FEE comments on IASB’s exposure draft ‘IFRS Practice Statement Application of Materiality to Financial statements

The International Accounting Standards Board (IASB)’s Disclosure Initiative project explores how disclosures in the International Financial Reporting Standards (IFRS) financial reporting can be improved. The initiative comes as a follow-up on the discussion forum on disclosure in financial reporting.

The Federation supports the IASB’s step-by-step approach for the Disclosure Initiative and its current project to provide guidance to management to apply the concept of materiality when preparing general purpose financial statements, in accordance with IFRS requirements. We also underpin the IASB’s decision to issue the document as a Practice Statement in a non-mandatory form as we believe it will avoid the potential risks of conflicting with national laws and/or legal requirements.

Related document:
Comment letter to IASB
Comment letter to EFRAG

Related files:
IASB’s Disclosure initiative
Comment letter on IASB Exposure Draft: Disclosure Initiative – Proposed Amendments to IAS 1