The Federal Accounting Standards Advisory Board (FASAB) has proposed updates to the guidance for the management's discussion and analysis (MD&A) section of financial reports by federal government agencies.

The proposal “would provide a comprehensive set of standards to guide management in how to present an MD&A that is balanced, integrated, concise, and understandable about the reporting entity’s organization and mission; financial position and condition; operating performance, opportunities, and risks; and systems, internal controls, and compliance with applicable laws and regulations," the FASAB's exposure draft states.

The proposed update aims to provide a comprehensive set of standards to guide managers on how to present an MD&A about the reporting entity's organization and mission; financial position and condition; operating performance; opportunities, and risks; and systems, internal controls, and compliance with applicable laws and regulations. 

The proposed standards are aimed at providing a principle-based approach that merges and updates relevant content from current standards and would “provide more flexibility for reporting MD&A, reduce preparer burden and redundancy, and enhance transparency to present an MD&A that is balanced, integrated, concise, and understandable,” FASB Chairman George A. Scott said in a statement.

Responses are requested by December 7, 2023. The questions are available to answer online.