Specifically, the following critical elements must be addressed:
I. Company Selection: Select and name the public company along with the fiscal year-end of the annual report that includes footnotes and the management discussion and analysis (MD&A) sections.
II. Footnotes: Review the footnotes of the financial statements and describe off-balance sheet financing in general or with specific examples provided within the Form 10-K of the selected company (e.g., operating lease or through special purpose entities).
III. Management Discussion and Analysis (MD&A): Review the MD&A of the annual report. Management often discusses issues of concern in this area of their report. They also include projected financial statements, which may suggest ideas about the firm’s potential for future earnings. a. Describe any management concerns listed and/or explain anything you find interesting or out of the ordinary. b. Describe any projections and/or future expectations of the management.