The term Management's Discussion and Analysis refers to a section of the annual report that provides investors with insights into how the business performed in the past, its current financial condition as well as projections of future performance. Management's Discussion and Analysis (MD&A) is normally included with a company's annual report or Form 10-K, allowing the investor-analyst to understand how the leaders of the business believe the company has performed over the last year and what the future may bring.
Also referred to as MD&A, Management's Discussion and Analysis of Financial Condition and Results of Operations is a required disclosure made by companies that fall under the jurisdiction of the Securities and Exchange Commission (SEC). The MD&A provides an overview of the performance of a business in the prior year as well as insights into its future prospects. Typically included as part of the company's annual report or Form 10-K, the document attempts to provide investors with a balanced view of the corporation as seen through the eyes of its management team.
While the information appearing in the MD&A is unaudited, it does help investors to understand how the company's management team reacts to both challenges and opportunities. Generally, this discussion will touch on several topics, including:
The MD&A should present the reader with the most significant items up-front, and focus its analysis on information that is material to the finances of the company.
safe harbor, management's discussion and analysis
Critical Accounting Estimates, Liquidity and Capital Resources, variable interest entities, regulatory assets, regulatory liabilities, financing receivables, asset retirement obligation, related-party transactions, mine safety disclosures