Educational Centre
Registered Public Accountant's Association (RPAA).
Newfoundland, Quebec, PEI, Nova Scotia, Ontario,
Alberta, Saskatchewan, Manitoba, British Columbia,
New Brunswick, Canada
YEAR-END TAX PLANNING
- YEAR-END TAX PLANNING
- 2006 REMUNERATION
- PERSONAL TAX RETURNS
- EMPLOYMENT INCOME
- BUSINESS/PROPERTY INCOME
- ESTATE PLANNING
- MARRIAGE BREAKDOWN
- FARMING
- GST
- WEB TIPS
- DID YOU KNOW...
Click Here to Read More ...
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As an introduction to the financial statements, a company's management will typically spend a few pages talking about the recent year (or quarter) and give a background on the company. This is referred to as the management discussion and analysis (MD&A). While this does not constitute the main part of the financial statements, it does give investors a clearer picture of what the company does and some key areas where the company has performed well.
Things to look out for are:
- How candid and accurate are the management's comments?
- Does management discuss significant financial trends over past couple years?
- How clear are management's comments? If executives try to confuse you with big words and jargon, perhaps they have something to hide.
- Do they mention potential risks or uncertainties moving forward?
If a company gives a decent amount of information in the MD&A, it's likely that management is being up front and honest. Withholding important information not only deceives those who read the financial statements but, in extreme cases, also makes the company liable for lack of disclosure.
Click Here to read the complete presentation. (PDF Format)
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