The group considered a summary of the activities of the working group.

The working group noted that the management commentary should be subject to qualitative characteristics in the way that information contained in financial statements is. This could be done by expanding the scope of the existing IASB Framework to apply to financial reports or developing a separate framework for management commentary.

The principles proposed by the working group are:

Principle 1 - Financial Statement and Management Commentary Content

Financial statements must meet the objective outlined in the IASB Framework. This requires that they provide information about the financial performance, position, and changes in financial position achieved by the entity reporting. Management commentary should provide information on the key business factors and strategic and operating decision processes that generated those outcomes.

Principle 2 - Management Perspective

Management commentary should supplement and complement financial statement information by providing an analysis of the financial position and performance through the eyes of management, sharing their insights with the users. Management commentary should not simply replicate information conveyed through the financial statements.

Principle 3 - Strategic Focus

Management commentary should have an orientation to the future, reflecting the vision, strategy, and key performance drivers of the reporting entity. Management commentary should focus on the strategies in place for generating value for investors.

Principle 4 - Context

Management commentary should discuss the financial information within the context of the operating principles and goals established by the reporting entity.