Disclosure initiative — Definition of Materiality – International Accounting Standards Board

Date recorded:

At its meeting on June 20-21, 2018, the International Accounting Standards Board (the Board) tentatively decided that, when developing disclosure objectives and requirements in future, a member of the IFRS Taxonomy team will be assigned in an advisory capacity to each of the IASB's active projects. In addition, the Board tentatively decided:

(i) (a) to confirm the proposed amendment to include the concept of 'obscuring information' in the bold definition of material; and (b) to replace the proposed wording explaining 'obscuring information' in the explanatory paragraphs with a clearer description and examples;

(ii) (a) to confirm the proposed amendment(s): that align terminology in the definition of material with terminology in the Conceptual Framework for Financial Reporting; and (b) that will replace the term 'could influence' with 'could reasonably be expected to influence' in the definition of material;

(iii) to replace the definition of material in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors with a reference to the definition of material and explanatory paragraphs in IAS 1 Presentation of Financial Statements; and (iv) that the effective date of amendments be for annual periods beginning on or after 1 January 2020 with early application permitted.

Review the IASB Update and podcast on the Board's Web site.

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