Page 384 - SBR Integrated Workbook STUDENT S18-J19
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Chapter 23
Management commentary
7.1 What is management commentary?
Management commentary provides users with context through which to interpret the
financial position, financial performance and cash flows of an entity.
It is not mandatory for entities to publish a management commentary. However, the
Board has produced a Practice Statement that provides guidance when producing
management commentary.
7.2 Elements of management commentary
Management commentary should include information that is essential to an
understanding of:
the nature of the business
management’s objectives and its strategies for meeting them
the entity’s resources, risks and relationships
the results of operations and prospects, and
key performance measures used by management to evaluate the entity’s
performance.
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