IASB Management Commentary back on the agenda
In January 2007 the project team, in an Education Session to the IASB Board, presented a summary of the feedback on the IASB’s Management Commentary (MC) discussion paper received during the consultation process. Given the strong support for the proposals put forward in the discussion paper, the Board asked the project team to prepare an agenda proposal.
Summary of feedback
Overall there were 116 comment letters analysed. Of the comment letters analysed, 104 or 92% of those who answered the question, agree that MC is an integral part of financial reports.
Eighty-eight of the respondents, representing 95% of those who answered the question, agree that the objective of MC is to provide information to help investors:
- interpret and assess the related financial statements in the context of the environment in which the entity operates;
- assess what management views as the most important issues facing the entity and how it intends to manage those issues; and
- assess the strategies adopted by the entity and the likelihood that those strategies will be successful.