Financial materiality
From ACT Wiki
1. Financial reporting - risk management - ESG - sustainability reporting - European Sustainability Reporting Standards (ESRS).
In the context of sustainability reporting, European Sustainability Reporting Standards (ESRS) define a sustainability matter as material from a financial perspective if it generates risks or opportunities that affect (or could reasonably be expected to affect) the undertaking’s
- (1) Financial position, financial performance, cash flows, access to finance or cost of capital
- (2) Over the short, medium or long term.
(Source - Annex 2 - abbreviations and definitions - supplementing Directive 2013/34/EU of the European Parliament and of the Council as regards sustainability reporting standards - European Commission.)
2. Financial reporting - risk management.
More broadly, any assessment of materiality from a financial point of view.
See also
- Assurance
- Audit
- Double materiality
- Double materiality assessment
- ESG
- European Commission
- European Financial Reporting Advisory Group (EFRAG)
- European Sustainability Reporting Standards (ESRS)
- Financial reporting
- Guidance
- Guide to risk management
- Immaterial
- Impact
- Impact materiality
- Material
- Material by nature
- Materialistic
- Materiality
- Materiality assessment
- Risk
- Risk management
- Sustainability
- Sustainability reporting
- Sustainability statement