IFRS in Focus — IASB issues practice statement on management commentary (December 2010)
On 8 December 2010, the International Accounting Standards Board (IASB) issued Practice Statement Management Commentary. The Practice Statement is not an IFRS and therefore an entity does not need to comply with it in order to comply with International Financial Reporting Standards (IFRSs). However, management should explain the extent to which the Practice Statement has been followed.
The Practice Statement provides a framework for the presentation of management commentary to accompany financial statements prepared in accordance with IFRSs. Entities are permitted to adapt the information provided to their particular circumstances, such as the legal and economic circumstances of individual jurisdictions.