Management's Discussion and Analysis (MD&A) serves as a vital narrative within financial reporting, offering invaluable insights that extend beyond the numerical data outlined in financial statements. It's a cornerstone for stakeholders seeking a deeper understanding of a company's performance, strategies, and potential risks. The MD&A facilitates a clear dialogue between management and investors, offering context, interpretation, and forward-looking perspectives in straightforward terms. In essence, MD&A bridges the gap between financial figures and the real-world dynamics shaping a company's operations and outlook.

This course is being offered to:

• Provide practical guidance on preparing and reviewing impactful MD&A reports;
• Focus on aligning financial data with narrative context;
• Empower participants to communicate a company's financial health effectively;
• Cover core principles, a comprehensive disclosure framework, and the art of tailoring MD&A content;
• Identify best practices; and
• Enhance participants' abilities to cater to primary users of financial reports.

This workshop aims to empower you with the skills and knowledge needed to prepare and review an effective MD&A. By exploring MD&A's objectives, principles, and elements, you will be better equipped to communicate the company's financial story to stakeholders and fulfill their reporting responsibilities effectively.

Topics Include:

• Principles-Based Disclosure: Understand how MD&A operates under a principles-based framework, allowing flexibility to describe financial matters impacting the company.
• Value Communication: Recognize the MD&A's potential as a powerful tool for management to communicate value creation, stewardship of resources, and alignment with strategic objectives.
• Inherent Limitations: Acknowledge the limitations of MD&A, as it captures information at a specific point in time and may not include all material information about the company.
• MD&A Objectives: develop a comprehensive framework consisting of key elements:
  • Core businesses
  • Objectives and strategy
  • Capability to deliver results
  • Results and outlook
  • Key performance measures and indicators
• Disclosure Principles: Learn how MD&A fits into continuous disclosure and how to update information across interim and annual reports while avoiding duplication.

NOTE: This course description has been revised and reflects updates for 2024. If you have any questions, please contact pdevents@cpaontario.ca.

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By the end of this course, participants should be able to:

• Enhance Understanding: Deepen participants' comprehension of MD&A as a tool to explain a company's financial condition, changes, and results of operations.
• Provide Context: Explore the role of MD&A in offering context to financial information, enabling stakeholders to analyze financial statements more effectively.
• Convey Quality and Variability: Equip participants with the skills to communicate information about the quality and potential variability of a company's earnings and cash flow, aiding stakeholders in assessing future performance.
• Avoid Boilerplate: Emphasize the importance of tailored and specific MD&A disclosure that reflects the unique circumstances of each registrant.
• Identify Tools and Resources Available: Leverage existing tools and resources to assist in developing effective MD&A reporting.