The Financial Reporting Council (FRC) Lab has produced a series of articles to help
companies assess materiality in the context of corporate reporting.
The articles explore how to apply materiality to create better,
rather than more, reporting.
The Lab acknowledges that materiality is a subjective matter and
that it will be up to individual boards to determine whether or not
something is material for the purposes of complying with their
companies' legal and regulatory obligations and reporting to
their investors. The Lab nonetheless believes that there are common
elements which can be applied when determining materiality,
including:
- thinking about the needs of investors and their
decision-making, on the basis that a better understanding of these
will help frame whether a disclosure is material or not; and
