Definition of

Material
(Amendments to IAS 1 and
IAS 8)
 IASB issues amendments to the definition of material
In October 2018, the International Accounting Standards Board (IASB or the Board)
issued amendments to IAS 1 Presentation of Financial Statements and IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors to align the
definition of ‘material’ across the standards and to clarify certain aspects of the
definition.

The concept of what is and what is not material is a vital part in preparing
financial statements in accordance with IFRS.

Materiality decisions are common in determining the level of precision in

applying accounting policies in practice, determining what disclosures are
most meaningful to users and the level of aggregation of information
throughout financial statements.

2
These amendments are a component of the IASB’s
A project which consists of
DISCLOSURE research and maintenance projects
and aims to address how the
INITIATIVE effectiveness of disclosures in IFRS
financial statements can be
improved.

Is a part of IASB’s

Better Communication in
Financial Reporting

3
 1.
Why change?
 Old Guidance Reason for change

Materiality Old definition is difficult to apply

Amendment clarifies
Defined in IAS 1 & IAS 8

Entities should apply the

definition of materiality when
judging if information should be
included, or amounts adjusted, in
the financial statements

5
 2.
A comparison of the
old definition to the
new
Old definition (IAS 1 & IAS 8) New definition (IAS 1 only)
Omissions or misstatements of items Information is material if omitting,
are material if they could, misstating or obscuring it could
individually or collectively, reasonably be expected to influence
influence the economic decisions the decisions that the primary users
that users make on the basis of the of general purpose financial
financial statements. statements make on the basis of
those financial statements, which
provide financial information about
a specific reporting entity.

7
 3.
Key differences and
additions
 New threshold Primary users of the Obscuring information
financial statements

The IASB replaced the The revised definition The revised definition
threshold ‘could also narrows the adds the concept that
influence’ with ‘could definition of those who obscuring information
reasonably be expected may be affected from may also be relevant in
to influence’ in the the previous term of determining whether
definition of ‘material’. “users” to “primary an element is material
users”, which further to primary users.
narrows the view of
what may be material in
a given circumstance.

9
Examples of circumstances that may result in material information being obscured:

If information regarding a material item, transaction or other event is

scattered throughout the financial statements, or disclosed using a
language that is vague or unclear

If dissimilar items, transactions or other events are inappropriately

aggregated

If similar items are inappropriately disaggregated

If material information is hidden because of immaterial information.

10
 4.
Additional guidance
to the new definition
of materiality
 Information in financial
Materiality depends on nature or statements can be obscured if it
magnitude of information (or has a similar effect for primary
both) users to omitting or misstating
information

Assess whether information is Financials statements are

material on its own or when prepared for economically literate
combined with other information users

12
 5.
Potential practical
impact of the revised
definition of material
 Preparers may be able to
reduce the sheer size of
Immaterial classes of
financial statements by
balances and transactions
more easily justifying that Simplifications and
may be presented

Measurement
certain disclosures are practical application of

Presentation
together in aggregate,
Disclosure

immaterial to users of standards to immaterial

while more meaningful
financial statements. More balances and transactions
and significant items may
meaningful disclosures may be more easily
require distinct and
may need to be re-ordered applied in practice.
separate presentation in
or presented in a more
the financial statements.
prominent manner due to
the additional guidance on
the effects of obscuring
information.

14
 6.
Effective date and
transition
 The amendments to IAS 1
and IAS 8 are required to be
applied for annual periods
beginning on or after 1
January 2020.
The amendments must be
applied prospectively and
earlier application is
permitted.
 7.
Accounting Impact
18
 THIS IS A SLIDE TITLE

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White Black
Is the color of milk and fresh Is the color of ebony and of
snow, the color produced by outer space. It has been the
the combination of all the symbolic color of elegance,
colors of the visible spectrum. solemnity and authority.

21
 IN TWO OR THREE COLUMNS

Yellow Blue Red

Is the color of gold, Is the colour of the Is the color of blood,
butter and ripe clear sky and the deep and because of this it
lemons. In the sea. It is located has historically been
spectrum of visible between violet and associated with
light, yellow is found green on the optical sacrifice, danger and
between green and spectrum. courage.
orange.

