DISCUSSION TOPIC: What information is contained in the management report
and why is this report important?
PLEASE RESPOD TO THE FOLLOWING
Responses 75 100 words
provide additional insights and/or raise questions that require reflection. Shares multiple
points of view. References are listed in APA format
Example: Hi DB I agree with your discussion
DB
The information that is in the management report is performance, identifies trends, analyses data,
aligns performance to overall goals, and helps them make better-informed decisions for the
organization. Basically, it helps them to see the companyàworth. Therefore, by these concepts
surveys indicate that users differ in their needs for information and that not all companies should
report all elements of information. Thus, some contend that companies should report only
information that users and preparers agree is needed in particular circumstances (Chapter 24-2).
However, according to FASB, the financial statements should be carefully read for information
about off-balance-sheet commitments, future financing needs, and the quality of a companyÊearnings (Chapters 22 to 24-7). GAAP requires that the general-purpose financial statements
include information basis of segmentation.
Reporting is important because it allows businesses to have full knowledge of their financial
situation. For example, knowing how well the business is doing, keeping track of transactions,
maintaining a budget, assessing the financial situation, and determining the profit of a specific
product. Additionally, reporting is a process for companies and investors, to provide key
information that shows financial performance. Government and private regulatory institutions
also monitor financial reporting to ensure fair trade, compensation, and financial activities.
Hence, for information to be relevant, it must be available to decision-makers before it loses its
influence on their timeliness of decisions. Interim reporting is an excellent example of this
concept. Lastly, an audit report provides useful information to the investor. As a matter of the
fact, the first item to be checked is the auditoràopinion to see whether or not it is a good one.
while on the other hand, fraudulent financial reporting usually occurs because of conditions in a
companyàinternal and external environment (Chapter 24).
Hi JF I agree with your discussion
JF
A management report is a compilation of operational data and data from multiple
company divisions prepared to help the business make better decisions (Calzon, 2022). The
report also covers liquidity and capital resources. Management analyzes major events and
uncertainties that impact operations, liquidity, and capital resources (Kieso et al., 2019). The
management report should also contain price changes and inflation that impact financial
statements. Accounting procedures or policies that necessitate management’s subjective
assessment of uncertainty, which can have a material impact on the financial results, are
contained in the report (Kieso et al., 2019). A project’s or initiative’s impact on budgets, revenue,
the strategic plan, and the business’s overall success is also demonstrated in management reports.
The management report is vital because it provides up-to-date information regarding the
organization. It, therefore, facilitates profits and growth of the company. It helps the organization
avoid unnecessary expenses and losses. Moreover, the management report is essential because it
can predict missed KPIs or indicate that a project is succeeding and could use more funding.
Auditors review the management reports to analyze whether or not it contains any significant
discrepancies, which makes it a critical report. Overall, it gives decision-makers information
about the organization’s performance, enabling them to choose the best course for boosting
operational effectiveness and making wise choices to maintain competitiveness (Calzon, 2022).

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