Whether you are thinking of taking your company public and want to get all your ducks in a row or you’re already a newly public company, SEC reporting is an important piece of the puzzle. The US Securities and Exchange Commission (SEC) requires your public company to file quarterly and annual reports on an ongoing basis. In this post, we are going to break down exactly what SEC reporting is and why your public company must do it.
What is SEC Reporting?
Also known as SEC filing, this process involves submitting your company financial statements and other formal documents/reports to the SEC. Some filings are one-off, one-time forms, usually as part of an Initial Public Offering (IPO). But public companies also have many ongoing SEC reporting requirements that they have to meet, including:
Form 10-K
Form 10-K is usually filed 2 to 3 months after the year-end, depending on your company’s public float and whether you are deemed a non-accelerated filer, an accelerated filer, and a large accelerated filer. It covers topics such as:
· Your organizational structure and leadership
· Corporate history
· Executive compensation details
· Information on subsidiaries
· Financial statements
· Key metrics like EPS (earning per share) and other data
Form 10-Q
Where Form 10-K is really in-depth, Form 10-Q is a concise version of the former. It is generally filed 40-45 days after the close of the first 3 quarters of your company’s fiscal year, depending on your public float. For the 4th quarter, the 10-K form usually replaces the 10-Q.
10-Q offers a highly detailed glimpse into your company’s financial performance for the quarter, providing investors with management discussion & analysis (MD&A), unaudited financial statements, and disclosures on internal controls and risk factors regarding material changes.
Form 8-K
Form 8-K is a current report of unscheduled corporate changes or material events at a company that could be of importance to the SEC or the shareholders. These events include:
· Amending company charter or bylaws
· New/departing principal officers or directors
· Changing control of the company
· Changing your certifying accountant
· Material changes to security holders; rights
· Unregistered securities sales
· Completion of disposing/acquiring of assets
Why Timely SEC Reporting Is So Important?
Life is unpredictable, even (or especially) if you are a CFO of a multi-million dollar organization. If for some reason, your company fails to meet an SEC reporting deadline, the results can be unpleasant. Please note that extended deadlines are available and if you meet those, the SEC will still consider your SEC reporting as timely.
If a company fails to file altogether or misses the extended deadline, the SEC may impose fines and other penalties against the directors, officers, or the company itself. Penalty may include revocation of your Exchange Act registrations.
Learn More About SEC Reporting & Disclosure Requirements
The world of SEC filing and disclosure is expansive and there’s a lot more to it than what we have discussed in this post. At Remote Accounting Online, our accounting specialists have extensive knowledge of SEC compliance, allowing us to assist our clients with:
- Accounting and reporting of new and current accounting pronouncements
- Evaluation of key accounting practices and assumptions
- Assistance in technical accounting areas, such as share-based compensation
- Reading and commenting on the company annual and quarterly financial statements before submitting to your external auditors
To know more about how we can help, give us a call at 541-772-5555 or fill out this form.