Methodology | FSMDA.ca
FSMDA · METHODOLOGY
Evidence hierarchy · source-locking · period-by-period continuity

Our filing-review methodology.

This page sets out the research controls behind FSMDA reviews: which records we rely on, how we build financial continuity, how we treat errors and amendments, when an issue becomes an open question, and how later evidence changes the record.

FS & MD&A first Source-locked findings Annual audits control annual accounting Later corrections remain visible
Core methodology

Start with the filing record and keep each conclusion within the evidence

FSMDA treats financial statements and MD&A as the primary continuous-disclosure record, then uses supporting filings only where they materially clarify, test or reconcile that record.

1

Company Story

Describe strategy, capital use, asset progression and financial condition.

2

Filing Review

Test math, continuity, capitalization, accounting and presentation.

3

Open Questions

Publish material questions only where the public bridge remains incomplete.

4

Resolution

Record what later evidence corrected, clarified, narrowed or left unresolved.

Errors are not allegations. Questions are not conclusions. Corrections are part of the research.
Evidence hierarchy

Which records control which questions?

PriorityRecordPrimary use
1Filed financial statementsAccounting recognition, assets, liabilities, equity, cash flow, gains/losses, carrying values.
2Filed MD&AManagement's explanation of strategy, liquidity, project status, risks and subsequent events.
3Amended filingsCorrections and later revisions to the original public record.
4Exchange / SEDAR+ formsTransaction terms, securities issuances, financing chronology, closing stages and monthly activity.
5Agreements / registries / official recordsLegal title, contractual rights, closing conditions, legal obligations and securities status.
6Issuer news releasesWhat management publicly announced or represented.
7Counterparty filingsDirect transaction context where the same deal crosses issuers.
Important: a press release establishes what management said. It does not replace later accounting, legal-title or closing evidence.
Source control

Material observations are source-locked

For each material item, FSMDA aims to preserve enough source detail that the observation can be checked again later without reconstructing the entire study.

Document identity

Issuer, document title, filing date and financial period.

Exact location

Page, note, table, section or schedule where the information appears.

Resolution chain

Later amendment, audit or supporting record that corrected or clarified the item.

Rule: do not rely on memory where the source can be checked.
Initial issuer review

Build enough history to establish the baseline

A new issuer review typically covers approximately 18–24 months, although the required scope depends on the company and the filing record.

Step 1

Oldest audited year

Establish opening finances, projects, share capital, debt and strategy.

Step 2

Q1

Bridge changes from year-end into the first interim period.

Step 3

Q2 / Q3

Track continuity, new financings, project movement and changes in disclosure.

Step 4

Next audit

Test interim estimates, impairments, equity, reclassifications and corrections.

Step 5

Latest period

Bring the company story current and define open questions.

Every filing period

Standard review checklist

  • Cash and cash-flow tie
  • Working capital and liquidity
  • Receivables
  • E&E / property / intangible assets
  • Accounts payable and accruals
  • Loans and debt
  • Related-party balances
  • Revenue
  • Gross profit, where applicable
  • Consulting / management fees
  • Professional fees
  • Share-based compensation
  • Impairments
  • Transaction gains/losses
  • Opening shares
  • Share issuances
  • Cancellations
  • Options and warrants
  • MD&A strategy and project status
  • Risks and commitments
  • Legal proceedings
  • Subsequent events
Level 2 methodology

Reconcile the filing before escalating the issue

Share-capital bridge

Opening shares + issuances − cancellations = expected closing shares.

Cash bridge

Opening cash + operating/investing/financing movement = closing cash.

Asset bridge

Opening balance + additions − disposals/impairments/reclassifications = expected closing balance.

FS vs MD&A

Compare reported values, periods, transaction status and management narrative.

Level 2 treatment: show the original number, reproduce the difference, identify any later correction, and do not infer why the error occurred unless the record explains it.
Annual control point

How annual audits interact with interim filings

Audited annual financial statements normally control annual accounting when an interim record conflicts with the final year-end accounting.

  • Preserve the original interim error or discrepancy.
  • Show the annual correction or reclassification beside it.
  • Check whether the incorrect number later reappears in comparative columns.
  • Do not assume the annual audit explains every earlier discrepancy.
Resolution format: Originally flagged → Later corrected → Resolved.
Attribution control

Officer chronology matters

FSMDA tracks the filing period, filing date, certification date, CEO, CFO and auditor before attributing a filing issue to a management period.

What we do

Describe observed changes in filing quality or disclosure under the correct officer chronology.

What we avoid

Attributing a filing to an officer who was not yet in the role, or inferring competence, motive or intent from a filing mistake.

Relationships and cross-issuer evidence

Use transaction-specific labels and keep cross-issuer work controlled

Director, officer, consultant, advisor, finder, vendor, lender, insider and related party are not interchangeable terms.

  • Use the label supported by the actual filing or agreement.
  • Do not assume someone is an insider across issuers because they are an insider elsewhere.
  • Do not infer hidden control, concert-party status or non-arm's-length status without evidence.
  • Use counterparty filings where they materially clarify the same transaction.
  • Label broader network research as cross-issuer context, not an issuer-specific conclusion.
Publication discipline

Language should show what the record supports

Preferred wording

  • “The filing reports…”
  • “The audited statements state…”
  • “The amounts do not reconcile…”
  • “The public record reviewed does not explain…”
  • “Possible explanation — not confirmed…”
  • “Later filing corrected…”

Avoid without authoritative support

  • fraud
  • manipulation
  • concealment
  • collusion
  • hidden control
  • self-dealing
Level 4 methodology

Later evidence updates the record without erasing history

Resolution can come from management, but it can also come through the normal disclosure process.

Issuer clarification

Management or IR provides an explanation and supporting record.

Subsequent filing

A later FS, MD&A, annual audit or amended filing supplies the missing bridge.

Official record

A registry, transfer-agent record, agreement, legal filing or directly relevant counterparty record resolves the question.

Correction policy: preserve the original question, show the date and source of the later evidence, and update the status to Resolved, Partially Resolved, Corrected in Subsequent Filing, Superseded, Withdrawn or Still Open.
Limits

What this methodology does not claim to be

FSMDA is a public-record research project. It is not an audit opinion, legal opinion, regulator finding, technical report or investment recommendation.

Public filings can contain incomplete, amended or later-corrected information. Where the record stops, FSMDA should say so rather than invent the missing explanation.

Level 1 explains the company. Level 2 tests the filings. Level 3 publishes what remains unanswered. Level 4 records what later evidence clarified.

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