Institute of Chartered Accountants of Pakistan has issued a useful information titled as IFRS News – IASB issues Definition of Material (Amendments to IAS 1 and IAS 8).
Through this particular explanation, he International Accounting Standards Board (IASB) has issued amended definition of ‘Material’, reproduced below:
“Information is material if omitting, misstating or obscuring it could reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements, which provide financial information about a specific reporting entity.”
The amended definition (contained in IAS 1 Presentation of Financial Statements) is in response to findings that some preparers of financial statements experienced difficulties using the old definition when judging whether information was material for inclusion in the financial statements. Further, the definition of material in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors has been replaced with a reference to IAS 1. The above amendments to IAS 1 and IAS 8 are to be applied prospectively, effective from January 1, 2020 (However, companies can decide to apply them earlier).
The amended definition and other details can be found on the link below: