Status: Draft -- Not PublishedWill be live at 02/01/2016 00:00
IIF SAG - Application of Materiality to Financial Statements
The IIF Senior Accounting Group (SAG), submitted its response letter on the IASB's Exposure Draft: Application of Materiality to Financial Statements. In its comments, the SAG expressed appreciation for the IASB's initiative to address concerns observed around the lack of understanding of some stakeholders on how to apply the concept of materiality in the financial statements; however, it is noted that the concept of materiality is well understood by its members and therefore the proposed Practice Statement would not provide significant additional information compared to current practices. Nevertheless, the SAG found this initiative valuable for several reasons such as confirming that not everything needs to be disclosed even though it is described as a minimum in a specific requirement and the fact that it encourages use of judgment when making decisions to disclose. The SAG also highlighted some issues regarding the illustrative examples proposed in the document.'