Double materiality

From ACT Wiki
Jump to navigationJump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

Financial reporting - risk management - materiality - climate change.

Materiality is a threshold at which insignificance becomes significance.

Materiality is also a fundamentally important concept in traditional financial accounting.

Relevant accounting standards, principles and disclosures need only be applied to material items.


Double materiality is a concept in climate reporting.

It extends the concept of material items to include not only (1) the impact of climate on the reporting company, but also - and additionally (2) the impacts of the company on the climate.


The consequence is that the nature and number of items that must be disclosed is significantly increased.


See also