The concept of materiality is pervasive throughout the business, financial, legal and regulatory communities of the world and accordingly there are many definitions and measures of materiality. While each serves different purposes and operates in different contexts, all are definitionally aligned in that material information is any information which is capable of making a difference to the evaluation and analysis at hand.
Materiality is both a general and a legal concept. For purposes of this Statement of Common Principles of Materiality, its focus is on the materiality principles underlying the Corporate Reporting Dialogue participants’ standards setting activities and on the reporting by business enterprises in compliance with those standards. Legal authorities such as regulators may require or enforce different definitions, which may be more or less restrictive.
Download the statement here.