Management Discussion and Analysis (MD&A) (Currently Unavailable)

Author: Lynn Fountain

Management Discussion and Analysis, typically referred to as MD&A, is the portion of a public company's annual report (or quarterly filing) where management addresses the company’s performance. It is intended to be a narrative explanation of the financial statements and statistical data the Registrant believes will enhance a readers' understanding of its financial condition along with results of operation. Management discussion and analysis is one of many sections required by the SEC and the Financial Accounting Standards Board (FASB) to be included in a public company’s annual report to shareholders. The SEC has repeatedly stated, MD&A is the "heart and soul" of a company's disclosure requirements under the Securities Exchange Act of 1934. It is a crucial component in increasing the transparency of a company's financial performance and providing investors with the ability to evaluate the company on an informed basis.

On January 30, 2020 the SEC proposed amendments to eliminate certain duplicative disclosures and enhance disclosures in the Management's Discussion and Analysis of Financial Condition and Results of Operations section ("MD&A") for the financial statements. They also proposed parallel amendments applicable to financial disclosures provided by foreign private issuers. This chapter will provide an overview of important concepts and updates related to Management’s Discussion and Analysis of Financial Position and Results of Operation s (MD&A) as outlined in Topic 9 of the Financial reporting Manual.

The SEC has been continually reviewing the disclosure requirements to improve issuer disclosures of material information while allowing investors to make better capital allocation decisions while reducing compliance burdens and costs.

The Commissions purpose for goals in adopting integrated disclosures were to revise or eliminate overlapping or unnecessary disclosure requirements wherever possible. This in turn would reduce burdens on Registrants and enhance readability without affecting the provision of material information to investors. This course will evaluate the various amendments covered under the SEC’s changes to MD&A for public companies.

Publication Date: June 2020

Designed For
CFO’s and CEO’s, Board of Directors, Public Accounting Auditors, Finance and Accounting Professionals, and Compliance Professionals.

Topics Covered

• MD&A Objectives and Purpose
• Disclosure Components
• Updates to MD&A
• MD&A Pain Points
• KPI's

Learning Objectives

• Identify the purpose and objectives of MD&A
• Recognize the typical components included in MD&A
• Identify the updated objective of MD&A disclosures
• Describe how to examine details of final amendments
• Describe how to examine criteria related to Key Performance Indicators

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Auditing (2 hours)

Program Prerequisites
None

Advance Preparation
None