logo
IASB Exposure Draft ED/2017/6 Definition of Material (Proposed amendments to IAS 1 and IAS 8).

The definition of material has been discussed by the IASB in several projects, including the Conceptual Framework project, the Principle of Disclosure project and the Materiality Practice Statement project. The IASB has discussed a number of similar, but not identical, versions of definition in these projects. To avoid confusion about the definition of material, the IASB is publishing this Exposure Draft to refine the definition of material and clarify its application to:

·    align the wording of the definition in IFRS Standards and the definition in the Conceptual Framework for Financial Reporting (the Conceptual Framework)—the wording is currently similar but not identical—and make some minor improvements to that wording;

·         incorporate some of the existing supporting requirements in IAS 1 Presentation of Financial Statements into the definition to give them additional prominence; and

·           improve the clarity of the explanation accompanying the definition of material.  

The IASB expects that the proposed amendments in this Exposure Draft will improve understanding of the existing requirements. However, because these proposed amendments are based on existing guidance, the IASB does not expect them to significantly affect how materiality judgements are made in practice or to significantly affect entities’ financial statements.

To download the Exposure Draft, click here

Invitation to comment

The Exposure Draft is open for comment until 15 December 2017.

You may provide your comments online or email us at technical@masb.org.my.