3. Annual Report & More
Public Traded Companies:
Annual Report
www.prars.com
Investor Relations
10K Report to the SEC (p. 104)
Annual report without PR piece
Media Publications
Wall Street Journal
Economist
Forbes, etc.
4. Annual Report
Three Key Elements:
1. Regulatory Requirements
Letter to the shareholders signed by CEO/CFO
2. Public Relations
Good and the bad
Direction going – rectify problems
3. Management Discussion & Analysis
Segment reporting
Divisions or line of business
Safe Harbor Provision pg. 92
Company does not provide guidance
Only providing an future assessment
5. Independent Accounts
Proxy Statement
Audit Process
Accounting procedures followed
Role of the CPA firm – Auditor
Opinion Letter
Unqualified Opinion
Qualified Opinion
No Opinion – Adverse Opinion
Footnotes
7. Questions
How many years of financial or statistically information is
typically presented?
What is the role of the CPA firm?
How does a 10K vary from the Annual Report?
What key components should the annual report contain?
Why should we care about shareholder advocates?
What is insider trading?
8. Due Diligence Project
1. Annual Report
Download the company you are tracking annual report
This is going to provide you with 2/3rds of the information you will be
needed
2. Multiple Perspectives & Opinions
Research and find three resources
Company Press Releases
Analyst Research
Google web search
Editor's Notes
Prars.com is public registry– they now sell other services
These elements will always be found in the annual report.
Opinion Letter – audit performed on a test basis
Unqualified Opinion – company has done an excellent job – no issues
Qualified Opinion – all is well except for ONE item – typically relates to GAAP and one single item
No Opinion – auditors cannot confirm numbers
5 to 10 years
Independent control
No PR
Regulatory Requirements
Letter to the shareholders signed by CEO/CFO
Public Relations
Good and the bad
Direction going – rectify problems
Management Discussion & Analysis
Segment reporting
Divisions or line of business
