IASB to finalise Management Commentary project - a stepping stone towards greater integration in reporting in the future

The International Accounting Standards Board (IASB) has unanimously decided to move forward with finalising the revision of the IFRS Practice Statement 1 Management Commentary by making targeted refinements to its proposals in the Exposure Draft Management Commentary.

The IASB’s project codifies innovations in reporting, including concepts from the Integrated Reporting Framework, in a set of standard-like requirements for management commentary designed to support investor-focused best-practice.

Finalising the project provides a stepping-stone towards greater integration in reporting in the future. In refining its proposals, the IASB will collaborate with the International Sustainability Standards Board (ISSB) and consult with the Integrated Reporting and Connectivity Council.

Find out more via the IFRS Foundation website.

The IASB consulted on its proposals for the revised Management Commentary Practice Statement in 2021 and received broad support from stakeholders. Since then, the IASB and ISSB have assumed responsibility for the Integrated Reporting Framework and a joint staff team conducted an analysis of similarities and differences between the Exposure Draft Management Commentary and the Integrated Reporting Framework. The analysis highlighted—with a few exceptions, such as requirements on governance reporting or the use of the terminology—broad conceptual alignment and the complementary nature of these resources.

The Chairs of the IASB and the ISSB issued a joint statement on the significance of the Integrated Reporting Framework to the work of the IFRS Foundation in May 2022. Furthermore, the ISSB will shortly issue its feedback statement on its future priorities through which it will confirm its support for the continued use and adoption of the Integrated Reporting Framework.