Question

There are many components of a 10K filing. Pick three components that you find are the most important and explain why? Can you find them in the annual report as well? If not, why? Take a look at your fellow students responses and provide feedback to others.

Answer 1

Defination of Form 10k:

It is an annual report of a company required by the SEC that gives the clear view of company's financial performance.

As per as I am concerned below mentioned components are important and reason below:

1. Risk factors: this is a most significant factor that make investing in the securities of the company risky or speculative. Filing 10k form discloses of risks the company faces.

2. Financial Statements and Supplementary Data: Financial statements are the most important part of the form 10-k filing because it allows the clear picture of finances and what is happening with company's finances. It includes, income statement and balance sheet that shows how much money company has made and debt level.

3. Another component is If the issuing entity does not have any executive officers or directors, Directors and Executive Officers of the Registrant. It includes the signed letters from the CEO and CFO swearing under oath that the books are accurate to their knowledge.

Yes, these items can be found in annual report as well.