Materiality In IFRS: It's On

Several major new IFRS standards have become effective recently or will do so soon and, as is the case for every new standard, these will mean changes and new requirements not only for accounting treatments but also for disclosures. Altogether, there will undoubtedly be a lot of additional work for both financial statement preparers and their auditors.

Therefore, it is no surprise that—now more than ever—the central area of interest regarding these new IFRS standards is materiality. Indeed, materiality is usually responsible for the disputes that emerge between financial statement preparers, auditors, and regulators. In this article, we'll aim to shed some light on materiality and the rules surrounding it.