Premium Essay

Why Public Companies Need to Follow Gaap

In: Business and Management

Submitted By mikki
Words 415
Pages 2
Explain why public companies need to follow GAAP when they prepare their financial statements.
Companies need to follow GAAP so that financial statements are standardized, making it possible for shareholders to compare companies to one another. It also helps keep the information easier to understand, more accurate, and promotes transparency.
Explain why financial statements of public companies need to be audited before they are shared with the public.
Audits ensure that the numbers are not being manipulated to make a company appear more financially healthy than it really is. Shareholders have only the financial reports to go by, so an audit protects the shareholder by verifying reported data.

Explain how auditors conduct the audit and how they communicate their findings.
Generally, a report from an auditor will have three sections. The first section tells the duties of the directors and auditors. The second is the coverage of the audit, and verifies that GAAP were utilized. The last section gives the opinion of the auditor (Auditors).

What is the information that is included in package 10K?
The SEC requires companies to provide a yearly financial report that gives a complete overview of the company’s financial state. The report must be filed within 90 days of the end of the company’s fiscal year. It includes statements on equity, assets, liability, income, and cash flow generated throughout the fiscal year. It also contains information on executive compensation and the company’s organizational structure (10K).

Explain what is included in 10Q reports and why they are needed.
10Q forms are quarterly reports that have to be filed by publicly traded companies and some private companies. The reports contain information on the company’s equity. Companies only file three 10Q reports a year because the fourth quarter is reported in the annual report (10K)…...

Similar Documents

Premium Essay

The Public Needs to Know

...The Public Needs to Know-Revised Version Susan Poston Professor Nancy Christine Foreman ENG 115-English Composition November 25, 2012 The current status of school meals is that they are full of fat and do not contain enough nutritious value, so in order to preserve the health and well being of the children in our society, there needs to be changes in the school breakfast and lunch programs. The first section of the paper will discuss the economic issues. The middle portions will examine the needs of the population being served along with the process that is involved in implementing the program. The final part will elaborate on the benefits of the program. A major economic issue that the people of society face today is the rising rate of unemployment. The rising rate of unemployment has caused society into a time filled with burden. The burden occurs when the unemployed families have to figure out how to feed their children. This burden has caused a rise in the number of children participating in the breakfast and lunch program. The increase in participation has gone up by about 84 % for free and reduced lunches alone. The participation is also rising because it is cheaper for a family to feed their child at school than it is to send their lunch (School Nutrition Association, 2008). The rising rate of participation shows that families are in dire need of assistance. The families are turning to the schools for assistance to ensure that......

Words: 1642 - Pages: 7

Premium Essay

The Public Needs Know

...The Public Needs to Know William J. Pruitte ENG 115 Professor Laura Weber 5/17/2013 Introduction The Public Needs to Know Life is the possible price a cancer patient may pay while a new cancer drugs are being produced. Why do cancer drugs cost so much for the patients that need the drug to cure or prolong their life? We have all this technology, but why does all the Corporations that handle the product have to put a high price on what saves a life? Who has the last word on if the drug meets the standard to cure the cancer and why does it take so long to find out if it works or not? “A number of innovative cancer treatments have recently entered clinical practice. Some treatments cost as much as $100,000 per year but it has become apparent that many of these expensive new drugs offer uncertain benefits. Some drugs add only a few weeks of survival at a cost of tens of thousands of dollars. If the cost of cancer care continues to rise, the oncologists are likely to be pressured by payers to consider the economic factor. The high impact of cancer care continues to rise and so does the price tag on many of the agents that have become available during the past few years. Because of the tremendous difference in treatment cost, it is crucial to consider the actual benefits associated with treatments that are more expensive.” (Nelson, 2008) Developing new drugs for treating cancer is a...

Words: 1241 - Pages: 5

Free Essay

The Public Needs to Know

...------------------------------------------------- the public needs to know Kimberly A. Waters May 22, 2013 ENG115- ENGLISH COMPOSITION Professor Tammy Finch May 22, 2013 ENG115- ENGLISH COMPOSITION Professor Tammy Finch What is cancer? Cancer is basically the roof that houses many diseases. It is a general name for all the different types of diseases that fall under the category of the true definition of cancer. Cancer: a malignant tumor of potentially unlimited growth that expands locally by invasion and systemically by metastasis or an abnormal bodily state marked by such tumors. Statistically, half of all male population and one third of women will develop cancer in their lifetime. New drugs for Cancer are being researched and tested constantly. There are thousands of new drugs being developed to treat and cure the disease known as cancer that affects so many of us daily. Not only for those who have Cancer but for the loved ones around them as well. The support for research is crucial. Many have realized that research is vital for the discovery of new treatments and the benefits for the different ranges of cancer. As stated in Project Management for Healthcare by David Shirley, Rogaine started out in the lab as a possible medication for the heart. After research it turned out to be better for hair loss and to this day is known for its benefits and results in hair growth. Most of the human race relies on prescription medications to cure ailments and according to......

