In its quest to improve financial statement disclosures, the Financial Accounting Standards Board is taking a crack at better defining materiality — or at least assuring any existing guidance doesn’t conflict with other legal concepts of materiality.
FASB has issued for public comment two exposure drafts to address the application of the concept of materiality in disclosures. The board developed both proposals as it pursues a larger effort to improve its own guidance and guidance to companies around disclosures.
