ACCT20100 Chapter Notes - Chapter 5.2: Early Access, Financial Statement, Form 10-Q
Document Summary
Sec regulation for fair disclosure (cid:862)fd(cid:863) requires that companies provide all investors equal access to all important company news. Managers and other i(cid:374)side(cid:396)s a(cid:396)e also p(cid:396)ohi(cid:271)ited f(cid:396)o(cid:373) t(cid:396)adi(cid:374)g thei(cid:396) (cid:272)o(cid:373)pa(cid:374)y"s sha(cid:396)es (cid:271)ased o(cid:374) (cid:374)o(cid:374)pu(cid:271)li(cid:272) (insider) information so that no party benefits from early access. Many companies, including apple, follow these press releases with a conference call during which senior managers answer a(cid:374)alysts" (cid:395)uestio(cid:374)s a(cid:271)out (cid:395)ua(cid:396)te(cid:396)ly (cid:396)esults. The market reacts not to the amount of earnings, but to the difference between expected earnings and actual earnings unexpected earnings. For privately held companies, annual reports are relatively simple documents photocopied on white bond paper normally include: four basic financial statements, related notes (footnotes, report of i(cid:374)depe(cid:374)de(cid:374)t accou(cid:374)ta(cid:374)ts (cid:894)auditor"s opi(cid:374)io(cid:374)(cid:895) if the statements are audited. Often includes vivid images and beautiful pictures of the company. Also includes ma(cid:374)age(cid:373)e(cid:374)t"s discussio(cid:374) a(cid:374)d a(cid:374)alysis of fi(cid:374)a(cid:374)cial co(cid:374)ditio(cid:374) a(cid:374)d results of operations: Includes selected financial data summarized financial data for a 5 year period.
