Materiality is one of the underlying constraints in the application of the IFRS conceptual framework.

Question

Quizplus · Accepted Answer

Materiality is considered as an important factor that influences the decision-making process of users of financial statements. In the IFRS conceptual framework, materiality is recognized as a constraint that helps to identify the information that is relevant to users and could influence their decisions. Therefore, the materiality concept is one of the fundamental principles underlying the IFRS conceptual framework. Hence, the statement is true.

Materiality Is One of the Underlying Constraints in the Application