Question

P16.3

Quarterly Reports to the SEC The SEC sets forth specific guidelines as to what information must be included on Form 10-Q, the quarterly report to shareholders. P16.3 LO 4 Required Corporations are required by the SEC to file a Form 10-Q. What is Form 10-Q, and how often is it filed with the SEC? 2. 1 Explain why the SEC requires corporations to file Form 10-Q. Discuss the disclosure requirements pertaining to Form 10-Q with specific regard to the following b. Condensed balance sheet. Statement of income and comprehensive income. ments of cash flows. Management's discussion and analysis of the interim period(s). 5. Footnote disclosures. 2 4.

Answer 1

Form 10-q is a quarterly report to be filed by corporations, mandated by the United States federal security and exchange commission.

1. In accordance with section 13 or 15(d) of the Securities Exchange Act of 1934, Form-10q is an SEC filing and is required to be filed quarterly. For large accelerated filers, form-10q must be filed within 40 days after the end of the fiscal quarter. All other registrants are required to file it within 45 days after the end of the fiscal quarter.

2. These reports review and compare the last and current quarters and last year's and current year's quarters, to get an understanding of the company's financial position. The SEC requires this to keep the investors informed, for evaluation and investment purposes.

Disclosure requirements for form 10-q:

1. Condensed balance sheet: A condensed balance sheet provides an overview of a company's financial position of a certain quarter.

2. Statement of income and comprehensive income: is the consolidated income statement that comprises of company's net income and comprehensive income (income which affects the company's balance sheet but is not mentioned in the income statement.).

3. Statement of Cashflows: Financial statements that give the details of cash and cash equivalents entering and leaving in a certain fiscal quarter.

4. Management’s Discussion and Analysis of Interim Period: is a third person narrative from the management's point of view about the financial position of the company, given to investors for their better understanding and to improve the overall disclosure of company's financial statements.

5. Footnote Disclosures: any additional information about the company's methods or policies or use of tools, which have affected the company's financial position significantly is to be disclosed in the footnotes of the financial statements.