What is the discussion and management analysis?

Discussion and management analysis is an essential part of the published annual report of the company. The profit and loss statement, balance sheet, cash flow statement and the owner's own capital statement provides quantitative information on the performance of the company. On the other hand, discussion and management analysis provide qualitative information on the evaluation of the company's performance and its outlook.

The discussion provided by the management is intended to identify information that potential investors may not get read numbers in quantitative financial deadline. The Synopsis of the Recent History of the Company is used to present the environment for financial results. Summary of recent merger or acquisitions and how they influenced performance is important for understanding the current position of society.

The overview of the discussion and the analysis of management contains information on how economic or government registers have affected or could affect society. It represents an assessment of how the society gains revenue and where it operates if they arefor this information relevant to the discussion. The overall focus of the management of management is on items that could have a significant impact on the company and the basic analysis of the results of the company's operations.

management must discuss trends and risks that could affect future performance. Analysis of potential positive or negative consequences of some events helps potential investors understand the situation of society. Discussion and management analysis must also publish any current or possible litigation and how this could affect the company's financial stability. If the process occurs, the management analysis should assess whether the outcome of these actions.

6 It should discuss any derivative tools, such as the hedging contracts that the Company has entered in an effort to reduce the potential risk of price fluctuations or change of exchange courses. Contracting obligations are described in detail, PRotože affects how the company does.

Discussion and management analysis focuses on the level of liquidity of the company where and how the company approaches capital, its profitability and the probability that the rate of growth or earnings will continue. If any installment from capital is due in the near future, they must be taken into account. The analysis also evaluates any estimates of the material accounting that is included in the financial statements and explains how the changes in these estimates could affect the Results. The necessary numbers used in the financial statements are based on estimates and it is important that the management publishes the degree of security associated with estimates and impact on the company if the estimates prove to be a mistake.