Global Standards for the world economy

Saturday 11 July 2020

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In December 2016, the Board decided to accelerate its proposed clarifications to the definition of materiality; the Board expects to publish an Exposure Draft in the first half of 2017

 14 December 2016

Definition of materiality

Agenda Paper 11A: Proposed clarifications to the definition of materiality and due process summary

In April 2015, the Board tentatively decided to refine the definition of materiality and clarify its key characteristics (the proposed clarifications) in the Principles of Disclosure Discussion Paper. The Discussion Paper would have also included the rationale for not making substantive changes to the definition of materiality.

At this meeting the Board decided to accelerate the work on the proposed clarifications by publishing them separately in an Exposure Draft. All Board members agreed with this decision.


  1. all Board members confirmed they are satisfied that the Board has completed the necessary due process for issuing an Exposure Draft. Therefore, the Board instructed the staff to begin balloting.
  2. no Board members indicated they would dissent from the decision to issue an Exposure Draft.
  3. all Board members agreed that the comment period for the Exposure Draft should be 120 days.