The Singapore Accounting Standards Committee (ASC) has formally withdrawn Practice Statement 1 (PS 1) “Management Commentary” from the Financial Reporting Standards (FRS) framework, effective immediately as of 24 June 2025.
Key Details of the Withdrawal:
- Purpose of PS 1: The withdrawn Practice Statement provided non-mandatory guidance to assist non-listed entities in preparing management commentary. This commentary typically supplements financial statements by providing management’s perspective on the entity’s performance, position, and future prospects.
- Reason for Withdrawal: The ASC stated this action is part of its ongoing initiative to streamline the volume of frameworks and guidance it issues, reducing complexity for preparers.
- Impact on Entities: The withdrawal does not impose new requirements. Entities that previously utilized PS 1 for preparing voluntary management commentary are no longer guided by this specific framework. Crucially, entities remain fully compliant with FRS regulations regardless of whether they choose to prepare management commentary or not.
- Alignment with SFRS(I): This withdrawal aligns the FRS framework more closely with the Singapore Financial Reporting Standards (International) [SFRS(I)]. SFRS(I) does not include an equivalent practice statement for management commentary.
“The withdrawal of Practice Statement 1 reflects the ASC’s commitment to maintaining a clear and concise set of standards and guidance. Non-listed entities retain the flexibility to prepare management commentary using other relevant frameworks or principles best suited to their needs, while continuing to meet all mandatory FRS requirements.”
The removal signifies the end of a specific, optional guidance document. Entities developing management commentary will now need to rely on other resources or establish their own internal frameworks, ensuring transparency and usefulness for stakeholders.
Source: ACRA, 24 June 2025.