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IASB: Revised IFRS Practice Statement 1 Management Commentary
- 01 August 2025
- Accounting
- South African Accounting Academy
Summary:
The International Accounting Standards Board (IASB) has issued a revised Practice Statement on management commentary.
Article:
The revised Practice Statement supports improvements to and greater global alignment in management commentary and narrative reports accompanying the financial statements.
Investors had highlighted shortcomings in current practice. In response, the IASB carried out a major overhaul of the Practice Statement to help improve the quality and focus of information provided to investors.
The IASB intends for the revised Practice Statement to serve as a global benchmark for regulators to use in updating or developing their national requirements and guidance. It would also provide a comprehensive resource for companies to help meet investors’ information needs.
In developing the revised Practice Statement, the IASB worked closely with the International Sustainability Standards Board (ISSB) to help align the two boards’ respective requirements and to facilitate connected information across a company’s financial reports. The IASB’s work on updating the Practice Statement also draws on innovations in narrative reporting, including the Integrated Reporting Framework.
Related documents can be downloaded at:
- IFRS Practice Statement 1 Management Commentary—Basis for Conclusions https://www.ifrs.org/content/dam/ifrs/publications/amendments/english/2025/iasb-ps2025-1-bc.pdf
- Project Summary and Feedback Statement https://www.ifrs.org/content/dam/ifrs/project/management-commentary/practice-statement/projectsummary-mc-ps1.pdf
- Management Commentary—At a Glance https://www.ifrs.org/content/dam/ifrs/project/management-commentary/practice-statement/mc-one-page.pdf
Read the ISSB Statement: Using ISSB Standards with the revised Management Commentary Practice Statement at https://www.ifrs.org/content/ifrs/home/news-and-events/news/2025/06/using-issb-standards-with-management-commentary.html
Click here to download the 117-page Practice Statement:
https://www.ifrs.org/content/dam/ifrs/publications/amendments/english/2025/iasb-ps2025-1.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- As an auditor and independent reviewer, you need to consider your clients’ compliance with accounting standards.
- As an accountant and compiler of financial statements, you need to consider amendments to and reviews of standards that are issued by the standard-setting bodies, e.g. IASB, IAASB, etc.
- You should be aware of other pronouncements, e.g. practice statements, that have been issued by the IASB.
Relevance to Your clients:
- An entity compiling filing financials need to consider amendments to and reviews of standards that are issued by the standard-setting bodies, e.g. IASB, IAASB, etc.
-
Your clients should be aware of other pronouncements, e.g. practice statements, that have been issued by the IASB.