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Sarbanes-Oxley News & Developments
SEC Releases Guidance Regarding MD&AThe guidance reminds companies of existing disclosure requirements.
> > The SEC recently issued an interpretive release providing guidance regarding Management Discussion & Analysis of Financial Condition and Results of Operations, commonly called MD&A, included in reporting companies disclosure documents.
The guidance reminds companies of existing disclosure requirements and provides additional guidance, designed to elicit more informative and transparent MD&A that satisfies the principal objectives of MD&A: (1) to provide a narrative explanation of the financial statements of a company that enables investors to see the company through the eyes of management;(2) to enhance the overall financial disclosure and provide the context within which financial information should be analyzed; and (3) to provide information about the quality of, and potential variability of company earnings and cash flow, so that investors can ascertain the likelihood that past performance is indicative of future performance.
Source: SEC
Published:2004-01-05
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