IASB issues revised Practice Statement on management commentary

The International Accounting Standards Board (IASB) has issued a revised Practice Statement on management commentary. The revised Practice Statement supports improvements to and greater global alignment in management commentary and narrative reports accompanying the financial statements.

Investors had highlighted shortcomings in current practice. In response, the IASB carried out a major overhaul of the Practice Statement to help improve the quality and focus of information provided to investors.

The IASB intends for the revised Practice Statement to serve as a global benchmark for regulators to use in updating or developing their national requirements and guidance. It would also provide a comprehensive resource for companies to help meet investors’ information needs.

In developing the revised Practice Statement, the IASB worked closely with the International Sustainability Standards Board (ISSB) to help align the two boards’ respective requirements and to facilitate connected information across a company’s financial reports. The IASB’s work on updating the Practice Statement also draws on innovations in narrative reporting, including the Integrated Reporting Framework.

Explainer video

Watch this video in which IASB Vice-Chair Linda Mezon-Hutter and ISSB Vice-Chair Sue Lloyd explain how the revised Practice Statement helps companies bring together financial statements with sustainability-related information for the benefit of investors.

Access the Practice Statement and supporting material

The revised IFRS Practice Statement 1 Management Commentary is available online for IFRS Digital subscribers or in the IFRS Foundation Shop as a PDF.

• IFRS Practice Statement 1 Management Commentary
• IFRS Practice Statement 1 Management Commentary—Basis for Conclusions
• Project Summary and Feedback Statement
• Management Commentary—At a Glance

ISSB statement

Read the ISSB Statement: Using ISSB Standards with the revised Management Commentary Practice Statement.