At its meeting on April 21-23, 2020, the IASB discussed the disclosure objectives and supporting guidance to be included in the revised IFRS Practice Statement 1 Management Commentary. The Board tentatively decided to specify in the disclosure objectives that management commentary should provide information and analysis to help investors and creditors understand:

1. how an entity’s business model creates value and generates cash flows;
2. management’s strategy for sustaining and developing the entity’s ability to create value and generate cash flows in the future; and
3. the resources and relationships on which the business model and strategy depend.

The Board made a number of other tentative decisions related to the entity’s business model, management’s strategy, and the entity’s resources and relationships. The Board’s next discussion is expected to cover risks and external environment.

Review the IASB Update and podcast on the Board's Web site.