The International Public Sector Accounting Standards Board (IPSASB) commenced with the development of guidance on materiality. A phased approach will be followed to develop guidance on making materiality judgements when preparing general-purpose financial reports.

Phase 1 involves a consistency review of the definition of ‘material’ to amend authoritative and non-authoritative guidance across the IPSASB’s financial reporting literature. At its March 2025 meeting, the IPSASB approved an exposure draft to align materiality guidance across the IPSAS literature and clarify that materiality decisions are intended to reflect the needs of the primary users of financial statements.

Phase 2 involves developing non-authoritative guidance aligned with IFRS® Practice Statement 2 Making Materiality Judgments. Phase 3 involves developing guidance on making materiality judgments when preparing sustainability reports in accordance with the IPSASB’s Sustainability Reporting Standards. 

The way forward

As part of the Accounting Standards Board’s ongoing commitment to influence the international standard-setting process, the Board will consult local stakeholders, when deemed necessary, in submitting comment letters to the IPSASB on their Exposure Drafts.

If you are interested in further developments on this project, subscribe to the ASB’s newsletter, or follow the IPSASB’s Materiality project (and other projects) at this link.

Disclaimer

The article has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.