IFRS guidance on making materiality judgements

The IASB have published IFRS Practice Statement 2; Making Materiality Judgements, a non-mandatory document which provides guidance on how to apply judgment when determining whether information is material by illustrating the types of factors that an entity should consider.

The practice statement includes a four-step materiality determination process as well as specific guidance on prior-period information, correction of errors, information about covenants and the application of materiality to interim financial statements.

The full practice statement can be found here.