This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

EFRAG comment letter and feedback statement on the materiality exposure draft

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

10 Mar 2016

The European Financial Reporting Advisory Group (EFRAG) has issued its final comment letter on the International Accounting Standard Boards (IASB’s) exposure draft ED/2015/8 'IFRS Practice Statement - Application of Materiality to Financial Statements'. EFRAG has also issued the related feedback statement summarising the main comments received from constituents invited to respond to its draft comment letter.

In its comment letter on the proposed guidance, EFRAG expresses the view that the proposed guidance could be helpful, in particular in the context of disclosures, in order to provide a common ground for applying judgement in deciding which information is relevant for users and fostering thinking on how materiality is applied.

However, EFRAG also believes that the practice statement should assist in promoting a common understanding of the role and application of materiality in IFRSs, beyond being used solely by preparers.  EFRAG believes that this should be clarified in the objectives of the guidance.

Additionally, EFRAG considers that the draft practice statement should be drafted in a more concise and practical way and focus on areas where it is most difficult to exercise judgement on the application of materiality.

The press release, comment letter and feedback statement are available on the EFRAG website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.