Question

Summarise the importance of the operating and financial review (OFR) especially in light of the current COVID-19 pandemic.

Answer 1

Operating and Financial Review: OFR is made published by the Listed Entities and one of the essential part of Annual Reporting.
It helps the stakeholders to set out or provide the information required to determine the entities performances, Their operational, financial position and furtehr business prospects.
Lets discuss in detail the impact of Pandemic over such reporting:
S. NO.	Principle of OFR	Importance in Light of COVID 19
1	Consistent and Complementary	With this the information included in Financial Reporting shall also be consistent with the OFR report, specifically with this COIVID 19 any management estiamtion changes, going concern impact has been changed or not, same is required to be consisent with the financial Reporting and OFR. With this Stakeholders will get to know the management insight of their future prospects.
2	Balanced and UnAmbigious	Disclosure of all Good and -ve impact of the COVID 19 over the business prospect shall be focused herewith. With this +ve and -ve impact, stakeholders will able to analyse the impact on their invested iNdustry.
3	Clear, Concise and effective	With the OFR, complex concepts is easily laid over or conceptualise for stakeholders for understanding. With the clear and concise information provided herewith, and Impact of COVID 19 and further actions taken herewith in respect of tackle over the COVID 19.
4	Operations and Business Model	It visualise the business model changes over a perido due to COVID 19, the reason for the same in on temporary or permanent changes required against any future pandemic if any.
5	Provide Useful and Meaningful Information	It provide the Information which is relevant in respect of COVID 19, specially in respect of Going concern and changes in estimation over a period, This will helps stakeholder to ananlyse the operation and closure of business over aperiod. Stakeholders will get to know the future steps which might be taken by the management in response to COVID 19
6	Enclose Signififcant Factors	It encloses that decline in Income or increase of overall expenses over a period cannot be simply marked COVID 19, It provide what other factors also contribute in the same. It provide the complete understanding of the segments contributing in increase in Income even in COVID 19 situations, which helps corporate to focus on such segment rather than focusing on other lose.
With OFR, Focus on the relevant KPI taken in factors to determine the performance over a period, ( Speciafically in COVID 19), determine whetehr such KPIs are relevant in COVID 19 situation or not, if not other factors evaluation is being presented here with.
From above it is evident that OFR ulitmately help to determine the mindset of the management and proactive actions taken by them and availability of the funds and generation of funds all are presented and summarised through OFR.