10 k and 10 q differences the 10 k has been described

Info icon This preview shows pages 7–9. Sign up to view the full content.

View Full Document Right Arrow Icon
10-K and 10-Q Differences The 10-K has been described above and needs to be filed annually (yearly) by companies. It contains a thorough documentation of all information that is needed to understand about a company, financial statements that have been audited, executive rectification, the structure of the organization, and so forth. The 10-Q is filed quarterly (four per year) and is considered less detailed than the 10-K. Filing the 10-Q must be completed within thirty-five days after the quarter end date and the contained financial statements are normally not audited. Not only do these forms assist investors in being successful but also they are among the most common SEC filings. All companies but the smallest ones are mandated to file these forms and they must disclose pertinent information about the corporate structure and the business to be available to the investors. Investors view the SEC filings as being pure and unblemished by brokerage analysis and about the company itself. Everything that is wanted or needs to be known about a company can be found by looking over the quarterly (10-Q) or annual (10-K) reports. Comparing Apco’s 10-K and 10-Q contents, the differences seem to be that on the 10-K has more entailed than the 10-Q, which is due to the fact that the 10-K is an annual report and has the differences noted above (Form 10-K, 2012; Form 10-Q, 2012). Additionally, the 10-K for Apco contains a bit more in Part II and Part III and IV, which are not included on the 10-Q and gives more definition to the report. The reason for the two being different is that the 10-Q provides more timely information, unaudited, and reports that are not as detailed. These are essential for
Image of page 7

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
FINANCIAL REPORTING investors to be able to quickly get the information on companies without having to wait for the 10K to be filed, which is only once a year. Two Disclosures One disclosure on the 10-K form that was chosen to discuss and found interesting was the credit information. This was interesting since it entails that the company needs to state why their credit either increased or decreased in the letter grade ranging from AAA to D. It is a customary practice that companies must devote one to two sentences, if not more, to their current rating and the broader hypothesis of the downgrade on the credit rating. An example of this is the hypothesis that AutoNation (U.S. auto retailer) disclosed that a downgrade by either Moody’s or S&P would have an increase on its basis points of twenty-five in its facility of revolving credit. Furthermore, they state that if share repurchases, add on more credit acquisitions, or new car demands decrease so would their credit rating. For Apco, what would or could affect their credit was mentioned throughout the 10-K form. One notation that was found interesting was that while “public equity markets experienced significant declines” could cause the lack of liquidity of the credit markets globally; in turn would disrupt credit availability. Although it is known that
Image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern