Tuesday 09 February 2010

Advanced search

Print Current Page
about us image

Press Releases

IASB proposes guidance for the preparation and presentation of management commentary

23 June 2009

 

 

The International Accounting Standards Board (IASB) today published for public comment a proposed non-mandatory framework to help entities prepare and present a narrative report, often referred to as management commentary.

Management commentary is an opportunity for management to outline how an entity’s financial position, financial performance and cash flows relate to management’s objectives and its strategies for achieving those objectives.

The information contained in management commentary is therefore of keen interest to investors and other users of financial statements. However, while management commentary-type reporting is mandatory in many jurisdictions, some do not have guidance for this type of narrative report. Many preparers and users therefore indicated a need for the IASB to provide such guidance.

The proposals draw upon international best practice in the preparation and presentation of management commentary. The IASB believes that providing non-mandatory guidance will improve the consistency and the comparability of management commentary across jurisdictions.

Introducing the exposure draft containing the proposals, Sir David Tweedie, Chairman of the IASB, said:

Management commentary is one of the most useful sections of an annual report, yet many countries applying IFRSs do not have guidelines that cover how to prepare or present this important information. In today’s uncertain financial climate it is particularly important for entities to explain their financial performance relative to their expectations and their strategies.

The exposure draft Management Commentary is open for comment until 1 March 2010. It can be accessed on the ‘Open for Comment’ section on www.iasb.org. Respondents’ comments will help the IASB in the development of final guidance on management commentary.

Printed copies of the exposure draft (ISBN 978-1-907026-14-0) will be available shortly, at £10.00 plus shipping, from: 

IASC Foundation Publications Department,
30 Cannon Street, London EC4M 6XH, United Kingdom.
Tel: +44 (0)20 7332 2730 Fax +44 (0)20 7332 2749
Email: publications@iasb.org Web: www.iasb.org

Press enquiries

 

For press enquiries, please contact:

  • Mark Byatt, Director of Corporate Communications, IASB
    Telephone: +44 (0)20 7246 6472
    Email: mbyatt@iasb.org
  • Sonja Horn, Communications Adviser, IASB
    Telephone: +44 (0)20 7246 6463
    Email: shorn@iasb.org
Technical enquiries

 

For technical enquiries, please contact:

  • Amy Schmidt, Project Manager, IASB
    Telephone: +44 (0)20 7246 6452
    Email: aschmidt@iasb.org