The Exposure Draft, Definition of Material, proposes minor amendments to IAS 1 and IAS 8 to clarify the definition and improve understanding of the current requirements.

The proposed amendments aim to:

• amend the wording of the definition in IFRS standards and the definition in the Conceptual Framework for Financial Reporting so that it is consistent across both documents, as the wording is currently ‘similar but not identical’ - and make some minor improvements to that wording;
• incorporate some of the existing supporting requirements in IAS 1 into the definition to give them additional prominence; and
• improve the clarity of the explanation accompanying the definition of material.

As the proposed amendments are based on existing guidance, the IASB does not expect them to significantly affect how materiality judgments are made in practice or to significantly affect entities’ financial statements.

However, the standard setter has confirmed that the outcome of this consultation will be taken into account if any changes are made to the definition of material in IAS 1 or IAS 8, and also this will be reflected in the Conceptual Framework, when it is finally published.

The closing date for comment is 15 January 2018.

Exposure Draft ED/2017/6 Definition of Material Proposed amendments to IAS 1 and IAS 8