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Financial statement discussion and analysis assists users to understand the financial position, financial performance, and cash flows presented in an entity's general purpose financial statements. It also enables users to gain further insights into the operations of the entity, from the perspective of the entity itself. RPG 2 provides guidance for presenting such information.
While the form and content of the information depends on the nature of the entity and its regulatory environment, financial statement discussion and analysis will generally include:
"Financial statement discussion and analysis presented in accordance with RPG 2 represents good practice", explained IPSASB Chair Andreas Bergmann. "It sets out the status, scope, and reporting boundary for the information. RPG 2 is intended to encourage more public sector entities to provide users with financial statement discussion and analysis."
Dr Bergmann added, "It will promote comparability across entities that present financial statement discussion and analysis; at the same time, its flexible application will benefit entities in jurisdictions that have local requirements or regulations. The issuance of RPG 2 is an important step for the IPSASB, because it further extends our pronouncements on presentation of information beyond that presented in general purpose financial statements."