Global Management Commentary Guidance Should Reflect ESG Rules

The International Accounting Standards Board said it wants to work closely with the new sustainability reporting standard-setter in developing revised guidelines for management commentary associated with financial statements.

The IASB was discussing feedback at a meeting Thursday on May 2021 draft revisions to the management commentary guidelines. The guidelines haven’t been changed since 2010, and IASB members noted broad support for the general approach of promoting alignment between financial information and the narrative approach of the management commentary, which should help to explain a company’s financial performance.

• IASB members said the feedback suggested they should work directly with their sister ...