Basic SEC Info Flashcards
What purpose does Accounting and Auditing Enforcement Releases (AAER) serve?
Report the enforcement actions taken against accountants
Annoucement that provide the SEC’s current position on technical issues.
Staff Accounting Bulletins (SAB)
Issued by the SEC, formal pronouncements that rank the highest in authority for public companies
Financial Reporting Releases (FRR)
What happens when the SEC finds an accounting irregularity
Sends a “Deficiency” letter
Name the 4 divisions of the SEC
- Corporate Finance
- Enforcement
- Trading and Markets
- Investment Management
What does the SEC strive to do?
Ensure that there is adequate information in the public domain before a company issues or trades securities.
What division of the SEC oversees compliance with the securities acts?
Corporate Finance
When does the Enforcement Division of the SEC take action
When there is a violation of the securities law
What SEC regulation governs the form and content of financial statements and FINANCIAL statement disclosures
s-X
What SEC regulation governs the form and content NON -FINANCIAL statement disclosures
s-K
What 3 locations are the SEC’s reporting principles for information found?
- Regulation S-X
- Financial Reporting Releases (FRRs)
- Staff Accounting Bulletins (SAB)
10-K filing deadline for
- Large Accelerated
- Accelerated
- Non-Accelerated
- 60 days
- 75 days
- 90 days
10-Q filing deadline for
- Large Accelerated
- Accelerated
- Non-Accelerated
- 40 days
- 40 days
- 45 days
What is the dollar amount of outstanding voting equity makes an “Accelerated” filer?
$75 mill - $700 mill
What form reports significant events affecting a company regulated by the SEC?
8-K
What section of the 10-K are the Financial statements founds?
Part II section 8
Balance sheets presented in a 10-Q
Quarter and prior Fiscal year-end
Income statements presented in a 10-Q
Quarterly and year-to-date for the this quarter and the same period in the previous year
Statements of Cash Flow presented in the 10-Q
Cumulative year-to-date for the current year and prior fiscal year
5 significant provisions of SOX 2002 related to financial reporting
- Annual audits of financial statement
- Auditors can not provide non audit services
- Audit committees are required, with a finance expert as the chair
- Annual filing must include management’s report on internal controls
- Increased penalties for fraud and white-collar crime
