10-K Report

10-K Report Annual Financial Report SEC Filings Financial Statements Public Companies Corporate Disclosures Investor Relations
A comprehensive annual report filed by publicly traded companies to provide a detailed picture of their financial condition.
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10-K Report

Definition

A 10-K Report is a comprehensive annual report filed by publicly traded companies to the Securities and Exchange Commission (SEC). It provides a detailed picture of the company’s financial condition, including audited financial statements and other significant information such as the company’s operations, risk factors, and market conditions. Unlike the more casual annual report sent to shareholders, the 10-K is a rigorous SEC filing that must adhere to specific regulatory requirements.

Examples

  1. Microsoft Corporation: The 10-K Report for Microsoft Corporation includes detailed information about its earnings, revenues, and strategic direction, alongside discussions on risk factors like cybersecurity threats and market competition.

  2. Apple Inc.: Apple’s 10-K Report provides thorough data on its financial performance, including segments like iPhone sales, services, and wearables alongside legal proceedings and executive compensation details.

  3. Tesla, Inc.: Tesla’s 10-K Report covers everything from automotive sales and energy generation/storage revenue to risk factors including regulatory compliance and the availability of lithium-ion battery cells.

Frequently Asked Questions

Q1: What is the difference between a 10-K and a 10-Q?

A1: The 10-K is an annual report that provides a comprehensive overview of the company’s performance, whereas the 10-Q is a quarterly report that includes unaudited financial statements and provides updates on the company’s financial status.

Q2: When is the 10-K report filed?

A2: According to SEC regulations, the 10-K must be filed within 60 days for large accelerated filers, 75 days for accelerated filers, and 90 days for non-accelerated filers after the fiscal year-end.

Q3: Can investors rely solely on the annual report to shareholders instead of the 10-K?

A3: While annual reports to shareholders provide valuable insights, the 10-K is much more detailed and has to adhere to strict regulatory standards, making it a more reliable source for in-depth financial analysis.

Q4: Where can I find a company’s 10-K report?

A4: The 10-K report can be found on the SEC’s EDGAR database as well as the company’s investor relations website.

Q5: What key sections are included in a 10-K report?

A5: The key sections typically include Business Overview, Risk Factors, Selected Financial Data, Management’s Discussion and Analysis (MD&A), Financial Statements and Supplementary Data, and Signatures.

  • Form 10-Q: A quarterly report that provides interim unaudited financial statements and ongoing disclosures about operations.
  • Form 8-K: A report used to notify investors of significant events that may affect the company’s financial status.
  • Annual Report: A yearly publication provided to shareholders detailing the company’s business operations and financial conditions.
  • Prospectus: A formal document required by and filed with the SEC that provides details about an investment offering.

Online Resources

  1. U.S. Securities and Exchange Commission (SEC) - EDGAR Database
  2. Investopedia - 10-K Report
  3. Corporate Finance Institute - 10-K Report

Suggested Books for Further Studies

  1. “Financial Accounting: Tools for Business Decision Making” by Paul D. Kimmel, Jerry J. Weygandt, and Donald E. Kieso
  2. “SEC Reporting Handbook” by Michael Young
  3. “Warren Buffett and the Interpretation of Financial Statements” by Mary Buffett and David Clark

Fundamentals of 10-K Report: Accounting Basics Quiz

### What is the primary purpose of a 10-K report? - [ ] To advertise new company products. - [x] To provide a comprehensive overview of the company’s financial condition. - [ ] To act as a promotional tool for marketing. - [ ] To replace the company's annual report. > **Explanation:** The primary purpose of a 10-K report is to provide a comprehensive overview of the company’s financial condition, including audited financial statements and significant information disclosed according to SEC regulations. ### How often is a 10-K report filed? - [ ] Quarterly - [x] Annually - [ ] Monthly - [ ] Bi-annually > **Explanation:** A 10-K report is filed annually and provides a detailed year-end look at the company's financial performance. ### Which of the following is NOT typically included in the 10-K? - [ ] Business Overview - [ ] Risk Factors - [ ] Financial Statements - [x] Press Releases > **Explanation:** Press releases are not typically included in the 10-K. The required sections include Business Overview, Risk Factors, Financial Statements, and other financial disclosures. ### What regulatory body requires the filing of a 10-K report? - [ ] Federal Reserve - [x] Securities and Exchange Commission (SEC) - [ ] Internal Revenue Service (IRS) - [ ] Federal Trade Commission (FTC) > **Explanation:** The Securities and Exchange Commission (SEC) requires the filing of the 10-K report to ensure that investors have comprehensive and standardized financial information. ### When must large accelerated filers submit their 10-K report? - [ ] 30 days after the fiscal year-end - [ ] 45 days after the fiscal year-end - [x] 60 days after the fiscal year-end - [ ] 90 days after the fiscal year-end > **Explanation:** Large accelerated filers must submit their 10-K report within 60 days after the fiscal year-end, as required by the SEC. ### Which report is more comprehensive: the 10-K or the 10-Q? - [ ] 10-Q - [x] 10-K - [ ] Both are equally comprehensive - [ ] Neither is comprehensive > **Explanation:** The 10-K report is more comprehensive than the 10-Q as it provides an in-depth yearly review of the company’s overall financial condition. ### What type of financial statements are included in a 10-K report? - [x] Audited financial statements - [ ] Unaudited financial statements - [ ] Both audited and unaudited - [ ] No financial statements > **Explanation:** The 10-K report includes audited financial statements which have been examined and verified by independent auditors. ### Where can the latest 10-K reports for a company be typically found? - [ ] In the company's marketing brochures - [ ] In the company's press releases - [x] On the SEC’s EDGAR database and the company’s investor relations website - [ ] Nowhere readily available > **Explanation:** 10-K reports are typically found on the SEC’s EDGAR database and the company’s investor relations website for public accessibility. ### How does a 10-K report compare to an annual report to shareholders in terms of detail? - [x] The 10-K report is more detailed - [ ] The annual report to shareholders is more detailed - [ ] Both are equally detailed - [ ] Neither is detailed > **Explanation:** The 10-K report is more detailed than the annual report to shareholders due to its regulatory requirements to disclose comprehensive financial and risk information. ### What is one reason why a company might highlight risk factors in its 10-K report? - [ ] To market new products - [x] To inform investors about potential issues - [ ] To increase stock prices - [ ] None of the above > **Explanation:** Highlighting risk factors in the 10-K report helps inform investors about potential issues that could affect the company’s financial performance, thereby promoting transparency and informed investment decisions.

Thank you for exploring our comprehensive guide on the 10-K Report and testing your knowledge with our quiz. Continual learning and understanding of financial documents ensure sound investment decisions!

Wednesday, August 7, 2024
12b-1 Fee
'Except For' Opinion
Earnings Report January 1, 1
Form 10-K January 1, 1
Form 10-Q January 1, 1
Form 10-Q January 1, 1
Form 8-K January 1, 1
Investor Relations Department January 1, 1
Report and Accounts January 1, 1

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