Within IFRS 18 there is a reminder of what is meant by material. Information is material if omitting, misstating or obscuring it could impact on the decisions made by users of the financial statements. There is of course a large element of judgement involved here, judgement that must be exercised judiciously. Taking into account the need to avoid obscuring information it is important to pay attention to the labelling of line items, totals and sub-totals. Failing to do so and obscuring the true situation via misleading labels can potentially mislead readers of the financial statements.
This in turn inhibits effective transparency, one of those qualities which some entities might understand very well in theory but find it more difficult to apply in practice. Information is material if omitting, misstating or obscuring it could impact on the decisions made by users of the financial statements.
IFRS 18 | AGGREGATION AND DISAGGREGATION OF KEY NUMBERS
15
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