Form 10-K is a comprehensive financial performance report filed annually by publicly traded companies and is required by the United States Securities and Exchange Commission (SEC).. This report contains much more detail than the report that companies send to their shareholders before the annual meeting to elect their directors.
Some of the information a company must document on Form 10-K includes its history, organizational structure, financial statements, earnings per share, subsidiaries, executive compensation, and any other relevant information.
The SEQ, requires this report to keep investors abreast of the company’s financial condition and so that they can have sufficient information before buying or selling shares or before investing in the company’s corporate bonds.
Understanding Form 10-k
Due to the depth and nature of the information they contain, 10-K forms they are quite long and tend to be complicated. But investors need to understand that this it is one of the most comprehensive and important documents that a company can publish annually. The more information they can get from the 10-Kthe more they will know about the company.
The government requires companies to publish 10-K forms so that investors have fundamental information about the companies and thus can make investment decisions based on the information. This form gives a clearer picture of everything a company does and what kind of risks it faces.
The form 10-K includes five distinct sections:
- Business. This provides an overview of the company’s main operations, including its products and services (ie, how it makes money).
- Risk factor’s. These describe any and all risks that the company faces or may face in the future. Risks are usually listed in order of importance.
- Selected financial data. This section details specific financial information about the company for the past five years. This section presents a closer look at the company’s recent performance.
- Discussion and analysis of the financial situation and the results of operations by management. Also known as MD&A, this gives the company an opportunity to explain its business results from the previous fiscal year. In this section the company can tell its story in its own words.
- Financial statements and supplementary data. This includes the company’s audited financial statements, income statement, balance sheets, and statement of cash flows. Also included in this section is a letter from the company’s independent auditor certifying the scope of their review.
With the form 10-K Signed letters from the CEO and CFO of the company are also presented. In them, the executives swear that the exposed information is real. These letters became a requirement after several cases involving accounting fraud following the dotcom bust.
Where to find a 10-K form
10-K forms are public information and can be easily obtained through various sources. In fact, the vast majority of companies include them on their website. Information included in a form 10-K It can be difficult to analyze, but the more familiar investors are with the document and the type of information that is included, the easier it will be to identify important details.
- The form 10-K is an exhaustive report presented annually by public companies on their financial results.
- The form 10-K it is required by the United States Securities and Exchange Commission (SEC) and is much more detailed than the annual report.
- The information of the 10-K includes company history, financial statements, earnings per share, and any other relevant data.
- The form 10-K it is a useful tool for investors to make important decisions about their investments.
Filing Deadlines for Forms 10-K
Form 10-K filing deadlines vary by business size. According to the SEQcompanies with publicly traded shares that are available for trading of $700 million or more, must file their 10-K within 60 days after the end of your fiscal year. Companies with working capital between $75 million and $700 million have 75 days, while companies with less than $75 million in working capital have 90 days.
Forms 10-Q and 8-K
With him form 10-Kthe SEQ requires public companies to regularly file 10-Q forms Y 8-K.
Form 10-Q must be filed with the SEC on a quarterly basis. This form is a comprehensive report of the company’s performance and includes relevant information about its financial position. Unlike 10-Kthe information of the 10-Q It is not usually audited. The company is only obliged to present it three times a year, since the 10-K occurs in the fourth trimester.
Form 8-K, however, is required by the SEC when companies announce important events of which shareholders must be informed.. These events may include (but are not limited to) sales, acquisitions, exits, exits and elections of executives, as well as changes in the status or control of a company, bankruptcies, information on operations, assets and any other relevant news.