Material accounting policy information

Learning objectives

• Determine whether accounting policy information is material.L2
• Justify why standardised information must not obscure material information.L2, L3

Normative references

• IAS 1 §117An entity discloses material accounting policy information; such information is material if, when considered together with other information included in the financial statements, it can reasonably be expected to influence decisions that the primary users make; paras. 117A to 117E clarify that such information may be material because of the nature of the related transactions even if the amounts are immaterial, and that immaterial information disclosed must not obscure material information.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

3 questions

• A financial statements preparer at Rubis SA summarises the requirements of IAS 1 on accounting policy information. Which of the preparer's sentences is wrong?L2
• Quartz SA prepares its notes. For which of the following accounting policy information can it reasonably be expected that it will influence the decisions of the primary users? More than one answer is possible. Case convention: the amounts and circumstances given are those of each line.L2
• Saphir SA's notes reproduce word for word, for 14 accounting policies, the text of the corresponding standards, and say almost nothing about the accounting for its multi-year maintenance contracts, which account for 45% of its revenue and rest on a management judgement (case facts). Management considers the whole "complete and compliant". Write a short justification stating whether these notes meet the requirement for material accounting policy information.L3