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A PICTURE IS WORTH A
THOUSAND WORDS

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Lorem Ipsum

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 AND TABLES TO COMPARE DATA

A B C

Yellow 10 20 7

Blue 30 15 10

Orange 5 24 16

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 LET’S REVIEW SOME CONCEPTS

Yellow Blue Red

Is the color of gold, butter and Is the colour of the clear sky and Is the color of blood, and because
ripe lemons. In the spectrum of the deep sea. It is located of this it has historically been
visible light, yellow is found between violet and green on the associated with sacrifice, danger
between green and orange. optical spectrum. and courage.

Yellow Blue Red

Is the color of gold, butter and Is the colour of the clear sky and Is the color of blood, and because
ripe lemons. In the spectrum of the deep sea. It is located of this it has historically been
visible light, yellow is found between violet and green on the associated with sacrifice, danger
between green and orange. optical spectrum. and courage.

31
4000

3000

2000

1000

You can insert graphs from Excel or Google Sheets

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 THANKS!
Any questions?
You can find me at:
@username & [email protected]

36
 CREDITS

Special thanks to all the people who made and

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▫ Photographs by Unsplash

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This presentation uses the following typographies:

▫ Titles: Montserrat
▫ Body copy: Frank Ruhl Libre
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38
 2.
EXTRA RESOURCES
For Business Plans, Marketing Plans,
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 TIMELINE

Blue is the colour of Black is the color of Yellow is the color of Blue is the colour of
the clear sky and the Red is the colour of ebony and of outer gold, butter and ripe White is the color of the clear sky and the
deep sea danger and courage space lemons milk and fresh snow deep sea

JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC

Yellow is the color of White is the color of Blue is the colour of Red is the colour of Black is the color of Yellow is the
gold, butter and ripe milk and fresh snow the clear sky and the danger and courage ebony and of outer color of gold,
lemons deep sea space butter and ripe
lemons

40
 ROADMAP
Blue is the colour of the
clear sky and the deep Red is the colour of Black is the color of
sea danger and courage ebony and of outer space

1 3 5

2 4 6

Yellow is the color of White is the color of milk Blue is the colour of the
gold, butter and ripe and fresh snow clear sky and the deep
lemons sea

41
 GANTT CHART

Week 1 Week 2

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Task 1

Task 2 ◆

Task 3

Task 4 ◆

Task 5 ◆

Task 6

Task 7

Task 8

42
 SWOT ANALYSIS

STRENGTHS WEAKNESSES
Blue is the colour of the clear Yellow is the color of gold,
sky and the deep sea butter and ripe lemons

Black is the color of ebony White is the color of milk and

and of outer space fresh snow
OPPORTUNITIES THREATS

43
 BUSINESS MODEL CANVAS

Key Partners Key Activities Value Propositions Customer Relationships Customer Segments
Insert your content Insert your content Insert your content Insert your content Insert your content

Key Resources Channels

Insert your content Insert your content

Cost Structure Revenue Streams

Insert your content Insert your content

44
 FUNNEL

AWARENESS Insert your content

DISCOVERY Insert your content

EVALUATION Insert your content

INTENT Insert your content

PURCHASE Insert your content

LOYALTY Insert your content

45
 TEAM PRESENTATION

Imani Jackson Marcos Galán Ixchel Valdía Nils Årud

JOB TITLE JOB TITLE JOB TITLE JOB TITLE
Blue is the colour of the clear Blue is the colour of the clear Blue is the colour of the clear Blue is the colour of the clear
sky and the deep sea sky and the deep sea sky and the deep sea sky and the deep sea

46
 COMPETITOR MATRIX
HIGH VALUE 2

Competito
r
Comp
etitor
Our company

Competitor

HIGH VALUE 1
LOW VALUE 1

Competito
r

Competito
Competitor
r

LOW VALUE 2
47
 WEEKLY PLANNER

SUNDAY MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY SATURDAY

09:00 - 09:45 Task Task Task Task Task Task Task

10:00 - 10:45 Task Task Task Task Task Task Task

11:00 - 11:45 Task Task Task Task Task Task Task

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13:30 - 14:15 Task Task Task Task Task Task Task

14:30 - 15:15 Task Task Task Task Task Task Task

15:30 - 16:15 Task Task Task Task Task Task Task

48
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