In this project the IASB is considering how materiality is 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. In April 2015 the IASB tentatively decided that the Principles of Disclosure Discussion Paper should include a discussion on whether the definition of materiality should be changed and whether IAS 1 Presentation of Financial Statements should include additional guidance that clarifies the key characteristics of materiality.
Current step: In October 2015 the IASB published on an Exposure Draft: IFRS Practice Statement Application of Materiality to Financial Statements to obtain feedback from parties with an interest in financial reporting. The comment deadline is 26 February 2016.
Next steps: The IASB will consider the comments received on the Draft Practice Statement and then develop the final guidance. The aim is to publish the finalised Practice Statement in 2016.
For more information, visit the Materiality project page.