02/10/2017 - EFRAG's draft comment letter on the IASB's Exposure Draft ED/2017/6 Definition of Material - Proposed amendments to IAS 1 and IAS 8
EFRAG has published its draft comment letter in response to the ED/2017/6 Definition of Material and seeks constituents' views on the proposal. Comments on the draft comment letter and inputs in it are requested by 5 January 2018.
The IASB published the Exposure Draft ED/2017/6 Definition of Material - Proposed Amendments to IAS 1 and IAS 8, on 14 September 2017, with comments due by 15 January 2018.
EFRAG has issued its draft comment letter where it supports the objective to remove the existing inconsistencies in the definition of “material” in the Conceptual Framework for Financial Reporting and in IFRS Standards. EFRAG also supports replacing the threshold ‘could influence’ with ‘could reasonably be expected to influence’.
However, EFRAG suggests removing the references to ‘omitting’, ‘misstating’ and ‘obscuring’ from the definition of ‘material’ and defining material information more simply and directly as information that can reasonably be expected to, individually or collectively, influence the economic decisions that the primary users of financial statements make.
EFRAG requests comments on its draft comment letter by 5 January 2018.
EFRAG's draft comment letter can be accessed using the following link .