Question

2. What are the advantages and disadvantages for public companies increasing their disclosures of financial forecasts? Where would you find a company's financial forecasts? Have you found any company's disclosure of its financial forecasts that you would like to share with the class? How will the new IFRS proposed changes impact current U.S. company disclosures?

Answer 1

A public company’s disclosure obligations begin with the initial registration statement that it files with the SEC. But the disclosure requirements don’t end there. Public companies must continue to keep their shareholders informed on a regular basis by filing periodic reports and other materials with the SEC. The SEC makes these documents publicly available without charge on its EDGAR website. The filed documents are subject to review by SEC staff for compliance with federal securities laws.

Following are some of the reports that may be filed by U.S.-based public companies. Foreign companies that file reports with the SEC may file different types of reports.

1.Annual Reports on Form 10-K.

2.Quarterly Reports on Form 10-Q

3.Current Reports on Form 8-K

4. Proxy Statements

Advantages of disclosure of financial forecastes.

1.It ultimately raises that easiness of the financial statements

2.Organisation comparisons of different sizes and infrastructure of finance

3.Trend analysis can be done after this to compare one single company over a period of time

4. The numericals can judge the financial position of the company

Dis advantages of financial statement analysis

1.Balance sheet can give mislead traits if done with out taking financial analysis case study assignment help

2.A specific time period basis does not describe the financial results of cash flow

3.Many fraud employees can use this for their self interests