Disclose ‘Material’ Accounting Policies, Standards Board Says

The International Accounting Standards Board has changed some rules to clarify when accounting policies should be disclosed to make financial statements more useful.

Companies will have to disclose “material” accounting policies, rather than significant ones as present standards stipulate, the IASB said Friday. Businesses have a definite measurement of material value, whereas the term “significant” was undefined.

• The changes, which take effect in 2023, apply to International Accounting Standard 1 Presentation of Financial Statements.
• The board also changed IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors, to clarify how companies distinguish between ...