IFAC Comment Letter on IFRS Practice Statement 1, Management Commentary

Contributing to the Global Economy

A fundamental tenant of IFAC's vision about the information companies provide to investors and stakeholders is that reporting and disclosure should capture all relevant information about organizations. To be accountable, companies need to provide a clear and comprehensive picture of their organization's ability to create sustainable value over time.

As stated in the Point of View Enhancing Corporate Reporting, "the management report might be the most appropriate channel for including integrated and supplementary narratives and metrics" that allows a company to provide a more complete picture of enterprise value. Further, "integrated thinking" and forward-looking reporting enable organizations to communicate effectively-and stakeholders to understand-prospects for longer-term value creation."

IFAC supports the IASB's efforts to update and enhance its Management Commentary Practice Statement and make it sufficiently flexible to accommodate jurisdictional requirements as well as various frameworks and initiatives, such as integrated reporting, investor-focused initiatives like those that contributed to the IFRS Technical Readiness Working Group, and-of course-the recently announced International Sustainability Standards Board.