Making Materiality Judgements - Phase 1

The Board approved the Final Pronouncement, Definition of Material (Amendments to IPSAS 1, IPSAS 3, and the Conceptual Framework), enhancing the clarity and consistent application of materiality in IPSAS Standards. The amendments to IPSAS Standards are effective January 1, 2027, and amendments to the Conceptual Framework are effective upon publication of the pronouncement.

Due Process Checklist

Project Timeline

The project timeline is depicted below. Please note that these are current targeted milestones/phases and may change as the work in this area progresses.

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Project Overview

Objective

The objective of this project is to:

1. Amend authoritative guidance to achieve a consistent/aligned definition of material between the Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (‘Conceptual Framework’) and IPSAS Standards; and
2. Develop non-authoritative guidance to clarify how to make materiality judgements when preparing GPFR in accordance with IPSAS and IPSASB SRS Standards.

This will ensure that GPFR provide relevant information to users for accountability and decision-making purposes

Why the IPSASB Undertook this Project

The IPSASB proposed adding the Making Materiality Judgements project because feedback received highlighted that some entities have difficulties making materiality judgments and tend to use disclosure requirements in IPSAS^® Accounting Standards as a checklist instead of applying judgement on what information is material and should be included in the general-purpose financial statements (GPFS).

Task Force Members

No Task Force was appointed for this project

Contact

• Agustina Llambi

Published Documents and Support

Documents in this section include:

1. Major documents published by the IPSASB during the lifecycle of the project including: Consultation Papers, Exposure Drafts, issued IPSAS, amendments to IPSAS, and other similar due process documents;
2. Supporting material related to each published document including: snapshots, webinars, and other material; and
3. The project-relevant IPSASB agenda papers.