The objective of general purpose financial reporting is to provide financial information about the reporting entity that is useful to existing and potential investors, lenders and other creditors in making decisions about providing resources to the entity. General purpose financial statements are a type of general purpose financial report.
The aim of this Exposure Draft of the IFRS Practice Statement Application of Materiality to Financial Statements (the ‘[draft] Practice Statement’) is to provide guidance to assist management in applying the concept of materiality to general purpose financial statements prepared in accordance with IFRS. Information is material if omitting or misstating it could influence decisions that users make on the basis of financial information about a specific reporting entity.
The consultation is open for comment until 26 February 2016.