In addition to the financial statements,MD&A (management discussion and analysis)are appended to the financial statements to inform users of management's expectations for the foreseeable future,as well as to provide management's assessment of the financial results.MD&A is prepared primarily because it is
A)an additional piece of evidence used by auditors to assess the financial statements.
B)generally required by securities regulators in Canada.
C)an unbiased view of the prospective future results of the company.
D)required so that the company can borrow more funds or sell more shares to the public.

Question

Quizplus · Accepted Answer

MD&A is generally required by securities regulators in Canada as part of the disclosure requirements for publicly traded companies. It provides information to users of the financial statements about management's expectations for the future and their assessment of the financial results, allowing investors to make informed decisions. It is not primarily prepared for auditors or for the purpose of borrowing funds or selling shares. MD&A may be biased based on management's perspective and interpretation of the company's performance.

In Addition to the Financial Statements,MD&A (Management Discussion and Analysis)are