EFRAG is consulting on both its assessment of Definition of Material (Amendments to IAS 1 and IAS 8) against the technical criteria in the EU and on its assessment of whether the Amendments are conducive to the European public good.
EFRAG has issued a draft endorsement advice letter and a separate invitation to comment relating to the endorsement for use in the EU of the Amendments.
The objectives of the Amendments are to clarify the definition of material by including guidance that until now has featured elsewhere in IFRS Standards; align the definition used in the Conceptual Framework for Financial Reporting with that in the IFRS Standards themselves; and improve the explanations accompanying the definition.
The Amendments become effective for annual periods beginning on or after 1 January 2020, with earlier application permitted.
EFRAG's overall preliminary assessment is that the Amendments satisfy the criteria for endorsement for use in the EU and therefore recommends their endorsement. EFRAG is seeking comments on all aspects of its analyses supporting its preliminary conclusions.
Comments are requested by 1 February 2019.
Full press release
EFRAG's draft endorsement advice letter
© EFRAG - European Financial Reporting Advisory Group
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