10-K and 10-Q Filings

Presentation: 10-K and 10-Q Filings
When it comes to public disclosure, mind your Ks and Qs.

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Did you know ?
Did you know ?
2

In 2012, the longest 10-K filing was 359 pages,
while the shortest was 1 page.
359 pages 1 page
3

The average number of pages in a
10-K filing was 43.17 pages.
43.17 pages
4

Did you also know...
5

Regardless of length, 10-K filings and 10-Q filings are two
of the richest sources of intelligence for investors,
stakeholders, competitors and analysts.
6

Why
7

These filings contain a wealth of information.
Auditor
information
Foreign
operations
Products
Plant
and
property
Directors
and
officers
Current
financials
Company
summary
10-K filings
8

Financial
statements
Use of
proceeds
Exhibits
Legal
proceedings
Control
procedures
Risk
factors
Market
risk
MD&As
10-Q filings
?
?
9

When is information released
10

10-K filings:
60
days after
year-end
Filing due
Large accelerated filers:
75
days after
year-end
Accelerated filers:
90
days after
year-end
Non-accelerated filers:
Filing due Filing due
11

10-Q filings:
40
days after
quarter-end
Filing due
Large accelerated &
accelerated filers:
45
Non-accelerated filers:
days after
quarter-end
Filing due
12

In 2012, there were:
8,235
10-K filings*
23,863
10-Q filings*
13
*Not including amended filings.

Of these,
of 10-K filings
were filed late
19%
of 10-Q filings
were filed late
13%
14

That’s a lot of late filings.
15

Why so many
16

Common reason for filing late: #1
17

Outsourcing XBRL tagging
Pencils down time
=
18

The longer the pencils down time, the higher the risk.
19

With a pencils down time, there
is a higher risk of bottlenecks.
With more bottlenecks, there are
more obstacles to achieve timely filing.
20

Common reason for filing late: #2
21

Errors in financial statements.
22

These are caused by weak internal controls
or inefficient reporting practices.
23

44% of narratives within NT 10-K filings
and 57% of narratives within NT 10-Q
filings contained issues related to
financial statements.
24

What happens when filings are late
25

Shareholders lose confidence!
26

Late filings cause stock to drop an average of 2.44%:
1.96% decrease in stock
value for late 10-Ks
value for late 10-Qs
Source: “Filing Late? Make It a 10-K, Not Your 10-Q.” CFOworld. CFOWorld, 2 May 2013. Web. 04 Apr. 2013.
<http://www.cfoworld.com/compliance/8632/filing-late-make-it-10-k-not-your-10-q>.
27

The reason for filing
late also impacts the
decrease in
stock value.
28

Filing late due to accounting reasons:
value for late 10-Qs
value for late 10-Ks
29

When companies cited multiple reasons for filing late,
the impact on stock value was even more significant.
30

Filing late due to multiple reasons:
5.48% decrease in
stock value for 10-Qs
4.73% decrease in
stock value for 10-Ks
31

The best ways to prevent late and
noncompliant 10-K and 10-Q filings
32

33
Print this:
Use a SEC filings Calendar to keep on top of deadlines
Read this:
Understand the truths about XBRL tagging
Know this:
A Guide to Common Filing Errors and How to Avoid Them
33
Resources

34
Would you like to learn more about how to pull intelligence
from 10-K and 10-Q filings?
Contact us.
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