The Staff member went through the changes comparing to the previous draft of the paper:

• simplify the description of the objective of primary financial statements;
• include a discussion of the advantages and disadvantages of aggregation;
• simplify and focus the discussion of the relationship between primary financial statements; the term ‘cohesiveness’ has been removed to avoid confusion with the cohesiveness principles proposed in the Financial Statement Presentation project;
• clarify what types of ‘forward-looking’ and risk information should be included in the financial statements; and
• remove some discussion on faithful representation and replace it with a discussion about communication principles.

The main discussion concerned the materiality concept in the presentation and disclosure chapter of the Conceptual Framework.

One Board member believed that the discussion of materiality (in paragraph 48) was one-sided, i.e. do not provide information if it is too costly. However, there might be instances when the information is so vital that the cost should not be a consideration.

Another Board member believed that materiality should be discussed in more detail. For example, the fact that an item was material in the balance sheet did not automatically mean that all disclosure requirements were material / relevant as well.

The Staff member explained that the DP was aimed at the IASB and not at the preparers; nevertheless, there was a concern from several Board members that materiality needed to be explained better.

Another discussion was around cohesiveness and whether the principle should be moved back in.

A couple of Board members wondered whether the section on Communication Principles should say anything about digital communications.

The Staff will revise the paper based on the feedback from the discussion.