Disclosure initiative — Materiality - IASB

Date recorded:

At its meeting on July 18, 2017, the IASB discussed whether to confirm the guidance on covenants in the IFRS Practice Statement Making Materiality Judgements (the draft Practice Statement). The Board tentatively decided: (i) to retain in the final Practice Statement the guidance about how to assess the materiality of information related to covenants; (ii) to remove from the final Practice Statement the guidance about the impact of covenants on materiality judgements about other information; and (iii) to state in the final Practice Statement that information about a covenant is not material if the likelihood of a breach of covenant is remote.

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