The International Integrated Reporting Council and the International Federation of Accountants has released the publication, Materiality in Integrated Reporting which offers guidance for the preparation of integrated reports. It explains materiality and the corresponding materiality determination process, in the context of Integrated Reporting. It also outlines expectations for materiality-related disclosures.
The interpretation of materiality varies across report forms due to differences in audience, purpose and scope. In Integrated Reporting, a matter is material if it could substantively affect the organization’s ability to create value in the short, medium and long term. The process of determining materiality is entity specific and based on industry and other factors, as well as multi-stakeholder perspectives.
The paper looks at how to prepare content, establish parameters for the materiality determination process, how to embed the process into management and the extent to which integrated thinking underpins materiality.
Thank you to the Review Committee in Korea for this translation.