On 18 July 2018, the Board added a project to its agenda to develop guidance and examples to help entities apply materiality judgements to accounting policy disclosure. The Board added this project in response to feedback on the Disclosure Initiative—Principles of Disclosure Discussion Paper.
The Board amended paragraphs 117–122 of IAS 1 Presentation of Financial Statements to require entities to disclose their material accounting policy information rather than their significant accounting policies. To support this amendment the Board also amended IFRS Practice Statement 2 Making Materiality Judgements (Materiality Practice Statement) to explain and demonstrate the application of the ‘four-step materiality process’ to accounting policy disclosures.
The Board issued the amendments on 12 February 2021.
International Accounting Standards Board December 2020