Words: 1262 - Pages: 6

Premium Essay

The Public Needs to Know

...The Public Needs to Know Brittany Griffin Strayer University ENG 115 November 11, 2013 Professor Ogden The Public Needs to Know There is a range of 600,000 to 2.5 million people whom are homeless within the United States (FAS.org 2009). The streets that we drive on many of our fellow American consider those streets home. The economic issues, special needs and the process of trying to help our fellow citizen feed themselves is difficult due to the issue we face to help feed and shelter these individuals new drug for cancer patients make it difficult to undertake such a venture, thus eroding the benefits reaped from such a program Here in our community we face issue like poverty, homelessness, unemployment and most of all, our children being left behind. With the lack of jobs we see more and more poverty in our local community. The unemployment rate has manage to stay at a level rate however for our local area 11% is pretty high. We’ve been stagnant at this rate for the past five years. People are losing their homes and having to let their children go with others while they seek shelter for themselves. While low income housing is available you don’t qualify unless you have some type of income. Our kids are left behind at school and pushed aside due to the teacher lack of caring. Our children are either obese or underweight. Poor dieting and poor supervision is putting our kid’s future at risk. This must stop as of yesterday. It’s clear our community is in dire...

Words: 811 - Pages: 4

Premium Essay

When Companies Satisfy Public Needs

... When company satisfy public needs The marketing system of all companies all over the world has been accused of adding to several “evils” in all societies at large, unlike other business functions like accounting or finance, people in marketing interact directly with the public even studies show that marketer and salesperson rank poorly in ratings of the most trusted professions.  Critics have charged that the marketing system urges too much in material possessions. People are judged by what they own rather than who they are, phrases such as “greed is good”, “shop till you drop” seemed to characterize this time and this world where the false wants and the excessive materialism dominate. The critics do not view this interest in material things as a natural state of mind but rather as a matter of false wants created by marketing. Businesses hire advertisement’s means to stimulate people’s desires for goods, without forgetting the role of advertisement which uses the mass media to create materialistic models of a good life. People work harder to earn the necessary to make money with them, their purchases increase the output of the multinational or even the national industry, and industry in turn uses the advertisement to stimulate more desire for the industrial output. So when businesses will conversely react and try to establish and improve social goods?   Corporate social responsibility has been defined broadly as involving a firm taking “actions that appear to further......

Words: 684 - Pages: 3

Premium Essay

Public Needs to Know

...The Public Needs to Know By: Drea Johnson ENG115 February 24, 2013 The homeless population in America, as well as the metro Atlanta region is not what it used to be 20 years ago. The Giving to Live organization is working hard and often to see that the rate continues to decrease as well as offer up as much help as they can to take care of those who are still in need. The Giving to Live organization feeds about 50,000 homeless people per year. 40%-60% of those homeless people are employed but cannot afford meals. This organization not only provides food assistance to the homeless but also to others with varying circumstances on a daily basis. This is not an easy task. Several steps and precautions go into making sure this happens. Sometimes, circumstances that are beyond man's control causes changes to take place without notice and some may suffer still. But Giving to Live works diligently with many community workers and volunteers to see that meals are prepared and food is available for homeless families/children, low-income families with children, the elderly, transitional facilities, and orphanages. The number one benefit of Giving to Live is to decrease the number of hungry people in city of Atlanta and in the southern region of America. This factor, though not the only one, is what keeps our director, Ms. Miriam Wilson and her team working around the clock to take care of so many. As a member of this organization, I have been doing some research on......

Words: 1320 - Pages: 6

Free Essay

Why Do Companies Go Public Listing?

...Introduction Generally, a private company is a company owned by a small number of company members and they will not offers their securities to the public. On the other hand, a public company is a company which owned by at least seven members and they offers their securities to the general public. However, 'Listing' is a process that a private company converting into a public company which the shares can be traded on stock exchange (Bursa Malaysia). Once the private company transformed successfully, the company is no longer owned by the individual and entrepreneurs but a group of shareholders (Asia Pacific Stock Exchange, 2012). Normally, company whose plans for listing or further growth will use an initial public offering (IPO) as a method to generate capital needed for expand. IPO is the first sale of stock to the public by a company. (CNBC, 2012) On the others sides, private company whose plan to go listing is for several purposes or benefits. For instance, the public company able to raise their capital by using IPO, simultaneously, a success IPO is an accelerator towards your company expansion. According to Bursa Malaysia listing statistics, in year 2012, there are 14 company whose listing in Main Market and 3 company in ACE Market. Recently, Tune Ins Holdings Bhd (Tune Ins), which is set to bet listed on the Main Market of Bursa Malaysia in February, 2013. (thestar, 2013) Tune Ins has publicize its IPO of 37.59 million shares to the public. On June 2, 2011, Groupon ......

