IPSASB: ED 93 – Definition of Material

IPSASB: ED 93 – Definition of Material

• 06 June 2025
• Financial Reporting
• South African Accounting Academy

Summary:

The International Public Sector Accounting Standards Board (IPSASB) has issued ED 93: Definition of Material (Amendments to IPSAS 1, IPSAS 3, and the Conceptual Framework).

Article:

The objective of IPSAS ED 93 is to align the definition of material between the Conceptual Framework and IPSAS Accounting Standards. IPSAS ED 93 proposes to clarify that an entity is required to consider the information needs of primary users instead of other users of general purpose financial reports when applying the concept of materiality. To achieve this, IPSASB proposes to add ‘primary’ before ‘users’ to the concept of materiality, described in paragraph 3.32 in the Conceptual Framework.

Comments are due on 14 July 2025.

The 4-page At a Glance document can be accessed at https://ifacweb.blob.core.windows.net/publicfiles/2025-05/AAG-IPSAS-ED-93_0.pdf

Click here to download the 16-page Exposure Draft:

https://ifacweb.blob.core.windows.net/publicfiles/2025-05/IPSAS-ED-93.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• It is important to stay informed on publications issued by the regulators and standard-setters, e.g. IFAC & IPSASB.
• This ED 93 proposes to clarify that an entity is required to consider the information needs of primary users instead of other users of general purpose financial reports when applying the concept of materiality.

Relevance to Your Clients:

• It is important to stay informed on publications issued by the regulators and standard-setters, e.g. IFAC & IPSASB.
• This ED 93 proposes to clarify that an entity is required to consider the information needs of primary users instead of other users of general purpose financial reports when applying the concept of materiality.

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