list and discuss the main purposes of the letter(M D'& A) to the stockholders?

Expert Solution

The letter of MD&A is known as management decision and analysis and this is a portion of a public company annual report in which management addresses the company annual performance that has seen in the last 12 months.

Below are the main purpose of this MD&A letter.

Required by FASB, it is required by FASB that management should always discuss the positive and negative performance of the company and this should be communicated to the investors as their money is at stake and for this information it becomes necessary that a letter should be prepared and send to the investors and this letter is prepared as MS&A.
Declare the results of operations, this letter covers the results of the operations and informs the investors about the profit or loss that has been earned/loss as per the result of the operations.
To declare critical accounting estimates, SEC encourages that company should discloses every critical estimates that they have prepared in preparing the accounts of the company.
Liquidity and capital resources of the company are declared in this letter. Any activity that will impact the liquidity or the capital resource of the company is completely disclosed in this letter.

ekkarill92 answered 2 years ago

brifely discuss the main purposes of orgnaization foal setting

Discuss the reasons M&A are described as a cost effective method for expansion purposes in the...

Discuss the reasons M&A are described as a cost effective method for expansion purposes in the business of corporations. Use an example for a successful M&A in Zambia as a point of reference

Define communication and describe the main purposes for communication in business. Use examples and discuss constraints...

Define communication and describe the main purposes for communication in business. Use examples and discuss constraints of all types - in other words what may get in the way of meaningful communication. 200 words

I don't know to do ii) for letter a, as well as letter d, e and...

I don't know to do ii) for letter a, as well as letter d, e and the EC . Can you help? The combustion of carbon monoxide is represented by the equation below: CO(g) + ½O 2 (g) → CO 2 (g) (a) (i) Determine the value of the standard enthalpy change, ΔH o rxn, for the combustion of CO(g) at 298 K using the following information. (3 pts) C(s) + ½O 2 (g) → CO(g) ΔH o 298 =...

Discuss Balance Sheet, Income Statement, Cash Flow Statement, and Statement of Stockholders' Equity. Mention the main...

Discuss Balance Sheet, Income Statement, Cash Flow Statement, and Statement of Stockholders' Equity. Mention the main features of each statement and how each of the statements listed can be used for analyzing the financial condition of a company.

Discuss the purposes of Demand Estimation.

discuss the purposes of budgeting process.

List and discuss the main areas of motor development necessary for the insertion of young children...

List and discuss the main areas of motor development necessary for the insertion of young children into early childhood facilities (the nursery program) in Guyana A child with physical limitation is accepted into your early childhood facility, what are some necessary considerations to cater for the needs of this child. There are five main areas to consider when describing the all-rounded development of the child. these include : There are two particular senses involve in motor skill development discuss. (...

Briefly explain the 4 main purposes for nation's balance of payments

One of the main purposes of the Sale of Goods Act is to supply, by implication,...

One of the main purposes of the Sale of Goods Act is to supply, by implication, many of the terms that have been inadvertently left out of contracts involving the purchase of goods. Do the terms of the Act excessively interfere with the principles of freedom of contract and caveat emptor?

Question