IASB seeks views on proposed management commentary framework

The board’s framework aims to bring together in one place information for investors to assess companies’ long-term prospects.

The International Accounting Standards Board (IASB) released Thursday its proposed framework for companies preparing a management commentary — sometimes referred to as a management discussion and analysis report.

The proposed framework, in an exposure draft for consultation, represents a major overhaul of IFRS Practice Statement 1, Management Commentary, the board explained.

The board said: “The proposed framework sets out disclosure objectives for information about the company’s business model, strategy, resources and relationships, risks, external environment, and financial performance and position.

“The disclosure objectives are designed to enable companies to identify and provide information that is material to investors, and to enable regulators and auditors to assess compliance with the proposed framework.”

Hans Hoogervorst, IASB chair, said: “The proposed new framework provides a robust basis for bringing together in a single report financial, sustainability, and other information about the matters that are fundamental to a company’s long-term prospects.”

Hoogervorst also introduced the exposure draft in a video.

IFRS standards do not require companies to provide a management commentary, which complements a company’s financial statements. This is unchanged by the proposed new framework. However, regulators may require companies to provide management commentary in accordance with the proposed framework, or companies may choose to do so, the IASB explained.

Comments on the exposure draft — either by email to or online — are due 23 November 2021.

Oliver Rowe ( is an FM magazine senior editor.