Yakub02
Banned
Management commentary may help users to understand:
the entity’s risk exposures, its strategies for managing risks and the effectiveness of those strategies;
how resources that are not presented in the financial statements could affect the entity’s operations;
how non-financial factors have influenced the information presented in the financial statements. Management commentary should:
provide management’s view of the entity’s performance, position and development;
supplement and complement information presented in the financial statements; and
be orientated to the future. The relevant focus of management commentary will vary with facts and circumstances but a decision-useful management commentary should include information that is essential to an understanding of:
the nature of the business;
management’s objectives and strategies for meeting those objectives;
the entity’s most significant resources, risks and relationships;
the results of operations and prospects; and
the critical performance measures and indicators that management uses to evaluate the entity’s performance against stated objectives.
A company may be exposed to a wide range of risks which might affect its ability to achieve its corporate objectives.
Risk management is a corporate governance issue. A board should safeguard the assets of the company and protect the shareholders’ investment from a loss of value. In order to achieve this, the board should manage risks.
the entity’s risk exposures, its strategies for managing risks and the effectiveness of those strategies;
how resources that are not presented in the financial statements could affect the entity’s operations;
how non-financial factors have influenced the information presented in the financial statements. Management commentary should:
provide management’s view of the entity’s performance, position and development;
supplement and complement information presented in the financial statements; and
be orientated to the future. The relevant focus of management commentary will vary with facts and circumstances but a decision-useful management commentary should include information that is essential to an understanding of:
the nature of the business;
management’s objectives and strategies for meeting those objectives;
the entity’s most significant resources, risks and relationships;
the results of operations and prospects; and
the critical performance measures and indicators that management uses to evaluate the entity’s performance against stated objectives.
A company may be exposed to a wide range of risks which might affect its ability to achieve its corporate objectives.
Risk management is a corporate governance issue. A board should safeguard the assets of the company and protect the shareholders’ investment from a loss of value. In order to achieve this, the board should manage risks.
