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Version date: 26 February 2020 - 31 December 2026
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Definition of Material (paragraph 7) (paras. BC13A-BC13T)

Background

BC13A The Board was informed at the Discussion Forum on Financial Reporting Disclosure it hosted in January 2013, [A Feedback Statement summarising the feedback from that forum.] through feedback on the amendments to IAS 1 in the 2014 Exposure Draft Disclosure Initiative, the 2017 Discussion Paper Disclosure Initiative - Principles of Disclosure, and from other sources, that entities experience difficulties in making materiality judgements when preparing financial statements.

BC13B The feedback indicated that difficulties in making materiality judgements are generally behavioural rather than related to the definition of material. That feedback indicated that some entities apply the disclosure requirements in IFRS Standards mechanically, using them as a checklist for disclosures in their financial statements, rather than applying their judgement to determine what information is material. Some entities have said that it is easier to use a checklist approach than to apply judge

Comparing proposed amendment...