EFRAG comment letter and feedback statement on the materiality exposure draft
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.
