Materiality is not just a fundamental concept embedded in accounting frameworks but is also a practical tool that companies can use to focus reporting on what matters. Companies use materiality to decide what to include and exclude in corporate reporting. It provides a lens to consider the amount and depth of information needed. 

As reporting requirements grow, materiality must become a powerful tool to ensure disclosures remain relevant and provide decision-useful information to investors.

Materiality in practice: applying a materiality mindset

Applying a materiality mindset can be powerful for corporate reporting. Drawing on the lessons learned from our project participants, the Lab has compiled a toolkit to help companies with materiality assessments.

Think about investor needs and decision-making

Understanding how investors use information to make decisions will help boards and management when making materiality assessments. Learn more about investors and their core information needs.

Take a holistic approach to materiality

Boards and management can benefit from aligning their materiality assessments more with investor needs. The Lab explores how companies can take a more holistic and connected approach to materiality.

Embed a materiality mindset

Reporting in a clear, concise and compelling way can be challenging. Learn from companies and advisors who shared their advice and tips on how to embed a materiality mindset into corporate reporting.