IFRS and XBRL: How to improve Business Reporting through Technology and Object Tracking

CHAPTER FIVE

IFRS Practice Statement Management Commentary

Objective

The objective of the Practice Statement is to assist management in presenting useful management commentary that relates to financial statements that have been prepared in accordance with IFRS.

Scope

The Practice Statement applies only to management commentary and not to other information presented in either the financial statements of the broader financial reports. The Practice Statement should be applied by entities that present management commentary that relates to financial statements prepared in accordance with IFRS. The Practice Statement does not mandate which entities should be required to publish management commentary, how frequently an entity should do so or the level of assurance to which management commentary should be subjected.

Summary

In addition to the objective, scope and related introduction, a summary of the IFRS Practice Statement appears next:

• Identification of management commentary
• Users of management commentary
• Framework for the presentation of management commentary
  • Purpose
  • Principles
  • Presentation
• Elements of management commentary
  • Nature of the business
  • Objectives and strategies
  • Resources, risks and relationships
  • Results and prospects
  • Performance measures and indicators
• Application date
• Appendix:
  • Defined terms

Purpose of the Practice Statement

The IFRS Practice Statement Management Commentary provides a broad, non-binding framework for the presentation of management commentary ...