The International Accounting Standards Board (IASB) has issued a revised Practice Statement on management commentary, aiming to improve the quality, focus and global alignment of narrative reporting that accompanies financial statements. The update responds to investor-identified shortcomings in current practice and is positioned as a benchmark that regulators can use when updating or developing national requirements and guidance. The revised Practice Statement is intended to help companies meet investors’ information needs and to support more connected reporting. Development was coordinated with the International Sustainability Standards Board (ISSB) to align respective requirements and facilitate links between financial statements and sustainability-related information, and it also draws on developments in narrative reporting such as the Integrated Reporting Framework. The Practice Statement and supporting materials, including a Basis for Conclusions and project feedback documents, are available via IFRS Digital and the IFRS Foundation Shop.
International Financial Reporting Standards Foundation 2025-06-23
International Financial Reporting Standards Foundation’s IASB issues revised management commentary Practice Statement as a global benchmark for narrative reporting
The International Accounting Standards Board (IASB) issued a revised Practice Statement on management commentary to enhance narrative reporting's quality and global alignment with financial statements. This update addresses investor-identified shortcomings and serves as a benchmark for regulators updating national requirements. The development was coordinated with the International Sustainability Standards Board (ISSB) to align financial and sustainability reporting.