Management Discussion and

Analysis
GROUP 6
-Sukeerti Shrestha
What is an annual account?

 Financial summary of company’s activities during

the year, the managerial analysis of current
position and the future prospects
 Prepared at the end of the fiscal year
 For external users
What is the Managerial Discussion
and Analysis section?
 Required to be included in the annual reports of public
companies by the Securities and Exchange Commission(SEC)
and Financial Accounting Standards Board(FASB)
 Discusses financial statements and how the company is doing
 Overview of future prospects and trends
 Use of qualitative and quantitative measures to analyze the
company’s performance over the past twelve months
 FSAB: “MD&A should provide a balanced presentation that
includes both positive and negative information about the
topics discussed.”
 Auditors are not required to audit this section
 Objectives
 Enables investors to see the company through the eyes of
the management
 Provide information about the company to external users
 Addresses the concerns of the investors and what the
company is doing in response to it
The MD&A should address…
According to the FASB.
 The company’s mission and organizational
structure
 The performance goals and results
 The financial statements
 The systems, controls, and legal compliance
 The future effects on the entity of existing,
currently-known demands, risks, uncertainties,
events, conditions and trends
 Principles

According to the Canadian Performance Reporting Board,

2002:
 Through the eyes of the management
 Integration with financial statements
 Completeness and Materiality
 Forward-Looking Orientation
 Strategic Perspective
 Usefulness
 Disclosure Framework

According to Canadian Performance Reporting

Board
 Core business and existence instinct
 Key performance drivers
 Capability to deliver results
 Results and outlook
 Risk
 International vs domestic
Columbia Sportswear vs Butwal Power Company

Name Columbia Sportswear BPC

Total Assets $ 2,212,902 NPR 1961.7 million
Net Income/ $105.1 NPR 668 million
Profit million
Net Tax Profit $154.4 million NPR 668 million
Name Columbia BPC
Sportswear
Revenue $263.0 million NPR 662.9 million
Net Sales Increase by 2% (2% total
constant- sale has decreased
currency), by 4 %
Earning per Share $1.51 NPR 37.02
 References
 https://www.myaccountingcourse.com
 https://www.investopedia.com/terms/m/mdanalysis.asp
 https://www.sec.gov
 Financial Accounting: The Impact on Decision makers - Porter and Norton
 Annual Report of Butwal Power Company
 Annual Report of Columbia Sportswear Company
THANK YOU!!

ANY QUESTIONS?