This update was first published in the February 2011 UK issue of Accounting and Business magazine
In December 2010, the IASB issued an International Financial Reporting Standard (IFRS) Practice Statement on Management Commentary.
The statement provides a non-binding framework for the presentation of narrative reporting that accompanies financial statements prepared in accordance with IFRSs. As the statement is not an IFRS, it does not need to be applied in order for an entity to comply with IFRS.
Yvonne Lang, director, Smith & Williamson