A representative financial reporting standards body has published a comparison of reporting definitions and approaches by eight of the world’s most prominent organisations in corporate reporting.

The 'statement of common principles of materiality' was released by the Corporate Reporting Dialogue (CRD), which represents organisations with responsibility for setting standards or developing guidance for corporate reporting, including the International Accounting Standards Board.

The publication outlines the common principles in the CRD organisations’ definitions of materiality and is part of the initiative’s work to collaborate on clarifying reporting concepts.

The CRD defines material information as “any information which is reasonably capable of making a difference to the conclusions stakeholders may draw when reviewing the related information”.

Huguette Labelle, Chair of the CRD, commented: “It is not possible to establish a ‘one size fits all’ quantified definition of materiality – in many countries it is a legal concept with established definitions. However, this paper demonstrates a commitment by participants to identify practical ways and means by which their respective frameworks, standards and related requirements can be aligned and rationalized. This paper follows the publication of the Corporate Reporting Landscape Map in 2015, which was welcomed by the market as a tool that promotes greater alignment between corporate reporting frameworks and standards. I look forward to working with the participants of the Dialogue as we continue to identify next steps for bringing clarity to the corporate reporting field.”

The Statement of Common Principles on Materiality is available here.