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[QUOTE="Yakub02, post: 305467, member: 94426"] Management commentary is useful to the users of financial statements because it provides them with additional information that supplements the figures in the accounts. It also gives them an insight into how management view the performance of the business and what they hope to achieve in the future. An assessment of the risks and opportunities facing the entity can also be useful for an investor who may want to make a decision as to whether to continue investing in the entity. Management commentary is common in many countries. In the European Union, companies are required to include a business review in their annual report and accounts. A business review is a management commentary, and might sometimes be called an Operating and Financial Review (OFR). In the UK there is a statement of best practice that gives guidance on the content and presentation of information in an OFR, which is consistent with the statutory requirements for the content of the business review. [/QUOTE]
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