Which of the following is NoT one of MD&As purposes?
To improve overall financial disclosure and provide the context within which financial statements should be analyzed
To provide information about the guality and potential variability of a company's earnings and cash flow so that investorscan ascertain the likelihood that past performance is indicative of future performanceTo provide a narrative explanation of a company's financial statements that enables investors to see the company
through the eyes of management
To provide a platform for companies to provide personal investment advice to individual shareholders.
Management's Discussion & Analysis (MD&A) section of a company's annual report serves several purposes. One purpose it does not serve is to provide a platform for companies to provide personal investment advice to individual shareholders. The MD&A is focused on improving overall financial disclosure, giving context to the financial statements, explaining the quality and potential variability of a company's earnings and cash flows, and offering insight into how management perceives the company's performance. Therefore, the option "To provide a platform for companies to provide personal investment advice to individual shareholders" is not a purpose of an MD&A.
