THE MANAGEMENT`S DISCUSSION AND ANALYSIS (MD&A) SECTION OF AN ANNUAL REPORT
What does the management`s discussion and analysis (md&a) section of an annual report address to the user?
The Management`s Discussion and Analysis (MD&A) section of an annual report must be included in SEC filings. The content of the MD&A section is required by regulations of the SEC. The MD&A contains standard financial statements and summarized financial data for at least 5 years. Other matters must be included in annual reports to shareholders and in Form 10-K filed with the SEC. It addresses in a nonquanitified manner the prospects of the company. The SEC examines it with care to determine that management has disclosed material information affecting the company`s future results. Disclosures about commitments and events that may affect operations or liquidity are mandatory. Thus, the MD&A section pertains to liquidity, capital resources, and results of operations.