Annual and Quarterly ReportsSEC rules require your company to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the SEC on an ongoing basis. These reports require much of the same information about the company as is required in a registration statement for a public offering. Your company’s CEO and CFO must certify the financial and certain other information contained in annual reports on Form 10-K and quarterly reports on Form 10-Q. If your company qualifies as a “smaller reporting company” or an “emerging growth company,” it will be eligible to rely on scaled disclosure requirements for these reports. Show
Current ReportsYour company must also file current reports on Form 8-K to report certain specified events, often within four business days after occurrence of the event. Examples of the events that trigger the filing of a current report are:
The company also will have to comply with certain rules whenever its management submits proposals to shareholders that will be subject to a shareholder vote, usually at a shareholders’ meeting, and certain of its shareholders and management become subject to other requirements. All of this information must be filed electronically with the SEC through its EDGAR system, and will immediately become publicly available upon filing. Exchange Act RegistrationEven if your company does not have an effective registration statement for a public offering, it could still be required to file a registration statement and become a reporting company under Section 12 of the Exchange Act if:
For banks, bank holding companies and savings and loan holding companies, the threshold is 2,000 or more holders of record; the separate registration trigger for 500 or more non-accredited holders of record does not apply. The information about the company required in an Exchange Act registration statement is similar to what is required in a registration statement for a public offering. Exceptions to Exchange Act RegistrationIn calculating the number of holders of record for purposes of determining whether Exchange Act registration is required, your company may exclude persons who acquired their securities in an exempt offering:
Public float is calculated by multiplying the number of the company’s common shares held by non-affiliates by the market price and, in the case of an IPO, adding to that number the product obtained by multiplying the common shares covered by the registration statement by their estimated public offering price. Financial Statement Analysis: Introduction – Question Bank www.ift.world Copyright © IFT. All rights reserved. Page 1 LO.a: Describe the roles of financial reporting and financial statement analysis. 1.Providing information about the performance of a company, its financial position, and changes in financial position are best described as a role of: A.auditor’s report. B. financial reporting. C. financial statement analysis. 2.Which of the following is most likely to be the role of financial reporting? A. Provide information about a company’s performance, financial position, and changes in financial position that is useful to a wide range of users. B. Use financial statements to evaluate the past, present, and future performance of the company for the purpose of making investment decisions. C. Obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement. LO.b: Describe the roles of the key financial statements (statement of financial position, statement of comprehensive income, statement of changes in equity, and statement of cash flows) in evaluating a company’s performance and financial position. 3.An analyst wants to study the changes that have occurred in a company’s retained earnings over the year. The financial statement that would be helpful in this situation is the statement of: A. changes in equity. B. comprehensive income. C. financial position. 4.A financial analyst wishes to evaluate a company’s current financial position. Which of the following financial statements is he most likely to use? A. Balance sheet. B. Income statement. C. Statement of cash flows. 5.James Calloway, an equity analyst, wants to find out the basic and diluted earnings per share of a company. In which of the following financial statements is he mostlikely to find this information? A. Income statement. B. Statement of cash flows. C. Statement of changes in equity. 6.Amber Reza is concerned about whether her business is generating enough cash. She has to pay off short term debts, utility bills, and other miscellaneous expenses. The ability of her firm to meet short term obligations is known as: A. liquidity. B.profitability. C. solvency. Which of the following reports is most likely to be filed with the SEC?Among the most common SEC filings are: Form 10-K, Form 10-Q, Form 8-K, the proxy statement, Forms 3,4, and 5, Schedule 13, Form 114, and Foreign Investment Disclosures.
Which of the following is least likely to be part of an annual report?Answer and Explanation: The ratio analysis of other firms is not part of the annual reports.
Which of the following is least likely to be considered a role of financial statement analysis?Answer and Explanation: The correct answer is B) Assessing the management skill of the company's executives. The financial statements of a company are analyzed in order to make decisions such as whether to invest in a company or not.
What are the financial reporting requirements of the SEC?SEC rules require your company to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the SEC on an ongoing basis. These reports require much of the same information about the company as is required in a registration statement for a public offering.
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