United States

Draft guidance for applying the concept of materiality


The International Accounting Standards Board recently published a draft IFRS Practice Statement, Application of Materiality to Financial Statements, which provides guidance regarding the following:

  • Characteristics of materiality
  • How to apply the concept of materiality when making decisions about presenting and disclosing information in the financial statements
  • How to assess whether omissions and misstatements of information are material to the financial statements

The draft Practice Statement is available for comment until February 26, 2015.