In: Accounting
Accounting Question:
What is the section: Management Discussion and Analysis on company annual/10K reports? What information can you pull from it?
MEANING
Management discussion and analysis is a report on the performance of company . It is a part of annual report of public company . In this report an analsis of company performance in qualitative and quantitative measures are presented by company`s `management and executives known as C-Suite.
DETAILED CONTAINED IN MD&A
It provides a commentary on financial statements , system and controls, legal compliances , any activity palnned by company or any challenges faced by company . This also contains the discussion on suceeding year by defining future goals and approaches to new projects. MD&A also have important source of informations for investors and anylysts , who are interested in companys finanacial informations and its perfprmance.
The MD&A is required to be included in annual report by Securities and Exchange acaommission (SEC) and Financial Accounting Standards Board .
An auditor appointed do not audit MD&A section as it represent thoughts and opinions of managenet and it provide with future forcast for company operations .
INFORMATION ONE CAN GET FROM MD&A
In this section management reports regarding sales , segment performance, profits , accounting pronouncements, future goals, controls , legal compliances and risk analysis .
So almost all informations required by investors are available in this report like sales analysis, financial analysis , future goals analysis .
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