Approach to Materiality & Standards Development – Staff Bulletin

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This is the first publication to provide a detailed overview of SASB’s approach to materiality in its standard-setting process.

SASB’s approach to determining materiality for the purposes of standards setting is informed by the provisions of the federal securities laws and the regulations of the Securities and Exchange Commission, including in particular Regulation S-K; opinions of the U.S. Supreme Court; and interpretations and guidance issued by the SEC. With this process, SASB is able to identify topics that are reasonably likely to be material to investors and therefore warrant inclusion as a topic for standardized disclosure, and thereby improve the decision-usefulness of information contained in SEC filings (such as Forms 10-K and 20-F).