Which of the following statements,regarding the management's discussion and analysis (MD&A)part of the annual report is not correct?
A)Investors are not interested in the MD&A because it is written by the company and could present a biased view of the company's financial condition and result.
B)It often contains information that is not found in the financial data.
C)It provides forward-looking formation.
D)The MD&A is the company's attempt to explain its financial statements and to discuss its performance.

Question

Quizplus · Accepted Answer

This statement is incorrect because investors are interested in the MD&A as it provides additional insights and explanations about the company's financial performance and future prospects. However, investors do need to be aware that the MD&A is written by the company and may present a biased view.

Which of the Following Statements,regarding the Management's Discussion and Analysis