BC20 The Standard states that accounting policies specified by IFRSs need not be applied when the effect of applying them is immaterial. It also states that financial statements do not comply with IFRSs if they contain material errors, and that material prior period errors are to be corrected in the first set of financial statements authorised for issue after their discovery. The Standard includes a definition of material omissions or misstatements, which is based on the description of materiality in IAS 1 Presentation of Financial Statements (as issued in 1997) and in the Framework. [When it issued IFRS 18, the IASB carried over the definition of ‘material’ from IAS 1 Presentation of Financial Statements to IFRS 18.]
BC21 The formerPreface to Statements of International Accounting Standards stated that International Accounting Standards were not intended to apply to immaterial items. There is no equivalent statement in the Preface to International Financial Reporting Standards. [P
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