In this project the IASB is considering how materiality is being applied in practice in IFRS financial statements. The IASB has tentatively decided to provide guidance on the application of materiality, which will take the form of a Practice Statement. The IASB has also tentatively decided to insert a paragraph into IAS 1 Presentation of Financial Statements that clarifies the key characteristics of materiality.
Next steps: the IASB staff will prepare an outline of the content of a draft Practice Statement for discussion by the IASB in Quarter 1 of 2015. In Quarter 1 of 2015 the IASB staff will also present their proposal for alignment of the definition of materiality and the addition of the new IAS 1 paragraph, which will be included in the Principles of Disclosure Discussion Paper.
For more information, visit the Materiality project page.