Background Materiality is an important issue in accounting. Materiality is mainly covered in the following areas: 1. The Conceptual Framework for Financial Reporting 2. IAS 1, Presentation of...

Background Materiality is an important issue in accounting. Materiality is mainly covered in the following areas: 1. The Conceptual Framework for Financial Reporting 2. IAS 1, Presentation of Financial Statements 3. IAS 8, Accounting policies, changes in Accounting Estimates and Errors. Interestingly, there are some inconsistencies in how the above three ‘deal’ with materiality. Consequently, there is a current IASB project that specifically looks at materiality. Tasks 1. Identify the coverage of materiality in the Conceptual Framework, IAS 1 and IAS 8. 2. Critically reflect on the current proposed definition of materiality from IASB