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In June 2025 the International Accounting Standards Board (IASB) issued the revised IFRS Practice Statement 1 Management Commentary (revised Practice Statement). The revised Practice Statement is designed to support improvements to and greater global alignment in management commentary and similar reports.
Management commentary is a general purpose financial report that accompanies financial statements and might accompany or include sustainability-related financial disclosures. It plays an essential role in investors’ assessments of an entity’s prospects.
The revised Practice Statement focuses on investors’ information needs and targets shortcomings in practice. It is designed to provide a global benchmark for regulators to use in updating or developing national requirements and guidance. It provides a comprehensive set of requirements and guidance to help an entity present, in a single, concise and coherent narrative, information about financial, sustainability-related and other factors fundamental to the entity’s ability to create value and generate cash flows—including in the long term. In developing the revised Practice Statement, the IASB built on innovations in narrative reporting, including the Integrated Reporting Framework.
The revised Practice Statement supports the provision of connected information both within management commentary and across management commentary and other general purpose financial reports. Refer to the ‘Connecting IFRS Accounting and IFRS Sustainability’ page for other connectivity-related resources and developments.
The revised Practice Statement works well with IFRS Accounting Standards and IFRS Sustainability Disclosure Standards and can be applied alongside local law or regulation. IFRS Sustainability Disclosure Standards can help entities identify material information about sustainability-related factors for inclusion in management commentary. An entity is not required to apply the revised Practice Statement to state compliance with IFRS Accounting Standards.
Accessing the Practice Statement
The revised IFRS Practice Statement 1 Management Commentary is available online for IFRS Digital subscribers or in the IFRS Foundation Shop as a PDF.
