Global Standards for the world economy

Tuesday 20 August 2019

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IASB publishes draft guidance on applying the concept of materiality

 28 October 2015


The International Accounting Standards Board (IASB) today published draft guidance to help company management determine whether information is material. The guidance is part of the IASB’s wider initiative to improve disclosures.

The draft guidance, in the form of a draft Practice Statement, has been developed in response to concerns that management are often uncertain about how to apply the concept of materiality and therefore use the disclosure requirements in the Standards as a checklist.

This can result in excessive disclosure of immaterial information that can obscure useful information and also make financial statements cluttered and less understandable. It can also lead to useful information being left out.

Access the Draft Practice Statement Application of Materiality to Financial Statements here.


Related information

  • Access the Draft Practice Statement Application of Materiality to Financial Statements here
  • Submit your comment letter here
  • A ‘Snapshot’ providing a high-level summary of the Draft Practice Statement Application of Materiality to Financial Statements can be found here (updated 29 October 2015)
  • Read the press release about the release [PDF]