FRC Lab calls for participants for a new project on materiality

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21 Oct, 2022

The Financial Reporting Council Lab (FRC Lab) is inviting companies, investors and other interested parties to participate in a new project looking at how companies develop, assess and use materiality and to consider how enhancements to disclosure about materiality processes might assist investors.

The scope of the project, which is expected to cover both financial and non-financial reporting, will be determined in conjunction with participants but may cover topics such as:

  • what factors and stakeholders companies consider when deciding what to report;
  • when and how regularly companies think about materiality;
  • how companies use their materiality assessments to determine what is included or excluded in their corporate reporting;
  • how companies think about materiality for internal reporting vs external reporting;
  • how companies think about materiality for non-financial vs financial information;
  • how companies consider different concepts of materiality, for example, 'traditional' materiality vs impact materiality;
  • how technological advances in reporting and data consumption may affect materiality;
  • how companies' views on materiality may differ from auditors'; and
  • what investors want to understand on materiality, including on companies' materiality assessment processes.

Further information is available on the FRC website.

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