The mission of the U.S. Securities and Exchange Commission is to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation (U.S. Securities and Exchange Commission, n.d.). In order to protect investors, the SEC mandates certain filings to be made by public companies in order to disclose information relevant to the going concern of the company. These disclosures are pertinent in making investment decisions by the users of these statements. Forms 10-K, 10-Q, and 8-K are required fillings of publicly held companies where the 10-K is filed annually with audited financial statements along with a business summary, the financial results, corporate governance issues and exhibits; the 10-Q is a simplified …show more content…
Due 90 days after the end of the company’s fiscal year, the 10-K contains audited financial statements along with a detailed report about the happenings of the company. Within the 10-K an investor will find all the information as required by the SEC regarding the operations and financial standing of the company. The four main parts of the 10-K include a description of the company and business; the company’s financial results of operations; corporate governance issues; and exhibits that include the audited financial …show more content…
This description of the company will include what types of products and services are provided by the company, if the company owns any subsidiaries including a description of each, and what type of market the company operates in. An investor will also find discussions about direct competitors, any specific regulations that apply to the company or industry, any labor issues, and any other information that would be pertinent to know about the operating health of the company. Also included in the business summary are the most significant risks that apply to the company itself, the industry it operates in, the region it conducts business in, or the entire economy. Unresolved comments from the SEC staff on previously filed reports will be found in the business summary section of the 10-K. Unresolved comments include any inquiries the SEC may have raised about previously filed statements that have yet to be resolved at the time of the company’s current filing of the 10-K (U.S. Securities and Exchange Commission, 2011). Two final sections included in the business summary are a detailed listing of any significant properties the company owns and any significant pending legal
“provides an overview of the previous year of operations and how the company fared in that time period” and will usually also, briefly, discuss the projections for the next year, outline future goals for the company, and briefly address any upcoming projects (Investopedia, n.d.).
Group financial statements Group consolidated income statement Group statement of other comprehensive income Balance sheets Cash flow statements Statements of changes in equity Notes to the accounts Operating and financial statistics Fleet table
The SEC requires that an annual report, Form 10-K,are filed. This form has detailed financial information, operating information, and managements responses to specific questions about the company’s operations. The SEC also requires that all relevant business and financial information be disclosed to potential shareholders any time new securities are being issued. Lastly, Form 3 and Form 4 must also be filed with the SEC. Form 3 is a personal statement of beneficial ownership of securities of a company, for any officer, director, or principle stockholder of a company. Form 4 is a record of any change of ownership within that company (SEC, 2016). Companies must also disclose certified financial statements, including a two-year audited balance sheet, and a three-year audited statement of income and cash flows. Furthermore, the annual reports are required to contain five years of financial data, including “net sales, income or loss from continuing operations, total assets, long-term obligations, and redeemable preferred stock, and cash dividends declared per common share” (SEC,
– 10-K for 2009, filed February 19, 2010 – 10-Q for Q2 2010, filed August 5, 2010
A lot of organizations must report a 10-K every year and they must file it with the U.S. Securities and Exchange Commission. Other organization will file another form to the U.S. Securities and Exchange Commission. The U.S. Securities and Exchange Commission mandates that there are certain topics that must be on the 10-K form, and that organization send it to them annually and also to their shareholders annually (Security, 2011).
Due to personal reasons, United Master Executive (MEC) President, Ken Diaz, was not in attendance at the Summer 2017 regular meeting of the United MEC. The President’s Report was given by both the MEC Vice-President, Adam Novish, and MEC Secretary-Treasurer, Jeff Heisey. Adam addressed the United MEC and provided several updates on issues currently impacting Flight Attendants. He gave a brief overview of the state of the airline industry, including the announcement of John Slater who is the successor of Sam Risoli.
As a result, the relative financial health of these entities emerge as one reasonably ascertained by examining a variety of historical financial statements reported to the federal government, stockholders of record and the public at large. Official 10Ks submitted to the SEC help formulate the backbone of the company’s financial performance. And while alternative sources like a company’s annual report contain the same fundamental information, the derivatives hail from the same 10K. Although not difficult to comprehend, those with limited knowledge will require some basic understanding of corporate finance to establish a reasonable picture of the company’s fiscal health. Fortunately, wealth of free information now serves as guidance and commonly exists all across the Internet from online brokerages and financial self-help websites just to name a few.
