IASB issues revised Practice Statement on management commentary

The International Accounting Standards Board (IASB) has issued a revised Practice Statement on management commentary.

IFRS Practice Statement 1 - Management Commentary supersedes the previous version of the same document which was issued in December 2010 and is effective for application for periods commencing on or after 23 June 2025, with early application permitted. The Statement is not an IFRS Accounting Standard or an IFRS Sustainability Disclosure Standard.

The Practice Statement sets out requirements for management commentary and how those requirements can be met. Management commentary complements and accompanies financial statements with explanations from management about a company's performance, strategy and risk.

On releasing the revised Practice Statement, the IASB noted that they intend that it will "serve as a global benchmark for regulators to use in updating or developing their national requirements and guidance".

In recognition of the strong connectivity between management commentary and the International Sustainability Standards Board (ISSB) Standards, the IASB noted that they worked closely with the ISSB in the development of the document to help align the requirements of the two boards and to facilitate connected information across a company's financial reports.