Reference no: EM132663830

Question - The reading "IFRS (2010) Management Commentary: A framework for presentation" includes the following statement:

"Management commentary should provide information to help users of the financial reports to assess the performance of the entity and the actions of its management relative to stated strategies and plans for progress. That type of commentary will help users of the financial reports to understand, for example:

How resources that are not presented in the financial statements could affect the entity's operations"

Mothers Against Drunk Driving (MADD) is a not-for-profit organization with a mission to stop impaired driving and to support victims of this violent crime. No alcohol. No drugs. No victims.

Funding comes from governments, corporate sponsors, and individual donors.

Required - Referring to the IFRS principle stated above:

a) Identify one specific example of a resource that MADD would likely have that may not be presented in the financial statements.

b) Explain how the specific example you identified in part a) could be presented in the MADD MD&A as useful forward-looking information.