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25 October, 15:02

Which of the following is true regarding Management's Discussion and Analysis (MD&A) ?

a. MD&A is not considered part of Required Supplementary Information (RSI).

b. MD&A takes the place of footnotes.

c. MD&A should present an analysis of significant variations between the original and final budget.

d. All of the above choices are true.

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Answers (1)
  1. 25 October, 15:29
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    The correct answer is letter "C": MD&A should present an analysis of significant variations between the original and final budget.

    Explanation:

    The Management Discussion And Analysis (MD&A) portion of an annual report for a company discusses certain elements of the success of the business. Although all parts of an annual report provide valuable details and the MD&A is important, it explains to shareholders why a company is stable or why it is not. The MD&A interprets the numbers in the financial statements, determines the organizational strategies and style of management which have led the organization to its current state.

    In such a case, the MD&A reflects the variations between the company's budget and the actual performance it had.
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Home » Business » Which of the following is true regarding Management's Discussion and Analysis (MD&A) ? a. MD&A is not considered part of Required Supplementary Information (RSI). b. MD&A takes the place of footnotes. c.
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