Cross-country Comparison On The Evolvement Of MD&A And Advice On How To Improve It In China

The information disclosed in management discussion and analysis (MD&A), is regarded to be most valuable. Compared with financial statement and footnotes, MD&A supplements the information about the financial state and operational outcome described in the financial statement, analyses the material trend and factors, achievement and market position as well. It enables investors to see the company through the eyes of management, complete the financial information, satisfies the investors' higher requirements regarding the relevance and forward-looking information. With the information in MD&A, the investors are able to forecast a company's future achievement and estimate whether the company is worth investing.Take a general view of the world; most country has its disclosure requirement of MD&A, though their names and requirement are different. At present, the research of scholars overseas covers almost all aspects and is in-depth, while the research of cross-country of MD&A has still not been done in China. This essay, which reviewed and compared the evolvement of MD&A in different countries, wish to give constructive advice as for the improvement of MD&A in China. This essay reviews the evolvement of MD&A of different countries; tries to analyze the problem mentioned above and give some feasible suggestions to improve MD&A disclosure requirements in China.There are five parts in all. The introduction of MD&A. Chapter 2 reviews the history of MD&A disclosure and summarizes the characters of MD&A. Thirdly follows Chapter 3 about the history and characters of OFR in Britain. Then Chapter 4 introduces briefly the content of MC and the evolvement of newly developed areas and compares the MD&A rules mentioned above. Last not the least, Chapter 5 gives some feasible suggestions to improve MD&A disclosure requirement in China.This essay is intended to analyze the reason that give rise to this disclosure requirement, the process, important laws, material case,problem and forward direction of American, British and newly developed area; to compare the diversity of different framework, to find out which system helps management to provide volunteer disclosure and detailed disclosure of future programming; improves the investors' confidence and help the supervisor to supervise effectively, and then give feasible advice on how to improve it in China.