ACCT 540 Week 2 Homework Assignment
ACCT 540 Week 2 Homework Assignment: Review of Starbucks MD&A
The Management’s Discussion & Analysis section is the basis of observations from the SEC staff. The SEC is mandated by the Sarbanes Oxley Act (SOX) to review company at least once every three years. In this section, it articulates a summary of the company so investors get a glimpse. The section focuses on the challenges and risks that could impact either the company’s cash flow situation or the results of operations. In regards to the results, the SEC instructs the company’s management team to disclose uncertainties, trends, changes to previous statements, and analysis of the causes of these changes (Heller, 2014).
Overall, this section of Starbucks complies with the expectations of the SEC. In this section, Starbucks connects the details of 2014 as well as how it relates to previous years. …….. Starbucks debates the challenges and risks related to their company and also implying the company’s financial standing was not harmed by these challenges and risks in 2014………..
