The International Public Sector Accounting Standards Board (IPSASB) has published the IPSAS Exposure Draft (ED) 93 for public comment.  

This draft aims to align the definition of materiality across IPSASB’s financial reporting literature, enhancing the clarity and usefulness of financial reports for entities. 

IPSAS ED 93 proposes aligning the materiality definition between the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities and IPSAS Standards.  

It involves considering the information needs of primary users and aligning the definition in IPSAS 1 with Chapter 3 of the Conceptual Framework. 

The IPSASB emphasises that feedback received will shape the final pronouncement.  

To engage stakeholders, the project will be executed in three phases. Phase one will review the consistency of the materiality definition, which IPSAS ED 93 addresses.  

Phase two will develop non-authoritative guidance aligned with IFRS Practice Statement 2, addressing constituents’ needs for guidance on materiality judgments in financial statements.  

Phase three will focus on materiality in sustainability reporting, following the development of IPSASB SRS ED 1, Climate-related Disclosures. 

IPSASB chair Ian Carruthers said: “Getting the definition of materiality right is critical because it affects what information is presented in public sector financial reports.  

“The clear and consistent definition of material proposed in this ED will not only help entities with its application but will also provide a strong foundation for developing non-authoritative guidance on making materiality judgments in the second phase of this project.” 

Comments on the IPSAS Exposure Draft are due by 14 July 2025.  

In July 2024, the Public Interest Committee and IFAC announced a search committee to select the next IPSASB chair, succeeding Ian Carruthers, for a three-year term starting 1 January 2026.