Deloitte has responded to the IASB's exposure draft ED/2017/6 'Definition of Material (Proposed amendments to IAS 1 and IAS 8)' that was published in September 2017.
While Deloitte agrees that there is merit to defining 'material' so it is consistent in the revised Conceptual Framework and the standards it shapes, Deloitte urges the IASB to consider adjustments before the ED is finalised. These adjustments include the following:
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Address the inconsistency in how the term 'materiality' is used in different ways within IFRSs.
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Simplify the definition and make it clearer.
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Remove duplication of the definition in IAS 8.
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Simplify amendments to other Standards that use similar wording.
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Revise two IASB decisions that are explained in the proposed Basis for Conclusions.
Deloitte feels that these items can be easily remedied, without undermining the objective of the proposal.
Full comment letter
© Deloitte LLP
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