Public Co. Reporting Flashcards
What are the 4 SEC report types?
S-1 : Shares on national exchange
10-K : Annual audited financials
10-Q : Quarterly financials filed 1st three quarters -unaudited
8-K : Major business events
Where must the EPS be reported?
Income from continuing operations, income from discontined operations, and Net Income
What does it mean if something is antidilutive?
EPS exercise price is greater than market price… it is left alone in EPS calculation
What does it mean to have something that dilutes EPS
it decreaes EPS because # of shares increases…. it is added in EPS calculation
What is the “if - converted” method?
Assumes any convertible security that could conert to common stock will convert.
When is the conversion of a security considered to have occurred in a reporting period?
If convertible securities are issued during the year use the date of issuance. If not issued during the year utilize the earliest period reported (Jan)
What are required disclosure in the 10-K filing?
Description of business, market price of common stock, executive compensation
What is an example of a midyear event that must be treated as ocurring at the beginning of the year when calculating weighted-average number of shares outstanding?
A declaration and payment of stock dividend.
BECAUSE
A stock dividend is considered to have ocurred on the first day of the year when computing weighted-average number of shares outstanding.
In addition to the most recent quarter-end, which of the following periods is the company required to present balance sheets on form 10-Q
SEC requires that 0-Q contain an interim balance sheet as of the end of the most recent fiscal quarter AND a balance sheet as of the end of the preceding fiscal year….
When does an interim balance sheet NOT need to be provided on form 10-Q?
Does not need to be provided unless it is necassary for understanding the impact of seasonal fluctuations.
What is an example of an antidilutive security?
Incentive stock options: when the the exercise price is greater than the market price.
Preferred stock that is not convertible to common stock
What is the treasury stock method?
- If converted take the # of incentive options X the exercise price.
- Take the dollar value above and divide it by the current market price to get # of shares repurchased
- Take the Number of shares repurchased - # of incentive options.
If number is positive we have an increase in EPS antidilutive
If number is negative we have a decrease in EPS dilutive
