On March 7, 2024, Lynn Turner participated in the SEC Investor Advisory Committee (“IAC”) meeting to provide the Commission input as to the issue of materiality in financial statements and disclosures. This included the definitions of materiality, as set forth in U.S. securities laws, including and as well as regulations, court opinions, and accounting and auditing guidance. The discussion focused on the definition of materiality, the implementation and determination of materiality, transparency surrounding how materiality is determined, and what constitutes a material amount in financial statements. The discussion included participants discussing improvements that might better serve investors and can be implemented within the current legal framework.

This year marks the 25th anniversary of Staff Accounting Bulletin 99 – Materiality (“SAB 99”), of which Mr. Turner was a principal author, during his time serving as Chief Accountant at the SEC.

The IAC, which focuses on investor-related interests, advises the Commission on regulatory priorities and initiatives to help protect investors and promote the integrity of U.S. securities markets. Established by the Dodd-Frank Act, the IAC is authorized by Congress to submit findings and recommendations to the Commission.

The agenda for this meeting can be found here:https://www.sec.gov/advocate/iac030724-agenda

A replay of Part 1 can be found here: https://www.youtube.com/watch?v=jXTK5iCdz4A

A replay of Part 2 can be found here: https://www.youtube.com/watch?v=Q3x5j8wKglE

Last spring, Mr. Turner published an article, co-authored with Professor Thomas R., titled “Expanding the Concept of Materiality to Environmental, Social, and Governance: Audit Issues and Implications.”  This article can be found in the American Accounting Association’s publication, Current Issues in Accounting, Spring 2023 Edition, at: https://publications.aaahq.org/cia/article/17/1/A50/10092/Expanding-the-Concept-of-Materiality-to