FINANCIAL DISCUSSION AND ANALYSIS

Financial statement discussion is required to include specified minimum content to promote comparability among entities and consistency within an entity over time. Entities determine the matters and level of detail to present—specific detailed disclosure and presentation requirements are not provided. When information that is required to be included in financial statement discussion and analysis is presented or disclosed in the financial statements, it is not required to be reproduced in the financial statement discussion and analysis. Financial statement discussion and analysis is required to include the following minimum content, while allowing entities to report on specific information most relevant to the entity:  An overview of the entity helps users to understand the entity and how the environment in which it operates affect its financial statements.  Information about the entity’s objectives and strategies enables users of the financial statements to understand the entity’s priorities and to identify the resources that must be managed to achieve its objectives.  An analysis of the entity’s financial statements including:  A description of the significant events, trends, conditions, and factors that affected the current period financial statements to enhance users’ understanding of the financial statements.  Analyses of variances and trends for those financial statement items which are important and significant to enhancing users’ understanding of an entity’s financial position and performance and changes in financial position and performance over a period of time.  Information about the entity’s risks and uncertainties helps users to evaluate the impact of risks in the current period as well as expected outcomes.(Source-IFAC)