Management Discussion and Analysis

Question: Discuss about the Management Discussion and Analysis. Answer: Management discussion and analysis (MDA) is a section of a business annual report in which an overview of previous year operations and business performance is provided. MDA plays an important role for financial analyst as it helps him to figure out all the information of financial condition of an organization. It uses by analyst to provide information to clients. It helps analyst to enhance the financial disclosure and provide the financial information. It is required to understand the financial condition and operations result. An analyst helps investors using MDA to look into the company through managements eye by providing them companys financial statement. A context is provided to analyst by using MAA approach to reach into a conclusion. It helps analyst to getting the information about the quality and potential variability of a companys financial detail like cash flow and companys earnings. It also helps an investor to ascertain that past performance indicative to future. MDA hel ps the financial analyst to give the narrative explanations of the financial statement of a company (US Security exchange, 2003). With the help of it, financial analyst can improve overall disclosures provided by him for investors and company as well. It helps analyst to check each and every thing related to financial condition like annual reports, companys liquidity, capital expenditure etc. It helps analyst to identify the change in fair value attributes to change in value technique. It helps an analyst to indicate the maturity of current balance sheet based on either estimated price or fair value (Friedlob Schleifer, 2003). References Friedlob, G. Schleifer, L (2003). Essentials of Financial Analysis. US: John Wiley Sons. US Security exchange (2003). Commission Guidance Regarding Management's Discussion and Analysis of Financial Condition and Results of Operations. Retrieved on 14 November 2016 from https://www.sec.gov/rules/interp/33-8350.htm.