At its meeting on September 22-23, 2020, the IASB met to discuss the status that the revised IFRS Practice Statement 1, Management Commentary (revised Practice Statement) would have, and the procedures for an entity to follow when it chooses or is required by local legislation to issue management commentary applying the Practice Statement. The Board tentatively decided that the revised Practice Statement should retain the status of the current Practice Statement, meaning that:

1. the revised Practice Statement would be a non-binding framework for the preparation of management commentary;
2. the revised Practice Statement would not become an IFRS Standard; and
3. an entity could state that its financial statements comply with IFRS Standards without preparing a management commentary that complies with the revised Practice Statement.

The Board tentatively decided that the revised Practice Statement should:

1. require an entity to include in its management commentary an unqualified statement of compliance with the revised Practice Statement if the management commentary complies with all the requirements in the revised Practice Statement.
2. permit an entity to include in its management commentary a statement of partial compliance with the revised Practice Statement. In this case, the management commentary would need to explain which requirements of the revised Practice Statement the management commentary does not comply with.

The Board tentatively decided that the revised Practice Statement should require an entity to:

1. either make the financial statements to which management commentary relates available with the management commentary, or identify them in the management commentary; and
2. clearly identify what information constitutes its management commentary and distinguish it from other information in the same report and from information in other reports.

The Board tentatively decided that the revised Practice Statement should require an entity to:

1. specify the date when its management commentary was authorized for issue;
2. reflect in its management commentary material information about events that occurred after the end of the reporting period and before the date the management commentary was authorized for issue; and
3. identify the individuals or the bodies who authorized management commentary for issue.

At a future meeting, the Board expects to: (a) consider whether its proposals on the project sufficiently and appropriately cover topics of particular interest to investors and creditors—for example, environmental, social and governance matters, and intangible resources and relationships; and (b) decide whether to begin the balloting process for the Exposure Draft.

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