various instances where focusing on materiality might lead…