Skip to content

Authority publishes observations on materiality in financial reporting

Friday, 21st May, 2010: The Authority has today published a paper setting out:


  • IAASA’s observations arising from its engagement with issuers in respect of their materiality judgements; and
  • an overview of the requirements of IFRS with respect to preparers’ assessment of materiality.


The paper can be accessed here.


IAASA’s interactions with issuers to date suggest that preparers’ assessment of materiality can be unduly focused on a narrow range of quantitative considerations, as well as on the needs of a limited range of users. This paper aims to assist preparers with materiality assessments in respect of their financial reports as well as to provide preparers who may become subject to IAASA’s supervisory activities with an understanding of its likely approach.