IASB publishes revised Practice Statement on Management Commentary as a global reference framework for better corporate reporting

On 23 June 2025, the International Accounting Standards Board (IASB) published its revised Practice Statement 1 “Management Commentary”. The revised Practice Statement supports the improvement and greater international harmonisation of management commentary and narrative reporting.

The revision was prompted by feedback from investors who had pointed out shortcomings in previous reporting practices. In response, the IASB has fundamentally revised the Practice Statement to significantly improve the relevance, quality and focus of information provided to investors.

The Practice Statement retains its status as a voluntary guideline. The IASB recommends that entities use it at an early stage, particularly in light of growing expectations for coherent, decision-useful reporting. The document can also be used by regulators worldwide as a reference for updating or developing jurisdictional requirements and guidelines.

In revising the practice statement, the IASB worked closely with the International Sustainability Standards Board (ISSB) to align the respective requirements of both boards and facilitate the provision of connected information across an entity’s financial reporting. The IASB’s work on updating the practice statement is also based on innovations in narrative reporting, including the Integrated Reporting Framework.

The revised Practice Statement is available for purchase on the IFRS Foundation website. Supplementary material is also available free of charge to provide guidance on the content, including:

• an introductory video with Linda Mezon-Hutter (IASB) and Sue Lloyd (ISSB),
• a project summary including a report on the consideration of the feedback received,
• the compact overview ‘Management Commentary — At a Glance’ and
• an accompanying ISSB statement on the application of the guidance document in conjunction with the ISSB standards.