Question

L 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. 3 Required Corporations are required by the SEC to file a Form 10-Q 1. What is Form 10-Q, and how often is it filed with the SEC? 2. Explain why the SEC requires corporations to file Form 10-Q b. a. the disclosure requirements pertaining to Form 10-Q with specific regard to the following: Discuss 1. Condensed balance sheet 2. Statement of income and comprehensive income, 3. Statements of cash flows 4. Management's discussion and analysis of the interim period(s). 5. Footnote disclosures.

Answer 1

Answer are as under :

a. 1) What is form 10 - Q and how often is it filed with the SEC.

Form 10 - Q is a quarter review report to filed by publicly trade companies with securities and exchange commission as per the section 13 / 15(d) of SEC Act 1934. It is limited review report which show the less detailed information of companies financial position. It is filed 3 times a year. That is first three quarter of the year from the beginning of the financial year. It is based on unaudited review

a. 2) Explain why the SEC requires corporations to file form 10- Q

SEC requires corporation to file form 10- Q because of the following reasons :

1) It gives an overview of the companies financial position

2 ) With the help of various stake holders and investors can keep track of the money received from them and money collected from bank. Proceed of money and its utilization can be known

3) Stakeholders of financial statement can compare it with pervious quarter, pervious year quarter.

4) Important management decision taken during the year can be known

5) Quarterly profit and loss can be known

b. 1) Disclosure requirement with reference to form 10 Q for Condensed balance sheet

Companies should disclose significant changes in current assets including liquid assets, non current assets, liabilities , working capital. Changes in equity, current and non current liabilities with reference to the pervious quarter. Company will also disclose the basis and necessary assumption considered while preparing condensed balance sheet and its impact on companies growth. d. Interim statements — normal adjustments — Any unaudited interim financial statements furnished should reflect all adjustments that are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. A statement to that effect should be included.

2.) Statement of income and compressive statement

Companies need to prepare statement of income and comprehensive in a single statement or it can be perpared in two statement also. It should clearly show the reveue from operations, operating expenses, taxes paid, net income or loss. If adjustments are of a normal recurring nature, a statement to that effect should be made; otherwise, information should be provided describing in appropriate detail the nature and amount of any adjustments other than normal recurring adjustments entering into the determination of the results shown. Adjsutment of revaluation reserve and employee plan and unplan asset should be specifically disclose