New research on materiality
02 Nov 2023
The Australian Accounting Standards Board (AASB) and the UK Financial Reporting Council (FRC) have published research reports on the topic of materiality.
The AASB' research is a response to the IASB's April 2022 call for research on materiality, urging a collaborative approach between academics and standard-setters:
- Research Report 21 Auditors’ Perspectives: The Impacts of IFRS Practice Statement 2 'Making Materiality Judgements' shows that the IFRS Practice Statement 2 is helpful as it clarifies the concept of materiality. However, there is a significant need for enhanced educational programs targeting key stakeholders, including auditors.
- Research Report 22 Making Materiality Judgements – Malaysian Preparers and Auditors’ Perspectives investigates to what extent financial statement preparers and auditors understand and apply the concept of materiality. This research was carried out jointly with the Malaysian Accounting Standards Board (MASB).
The FRC's research looks at how companies can improve their corporate reporting by taking a more focused, strategic approach to assessing materiality. Please click to access Materiality in practice: applying a materiality mindset on the FRC website.
