• Register
Return to: Home > News > IASB updates definition of ‘material’

IASB updates definition of ‘material’

The International Accounting Standards Board (IASB) has made amendments to its definition of what is considered material to make it easier for companies to make materiality judgements.

The amendments came as a response to findings that some companies have experienced difficulties using the old definition when judging whether information was material for inclusion in their financial statements.

The IASB said it found that while some stakeholders said substantive changes to the definition were unnecessary, some stakeholders were concerned that the previous definition might encourage entities to disclose immaterial information in their financial statements.

To address this, the IASB changed the definition surrounding information being material if omitting or misstating it ‘could influence’ to ‘could reasonably be expected to influence’.

The IASB has aligned the wording of the definition of material across IFRS Standards and other publications and has clarified the explanation accompanying the definition of material. IASB said it ‘expects the amendments will help entities make better materiality judgements without substantively changing existing requirements’.

Top Content

    Addressing tax challenges and the digitisation of the economy

    As the economy becomes even more globalised through digital sources, the tax systems currently in place need to be scrutinised to examine whether they are still fit for current and emerging business models. Joe Pickard reports on the OECD’s approach to this issue.

    read more

    Primary financial statements: a game changer in reporting?

    International Accounting Standards Board chair Hans Hoogervorst delivered a speech at the Seminario International sobre NIIF y NIF, organised by the Consejo Mexicano de Normas de Información Financiera in Mexico. The Accountant presents the highlights.

    read more

    FASB readies standards for the netflix generation

    The US Financial Accounting Standards Board (FASB) has updated its accounting standard for entertainment, with a specific eye on keeping up to date with how episodic content, such as television programmes, is consumed in the modern world. Jonathan Minter reports.

    read more

    Brexit: why it takes two to tango

    Former TA editor Vincent Huck, now editor of Insurance Asset Risk, looks at why Brexit might unleash geopolitical intrigue in Europe’s accounting standard-setting scene – and why IFRS 17 will be an incredible source of opportunity for firms in the coming years.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.