While it may be easier to do the same thing over and over, this change is worth considering.
For financial years that begin on or after July 1, 2015, venture issuers will have the option to provide “quarterly highlights” instead of full interim MD&A. While issuers with significant revenue may want to continue using the full interim MD&A , other issuers should pay close attention to this option.
Venture issuers opting to provide quarterly highlights will provide a short discussion of all material information about their company’s operations, liquidity and capital resources. The discussion should include:
• an analysis of the company’s financial condition, financial performance and cash flows and any significant factors that have caused period to period variations in those measures; how long will your money last?
• known trends, risks or demands; what is happening in your marketplace?
• major operating milestones; what did your company achieve in the quarter, what do you forsee next quarter?
• commitments, events or uncertainties that have materially affected your company’s operations, liquidity and capital resources in the interim period or are likely to have a material effect going forward; what will it take for your company to succeed?
• any significant changes from disclosure previously made about how the company is going to use proceeds from any financing and an explanation of variances; did we use our money as we disclosed? and
• any significant transactions between related parties that occurred in the interim period.
The goal of MD&A is to provide a narrative explanation of how your company performed in the period covered by the financial statements, plus upcoming prospects. The discussion should short, focused, balanced and key on material points and milestones achieved or which need to be achieved.
The new rules are discussed in National Instrument 51-102 and its Companion Policy.