Provide five examples of the type of information to be addressed by management in its discussion and analysis (MD&A). How might this be beneficial or non-beneficial in the for-profit arena?
The MD&A is an unaudited portion of the financial statements both for governmental and for-profit entities. One of the main topics discussed in the management discussion and analysis (MD&A) section is the general overall financial performance of the entity. This topic is addressed by both governmental and for-profit firms. The financial highlights are included in this section. Within the financial highlights section, the total of net assets is also generally discussed, which is calculated as total assets minus the entity's total liabilities. This is included because it is one of the main indicators of overall financial performance. The MD&A section generally details the changes in net assets, including the details regarding asset and liability accounts. This benefits for-profit and non-profit entities alike primarily due to the investors and stakeholders.
Both types of entities have various investors and stakeholders. By disclosing the financial highlights and including the net assets, the ...
The solution provides five examples of the types of information to be addressed by management in its discussion and analysis (MD&A), and discusses how this information may be beneficial or non-beneficial in the for-profit arena.