Which of the following statements concerning the management discussion and analysis (MD&A)of a company's financial condition is true?
I.It should cover the financial statements and other statistical data for the most recent three-year time span.
II.It should make year-to-year comparisons of material changes in the line items.
III.Management need not explain the cause(s)of the material changes.
IV.Disclosure of material off-balance sheet transactions,arrangements,and obligations is required in each annual and each quarterly report.
A)I,II,and IV
B)II and III
C)I,III,and IV
D)I,II,III,and IV

Question

Quizplus · Accepted Answer

Statement I is true as MD&A should cover the financial statements and other statistical data for the most recent three-year time span. 
Statement II is true as MD&A should make year-to-year comparisons of material changes in the line items. 
Statement III is false as management must explain the cause(s) of the material changes. 
Statement IV is true as disclosure of material off-balance sheet transactions, arrangements, and obligations is required in each annual and each quarterly report. Therefore, options B and C are incorrect. 
Hence, the correct answer is A.

Which of the Following Statements Concerning the Management Discussion and Analysis