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Financial Management Discussion Analysis (MDA)

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Reporting Financial Management Discussion Social Reporting Reporting Analysis (MDA) Financial Reporting "It is an art of recording, classifying and summarising in a significant manner and in terms of money transactions and events which are in part at least of financial character and interpreting the results thereof"; and in 1966 AAA recognised that accounting is also explained as the "process of identifying, measuring and communicating economic information to permit informed judgment and decisions by the users of information." Management Discussion Analysis (MDA) It is a section of a company 's annual report, in which management discusses numerous aspects of the company, both past and present. …show more content…

Its activities very vitally affect the society and its members. The goods & services it produces and sells and the fact that the business provides the employment for a sizable section of the society makes the business a vital section of the society. Moreover, the business draws the benefits from the society in various forms. A business organisation would succeed only in a developed society. The society provides infra-structure and the facilities without which business cannot operate at all. Hence, in order to evolve social reporting, social accounting assumes importance in this respect. Social accounting refers to as “the process of selecting firm level social performance variable, measures and measurement procedures systematically developing information useful for evaluating firm’s social performance & communicating such information to concerned social groups both within & outside the firm. According to Ralph Estes, “Social accounting is the measurement & reporting, internal or external of information concerning the impact of an entity and its activity to the …show more content…

J.R.D. Tata, who has been instrumental in conducting the first social audit in India & perhaps in the world once remarked: “While profit motive no doubt provides main spark for any economic activity, any enterprise which is not motivated by consideration of urgent services to the community becomes outmoded soon & cannot fulfil its real role in modern society”. Besides Tata Group, the other companies which have adopted & followed the CSR in India are: BHEL, Wipro, Bajaj Auto Ltd., L&T, Sriram investments, Otis Elevator Co. India, ACC, Asian Paints, Brook Bond, Colgate Palmolive, Escorts, SAIL, ITC, etc. The contribution of these companies towards CSR encompasses various initiatives like starting social trusts, anti-pollution measures, adopting villages, family planning clinics, Training Unemployed youth, & community development activities, etc. Further, they conduct social audits on voluntary basis, provide medical, recreational facilities, develop sports, and undertake consumer education campaigns, avoiding unethical & deceptive advertising & so on. Azim Premji, Chairman of Wipro, has created enormous trust for facilitating primary & elementary education in

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