OMM 622 Week 1 Assignment 1.docx

This part of the annual report usually conveys only

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as the Form 10-K. This part of the annual report usually conveys only the good news” (p. 23). So, again, it has become clear that the purpose of an annual report is to catch the shareholders attention. Once interest is established, the form 10-K follows to more accurately report financial results by mentioning debt, unfavorable exchanges, and other miscellaneous expenses from different sectors within the company. The 360-degree look provided by the form 10-K allows shareholders to properly review past mistakes and invest in or avoid future business operations that deal with potential profits and loss. Lastly, the third part of the form 10-K includes information about company directors and executives. Furthermore, one can also expect to discover things such as employee and equity compensation plans. While part one and two is distributed evenly among four items, companies like Ford use five items to introduce and explain top-level personnel and the money involved with properly compensating them for their duties. There are two items within this section (Certain Relationships and Related Transactions, and Director Independence & Principal Accountant Fees and Services) that appear in a form 10-K but are left out of an annual report due to brevity. To reiterate, this does not diminish the purpose of an annual report, but it does emphasize the necessity and importance of the form 10-K. This section (present but minimized in an annual report) provides shareholders with a closer look at the individuals behind big decision making in a company. Immediately following part three on the form 10-K is part four and other required reporting forms like form 10-Q and form 8-K which includes (but is not limited to) copies of a company’s material contracts and any major events. While these listings were made a
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5 FORD requirement by the SEC, they are not considered to be an essential piece in the financial reporting process. In summary, just as the military has a requirement regarding the transmission of line numbers one through five (at a minimum) in all MEDAVAC requests to ensure the aircraft and/or vehicle is en route, the form 10-K reveals to shareholders a wealth of information; However, upon review, one will realize that only parts one through three provide shareholders with the fundamental financial facts that they need to make sound business decisions. In expressing the
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  • Spring '14
  • Ford Motor Company, U.S. Securities and Exchange Commission

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