IASB to finalise revision of management commentary practice statement
On 19 June, the International Accounting Standards Board (IASB) unanimously agreed to finalise the revision of IFRS Practice Statement 1 Management Commentary. The decision, based on targeted refinements to the Exposure Draft on Management Commentary, aims to enhance information about factors impacting a company’s ability to create value and generate cash flows.
While IFRS Standards do not mandate management commentary, many regulators require them. The revised Practice Statement is expected to serve as a valuable resource for regulators and companies, promoting global alignment and improvement in these reports. The project integrates concepts from the IFRS Foundation’s Integrated Reporting Framework, providing standard-like requirements to support investor-focused best practices.
The IASB’s project aims to foster connectivity between management commentary, financial statements, and sustainability disclosures, working closely with the International Sustainability Standards Board (ISSB) and the Integrated Reporting and Connectivity Council.
The IASB plans to issue the revised Practice Statement in the first half of 2025.
For more information, read the announcement.