One of the biggest downsides of a company going public is not only the costly price attached, but also the stressful drawn-out process of documents and regulations to follow. Going public is process private firms make when they issue shares of stock to the public for the first time. If a company wants to share stock to the public, it has to conduct an initial public offering (IPO). An IPO is a process that takes weeks or months for preparation. The process starts with retaining a law firm to engage in the tedious detailed disclosure documents needed for the IPO prospectus that is included in the Securities Exchange Commission Form S-1. The Securities Exchange Commission (SEC) overseas publicly trades companies and there are various documents that need to be disclosed which include financial statements, management information circulars, management’s discussion and analysis (MD&A), earnings release and prospectuses. Most disclosure documents must be filed with securities regulator. However, some don’t have to be filled, but instead posted on the funds website or sent to investors, these include quarterly portfolio disclosure. There are two main acts under the SEC. The first is The Securities Act of 1933 which is designed to prevent fraud in the sale of securities. It requires initial disclosures about securities, such as stocks, that are going to be sold to the public (Federal regulation of publicly traded companies, n.d.)
Regulators and Accounting Standards Board have long struggled with the developing comprehensive reporting standards that will improve transparency, reliability, completeness, and comparability of the financial statements prepared by the company. The need to promote investor confidence in the market makes it important to improve the financial reporting standards so that investors are able to obtain accurate, reliable and complete information in order to make informed judgments. This paper reviews recent attempts by SEC and FASB to improve the reporting of off-balance sheet transactions, variable interest entity, and non-controlling interest.
Normalized Historical Balance Sheets Summary Historical Statements of Cash Flows Normalized Earnings and Net Cash Flow Summary Normalized Interim Financial Statements 9 9 9 10 10 11 11 12 13 14 ANALYSIS OF HISTORIC FINANCIAL STATEMENTS Business Common-Size Financial Statements Business vs. Industry Common-Size Financial Statements Business Financial Ratio Analysis Business vs. Industry Financial Ratio Comparison 16 16 17 19 21 VALUATION OF SAMPLE INDUSTRIES, INC. Overview of Valuation
Public corporations in the United States are required to file annual reports with the Securities and Exchanges Commission which provide information in regards to current and future business ventures and a set numerical data that demonstrates the financial performance of a corporation via three types of financial statements (Melicher and Norton, 2013). The statement of income (or operations), the balance sheet, and the statement of cash flows are very important as they together provide vital information on the financial health of a corporation ensuring continued support from investors as well as document their financial history necessary for acquiring loans. The current paper hopes to
Have you ever wondered exactly how major corporations manage their earnings and spendings? Each company needs to be able to keep track of the flow of their money, whether it is coming in or going out. They also need to have it documented and provide it to certain individuals. This report is a summary of their financial performance, comprised of every revenue, expense, asset, liability, and equity that company made over the past year. They provide this report to their shareholders, it is a very important tool of communication between manager and owner, and it is used for tax purposes. In order for corporations to account for their financial transactions, they need to prepare three things; an income statement, a balance sheet, and a statement of cash flows.
This paper relates to finance and accounting. The main objective is to assess and examine financial statement of the chosen company. Amazon Inc. was chosen as the target company. It is a retail giant with more than $350 billion of market capitalisation. The company is headquartered in Seattle, Washington. Its main business sector is internet retail. Since Amazon is the US company and its stocks are listed on Nasdaq, the company has to file regularly reports with the SEC. The reports can be found on the website of the regulator at Error! Hyperlink reference not valid.. One of those reports is covered by this paper. It is an annual report which called the 10-K. It contains financial information and key statements. Therefore, it is possible to derive data for the company’s assets, liabilities, equity and its financial performance.
The role that the Securities Exchange Commission (SEC) plays in financial statements is as one of the primary enforcement bodies. The SEC mandates, for example, that publicly-traded firms must produce financial accounting statements to GAAP standards four times per year, and the SEC has enforcement mechanisms to ensure that these statements accurately reflect the financial condition of the company (SEC.gov, 2007). Within the SEC is another body, the public company accounting oversight board (PCAOB), which is charged with overseeing the activities of the auditors of public company accounting statements. The financial statements that are compiled are presented, along with extensive notes explaining the figures, in the 10-K and 10-Q forms. An annual report is an optional document that a company has no legal obligation to produce, nor is there any guidance for its production. The annual report, however, will almost always be accompanied by the 10-K, which is
Doing so reduces the cost investors receive while collecting company information. Although these disclosure obligations are primarily linked with large publicly traded companies, many smaller companies choose to raise capital by making shares in the company available to investors. (1) These financial statements are also displayed in the form of a business plan. Through the use of income statements and balance sheets corporations are able to successfully record their financial flow. An income statement also known as the statement of revenue and expenses reports a company 's financial performance over a specific accounting period. Corporations use this to provide investors with information about their revenue costs