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Deloitte comment letter on the IASB's proposed definition of material

Published on: Dec 02, 2017

We have responded to the IASB's exposure draft ED/2017/6, Definition of Material (Proposed amendments to IAS 1 and IAS 8) that was published in September 2017.

While we agree that there is merit to defining 'material' so it is consistent in the revised Conceptual Framework and the standards it shapes, we urge the IASB to consider adjustments before the exposure draft is finalized. These adjustments include the following:

  • Address the inconsistency in how the term 'materiality' is used in different ways within IFRSs.
  • Simplify the definition and make it clearer.
  • Remove duplication of the definition in IAS 8.
  • Simplify amendments to other Standards that use similar wording.
  • Revise two IASB decisions that are explained in the proposed Basis for Conclusions.

We feel that these items can be easily remedied, without undermining the objective of the proposal.

This comment letter was released by our Global firm.


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