Field trip assignment (5 points) to look up Facebook 10-K Go towww.sec.gov, choose âsearch EDGAR for company filingsâ and thensearch by âCompany or Fund Name,â¦..â Use the search by company nameâFacebookâ. Enter âFiling typeâ 10-K, hit the âSearchâ button, andthen choose âdocumentsâ tab under âFormatâ for the filing dated2017-02-03. Click the first â.htmâ file under the âDocumentâ columnto open the 10-k file. Hint: choose Document 1. 1. Before youbegin, read the following summary of the10-k prepared by the SECfor investors: http://www.sec.gov/investor/pubs/reada10k.pdf (openin a new window so you donât get kicked out of MyGateway and if thelink doesnât work, search for âInvestor Bulletin: How to Read a10-Kâ on google and it will come up). No points here, just a greathelp. 2. After you open up the 10-K file, you will see âFORM 10-Kâand âFACEBOOK, INC.â to make sure you are reading the correctdocument. Then scroll down to find the âtable of contentsâ toquickly find the items below. One of the highlighted items in theTable of Contents contains information that has to be prepared inaccordance with GAAP, as opposed to being information required bythe SEC outside of GAAP. Which item? (0.5 point) 3. Click onâFinancial Statements and Supplementary Dataâ to find the âIndex toConsolidated Financial Statementsâ and then choose âNotes to theConsolidated Financial Statementsâ. What does the termâconsolidatedâ mean â based on your reading of Note 1 (in yourwords, no textbook or Wikipedia definitions)? (0.5 point) 4.Continue with the âSummary of Significant Accounting Policiesâ noteâ Note 1. a. Find the discussion of the Use of Estimates. Name 2places in the financial statements where estimates are relied upon.(0.5 points) b. Find the discussion of Revenue. What are the namedsources of revenue? (0.5 point) c. Find the discussion of Propertyand Equipment. What depreciation method is used for assets? (0.5point) 5. Scroll up to the page before Consolidated Balance Sheets.This is the Report of the Independent Auditors. Read the auditopinion. What responsibility do the auditors take regarding thefinancial statements? (0.5 point) 6. Is the Facebook audit opinionâunqualifiedâ (use your book for help if you donât remember fromyour reading âchapter 3)? (1 point) 7. What opinion the auditorsgave to Facebookâs internal controls? (0.5 point) 8. (0.5 point) Atbeginning of the Management Discussion and Analysis section â Whatinformation are highlighted as non-GAAP? 9. In the âFinancialresults:â section, does revenue on non-GAAP basis show a higheryear-to-year growth? 10. Is MD&A neutral and prepared inaccording to GAAP?
Field trip assignment (5 points) to look up Facebook 10-K Go towww.sec.gov, choose âsearch EDGAR for company filingsâ and thensearch by âCompany or Fund Name,â¦..â Use the search by company nameâFacebookâ. Enter âFiling typeâ 10-K, hit the âSearchâ button, andthen choose âdocumentsâ tab under âFormatâ for the filing dated2017-02-03. Click the first â.htmâ file under the âDocumentâ columnto open the 10-k file. Hint: choose Document 1. 1. Before youbegin, read the following summary of the10-k prepared by the SECfor investors: http://www.sec.gov/investor/pubs/reada10k.pdf (openin a new window so you donât get kicked out of MyGateway and if thelink doesnât work, search for âInvestor Bulletin: How to Read a10-Kâ on google and it will come up). No points here, just a greathelp. 2. After you open up the 10-K file, you will see âFORM 10-Kâand âFACEBOOK, INC.â to make sure you are reading the correctdocument. Then scroll down to find the âtable of contentsâ toquickly find the items below. One of the highlighted items in theTable of Contents contains information that has to be prepared inaccordance with GAAP, as opposed to being information required bythe SEC outside of GAAP. Which item? (0.5 point) 3. Click onâFinancial Statements and Supplementary Dataâ to find the âIndex toConsolidated Financial Statementsâ and then choose âNotes to theConsolidated Financial Statementsâ. What does the termâconsolidatedâ mean â based on your reading of Note 1 (in yourwords, no textbook or Wikipedia definitions)? (0.5 point) 4.Continue with the âSummary of Significant Accounting Policiesâ noteâ Note 1. a. Find the discussion of the Use of Estimates. Name 2places in the financial statements where estimates are relied upon.(0.5 points) b. Find the discussion of Revenue. What are the namedsources of revenue? (0.5 point) c. Find the discussion of Propertyand Equipment. What depreciation method is used for assets? (0.5point) 5. Scroll up to the page before Consolidated Balance Sheets.This is the Report of the Independent Auditors. Read the auditopinion. What responsibility do the auditors take regarding thefinancial statements? (0.5 point) 6. Is the Facebook audit opinionâunqualifiedâ (use your book for help if you donât remember fromyour reading âchapter 3)? (1 point) 7. What opinion the auditorsgave to Facebookâs internal controls? (0.5 point) 8. (0.5 point) Atbeginning of the Management Discussion and Analysis section â Whatinformation are highlighted as non-GAAP? 9. In the âFinancialresults:â section, does revenue on non-GAAP basis show a higheryear-to-year growth? 10. Is MD&A neutral and prepared inaccording to GAAP?
