Components of the Form 10-K That Securities Compliance Professionals Will Help You File
The SEC requires some company insiders, public companies, and brokers to file financial statements and disclosures periodically. Investors and finance professionals will evaluate these SEC filings to decide whether or not to invest in companies. One of the forms a securities compliance expert will help you to file is Form 10-K. This is an annual report that comprehensively analyses a company's financial situation. Though some of the information on Form 10-K overlaps with your annual report, these documents are different. Here are the components of Form 10-K.
Business details
This part of Form 10-K gives readers a complete introduction to your business. Some of the information here includes the risk factors, judicial proceedings, and assets of your company. The section also consists of a health and safety report to identify any imminent dangers that might attract legal actions by regulatory bodies if applicable to your Company.
Financial details
Your securities compliance expert will spend a lot of time on this section because it is the primary determinant of whether or not people invest in your company. The financial details section includes your audited income statement, cash flow statement, and balance sheet. It also details any disagreements or changes with accountants on your financial and accounting disclosure.
Management details
The reputation of your management team will determine if people trust you with their money. The management details section of Form 10-K outlines your board members, compensation paid to your executives, and information on shareholding patterns. The securities compliance board will also consider the reputation of your management team to ensure everybody on it is trustworthy.
At a glance, Form 10-K appears overly complex with its figures and data in the above sections. Nonetheless, these ensure investors have a comprehensive report of your company. Form 10-Q comprises the same information as 10-K but is a truncated version of the latter that is filed quarterly.