Thinking allowed

Materiality; judgements around financial report disclosure

Our new series, ‘Thinking allowed’, focuses on financial reporting matters. This series will be edited by Alan Teixeira, the recently appointed Global Director of IFRS Research and former Senior Technical Director of the IASB.

Our first paper within Thinking allowed provides insights and thought provoking commentary, focusing on materiality. Those responsible for preparing, or approving for release, a general purpose financial report need to make judgements about what information to include in the report and how to present it. 

This paper is designed to help you think about matters such as:

  • how to identify who the primary users of your report are;
  • how to identify what information those users want, or expect to be, included in the report; 
  • what factors should be considered in deciding whether information is material, including what qualitative factors can make small amounts material;
  • how to reduce the amount of immaterial information in your report, ensuring that material information is not obscured.

This edition also includes 10 questions you should ask yourself, which are essential for any audit committee to consider. As a result, this publication is particularly relevant to preparers, directors, CEOs and CFOs.


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