IASB Completes Key Milestone for Revised Management Commentary Practice Statement

The International Accounting Standards Board (IASB) has finalized its technical decisions on the revised IFRS Practice Statement 1, Management Commentary. The updated Practice Statement is now entering the drafting phase and is slated for publication in the first half of 2025.

This revision addresses growing calls for improved insights into factors influencing a company’s ability to create value and generate cash flows, particularly over the long term. In response to stakeholder feedback, the IASB incorporated targeted enhancements to align the Practice Statement with IFRS Sustainability Disclosure Standards and to foster better connectivity across companies’ financial and sustainability reports.

“The revised Practice Statement marks an important step towards more integrated reporting,” said IASB officials. “It aims to provide regulators and companies with a robust framework to enhance the quality and consistency of management commentary globally.”