Question 1 [20 Marks] a. The directors of Baboloki (Pty) Ltd are committed to producing high-quality reports that enable its investors to assess the performance and position of the business. They have heard that the International Accounting Standards Board (IASB) has published a Practice Statement on management commentary. However, they are unsure what is meant by management commentary, and the extent to which it provides useful information. Required: Discuss the nature of management commentary and the extent to which it embodies the qualitative characteristics of useful financial information (as outlined in the Conceptual Framework for Financial Reporting). [10 marks] b. Menyatso (Pty) Ltd continues to prepare its financial statements using the SMEs Standard because of the difficulties involved every time a new IFRS Standard is issued. The directors believe that the practicalities and financial statement implications of regularly implementing new IFRS Standards are overly onerous to an entity the size of Menyatso. However, Menyatso may have to transition to full IFRS Standards if it continues to grow in size. Required: Discuss the key practical considerations and financial statement implications that an entity must consider when implementing a new IFRS Standard. [10 marks