A 10-Q is a quarterly report required by the SEC for publicly traded companies. The 10-Q ordinarily includes financial statements for the quarter, management's discussion of results, and other information, like accounting policies. The 10-Q is not the same as the interim report companies issue to shareholders, although the 10-Q contains much of the same information. Traditionally, companies filed the 10-Q 45 days after quarter's end. In 2002, however, the SEC adopted new rules that gradually accelerated the deadline for most companies to 35 days for quarters beginning after December 15, 2006. Although the 10-Q provides a useful glimpse at company operations, it has significant drawbacks. The financial statements of the 10-Q are unaudited; they are also difficult to prepare, since a company's operations are ongoing and do not fit neatly into the three-month time-spans of the 10-Q. The financial statements of the 10-Q are also based on many assumptions and estimates that may need to be revised in future accounting periods. Finally, note that the 10-Q is only required for the first three quarters of the year. |
