what is management discussion and analysis md a 
management discussion and analysis md a is a section of a public company s annual report or quarterly filing the md a addresses the company s performance in this section the company s management and executives also known as the c suite present an analysis of the company s performance with qualitative and quantitative measures investopedia eliana rodgersunderstanding management discussion and analysis md a in the management discussion and analysis md a section of the annual report management provides commentary on financial statements systems and controls compliance with laws and regulations and actions it has planned or has taken to address any challenges the company is facing management also discusses the upcoming year by outlining future goals and approaches to new projects the md a is an important source of information for analysts and investors who want to review the company s financial fundamentals and management performance the md a is just one of many sections required by the securities and exchange commission sec and the financial accounting standards board fasb to be included in a public company s annual report to shareholders a company that issues stock or bonds to the public at large must register its offerings with the sec which oversees public companies compliance with u s securities laws and ensures investors are given adequate information about companies they invest in the sec mandates 14 items to be included in the 10 k report the md a section is item 7 the fasb is a nonprofit private regulatory organization which the sec has designated as the body responsible for promulgating accounting standards for public companies in the united states fasb outlines its requirements for the md a section of filings securities law dictates that companies must hire an independent auditor to verify a company s financial statements such as its balance sheet income statements and statement of cash flows auditors perform test work to determine if the financial statements are materially correct but these certified public accountants cpas do not audit the md a section the md a represents the thoughts and opinions of management and provides a forecast of future operations therefore these statements can t typically be authenticated the md a section is not audited and includes the opinions of management that said the md a section must meet certain standards according to fasb md a should provide a balanced presentation that includes both positive and negative information about the topics discussed even if management is giving its opinion on the state of its business competition and risks these statements must be based on fact and there must be an attempt to paint a balanced picture of the company s future prospects 