Disclosure choices, corporate characteristics and compliance with IFRS practice statement management commentary
In this study, we used 100 largest listed companies data from Malaysia to investigate to what extent these companies have been complying with International Financial Reporting Standard’s Practice Statement (Management Commentary). The results indicate that the compliance with the Practice Statement is low as the compliance levels range from the low of 22% to the high of 67% with an average disclosure of 47.4%. Companies place greater emphasis on disclosures regarding the internal workings of the firm but less so on the external factors and influence. Profitability, old age companies and institutional ownership influence the disclosure practices of the companies in the above context.