This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice (http://www2.deloitte.com/ca/en/legal/cookies.html) for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Management Commentary – International Accounting Standards Board

Date recorded:

At its meeting on November 18, 2020, the IASB tentatively decided that: (i) an entity that complies with the revised Practice Statement should be permitted to state that fact even if the entity does not prepare its financial statements in accordance with IFRS Standards; (ii) the revised Practice Statement:

  1. use ‘accuracy’ to describe freedom from error, noting that both qualitative and quantitative information can be accurate;
  2. explain that information need not be perfectly accurate in all respects—the degree of accuracy and precision that is needed and is attainable varies depending on the nature of the information; and
  3. explain that the factors that make information accurate depend on the type of information. For example, accuracy requires that: factual information is free from material errors; descriptions are precise; estimates, approximations and forecasts are clearly identified as such, and are developed by correctly applying an appropriate process, using reasonable and supportable inputs; assertions are based on reasonable and supportable information; and information about management’s judgements about the future precisely describes the judgements and how they have been reached. The Board discussed suggestions for refining both the overall objective of management commentary and the disclosure objectives for areas of content in management commentary.

The Board was not asked to make any decisions. The Board has started the process of preparing an Exposure Draft for balloting. It expects to publish the Exposure Draft in April 2021.

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

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.