Practice Statements

The International Accounting Standards Board (IASB) has issued the following IFRS Practice Statements.

These practice statements provide non-mandatory guidance.

If your entity applies IFRS® Standards, you are not required to comply with these IFRS Practice Statements in order to state compliance with IFRS Standards.

We have provided access to these Practice Statements to those for-profit entities preparing financial statements in accordance with NZ IFRS.

Note, if your entity reports in accordance with NZ IFRS, you may be subject to other requirements or guidance on matters covered in these IFRS Practice Statements. Your entity is still required to comply with all applicable laws and regulations. 

IFRS Practice Statement 1 - Management Commentary (MCPS1)

Issued in December 2010, this provides a broad, non-binding framework for presenting management commentary on financial statements that have been prepared in accordance with IFRS Standards.

If your entity prepares general purpose financial reports in accordance with NZ IFRS, you may elect to apply the principles contained in MCPS 1 to your entity’s management commentary that relates to those financial reports.

IFRS Practice Statement 2 - Making Materiality Judgements (MPS2)

Issued in September 2017, this provides guidance and examples that help preparers of financial statements in making materiality judgements.

If your entity  prepares general purpose financial statements in accordance with NZ IFRS, you may elect to apply the guidance contained in MPS 2 when making materiality judgements when preparing those financial statements.

This page refers to the work of the International Accounting Standards Board (IASB) and uses registered trademarks of the IFRS Foundation (for example, IFRS® Standards, IFRIC® Interpretations and IASB® papers).