Crash Course in Accounting and Financial Statement Analysis, Second Edition

Form 10-Q (Quarterly Filing)

At the end of each quarter of their fiscal year, U.S. publicly traded companies also file a report with the SEC that includes financial statements and nonfinancial data.

Forms 10-Q are due 35 days after the close of a company’s fiscal year.

Form 10-K versus Form 10-Q: What’s the Difference? Form 10-Q financial reports are filed at the end of every quarter (for the first three quarters of a fiscal year); 10-K, at the end of each fiscal year. While 10-Ks and 10-Qs include financial statements, important footnotes, and management commentary on the state of the business, 10-Ks are generally more detailed filings than 10-Qs and contain valuable financial, company-specific, and industry information. Details regarding stock options, detailed debt schedules, and detailed financial footnotes should all be reviewed carefully. Forms 10-K (or annual reports) include extensive management commentary on the state of the business (management discussion and analysis, MD&A) and possibly include forward guidance. Form 10-K reports are reviewed by an independent auditor (a third party), while 10-Q filings are unaudited. This is important because an auditing firm may sometimes highlight certain financial information and valuation methodologies it believes do not conform to U.S. Generally Accepted Accounting Principles (GAAP).