2. Non-financial Reporting

Non-financial reporting enables entities to be more transparent in communicating non-financial elements of their business to their stakeholders. Non-financial reporting can have significant benefits to an entity in terms of its reputation and positive stakeholder engagement.

2.1Environmental reporting

The aim of environmental reporting is the disclosure of an organisation's corporate environmental responsibilities and the effects of its activities on its environment.

2.2 Social report

The aim of social reporting is to measure and disclose the social impact of a business's activities.

Examples of social measures include:

? Philanthropic donations（慈善捐贈）

? Employee satisfaction levels and remuneration issues;

? Community support; and

? Stakeholder consultation information

2.3 Management commentary（管理層評述）

Management commentary: a narrative report that relates to financial statements that have been prepared in accordance with IFRSs. Management commentary provides users with historical explanations of the amounts presented in the financial statements, specifically the entity's financial position, financial performance and cash flows. It also provides commentary on an entity's prospects and other information not presented in the financial statements. Management commentary also serves as a basis for understanding management's objectives and its strategies for achieving those objectives.

The IFRS Practice Statement is a non-binding guidance document rather than an IFRS

It is designed for publicly traded entities, but it is left to regulators to decide which entities are required to publish management commentary and how frequently they should report. This approach avoids the adoption hurdle, i.e. that the perceived cost of applying IFRSs increases, which could otherwise dissuade countries not having adopted IFRSs from requiring its adoption, especially where requirements differ significantly from existing national requirements.