Words: 2348 - Pages: 10

Premium Essay

The Public Needs to Know

... The Public Needs to Know 1 The Public Needs to know ( About Free Clinics) Christy Phillips Strayer University English 115 ALENE Morrison 04/28/2014 The Public Needs to Know 2 The people in Douglasville, Georgia need to know that the health care of the community is crucial. It is because of the price of the insurance today too many people go without medical care that they need. If Douglasville, Georgia had a free clinic more people could get the health care of that they need. There are more people dieing everyday because they cannot afford to get the medical care they need. That is why now more than ever the community needs to open a free clinic here in Douglasville, Georgia for the low income families and the uninsured. The public needs to know why a free clinic would be beneficial to Douglasville, Georgia. To begin with the state of Georgia population is 9,687,953 and of that 132,493 live in Douglas county (US Census Bureau,2010). According to ( healthyfuturega.org) nearly 2 million people in Georgia are uninsured that is among the highest in the nation. There is a total of 44,131 uninsured in Douglas and Carroll County it is the third highest in the state of Georgia. The presence of free primary care clinic reduces hospital costs associated with non-urgent ED use and inpatient care (Journal of Health & Human Services Administration. Mar2012, Vol. 34 Issue 4, p456-470. 15p). That is why someone needs to find a way to help the......

Words: 1328 - Pages: 6

Free Essay

What Needs to Be Done – the Follow Through Plan

...What Needs to be Done – The Follow Through Plan Momentum is a beautiful force, especially if moving in the desired direction. However, economic momentum can be lost quickly if the inertia that mobilized it dissipates with waning enthusiasm. This article is about the continuation of what needs to be done to maintain positive economic inertia and provide a kinetic boost that will charge the US economy successfully into the foreseeable future. Although time is of the essence in any equation dealing with momentum, some of the “Follow Through Plan’s” planks discussed below have greater priority versus the remaining. But let us not pretend that if some of the plan is sacrificed due to the “feel good” inspirations fostered by the beginnings of proactive economic stimulus, it will not be sustainable if the core retains the properties of risk-tails that can demolish the forward curve permanently … and swiftly. Black Swan events, or those considered to be Gaussian anomalies or 9th degree standard deviation eclipses do not, and have not, occurred at the interval statistical quants have modeled. In fact the anomaly is to believe that Black Swan events are anything but a force of nature and occur about as common, as frequent and as necessary as the changing of the seasons. The “Follow Through Plan”, needed to retain economic leadership of the United States well into the 21st century, should include all of the following critical levels of change and direction. The order...

Words: 3476 - Pages: 14

Premium Essay

The Public Needs to Know

...given the information formally in order to do their job. Having the integrity to acknowledge that you have come into contact with information that you do not need to know and to let the right people know immediately is the right thing to do. The third key area is Political and Religious activity and contributions. Chipotle has a strong policy regarding political or religious discussions while at the workplace. This policy helps avoid unnecessary arguments between people with very distinct views on either subject. Along with this, Chipotle has a strict policy against the use of its name, funds, assets or property for political or religious purposes, directly or indirectly. The company also has a policy not to make any political or religious contributions. Anyone who is unsure about this subject is recommended to contact the People Support Department before becoming involved in any activity that could be a political or religious violation of the code of conduct. Chipotle would like to ensure that their employees don't conduct any unlawful behavior. They have an honesty policy and are integrity based. As well as their honesty policy, they have a whistle-blower policy. A whistleblower is a person who reports the unethical and illegal behavior displayed by an employee. This policy is confidential and provided by an outside company that specializes in handling calls while protecting the privacy of the caller. It is important that Chipotle enforces their code of ethics to their......

Words: 758 - Pages: 4

Free Essay

Public Needs to Know

...The Public needs to Know - Draft Version Tonya Addison Dr. Ryan ENG115 11/02/2014 Opening a free clinic can be a very good way to give back to the community, but is also a challenging thing to do. There are many legal, supply, volunteer recruitment, fund-raising and management issues to be considered. First step would be to recruit a team consisting of doctors, office help, an accountant and legal attorney. Keep in mind your legal help should be familiar with medical laws and setting up nonprofit businesses. Be sure to get someone with plenty of experience in knowledge of how to fund programs, like Medicare or other local, state and federal programs. You should advertise in the newspaper, with local businesses and at local hospitals to bring volunteers. It would be good to hold meetings to discuss your future clinic needs and requirements of the staff. It would also be a great idea to consider recruiting volunteers for cleaning, reception and office work from local high schools or universities. Second decide on the main services that your clinic will offer which should be based on your local demographic. You can get information about the main needs of the local uninsured from the health department. For example, you can determine that there may be a large number of uninsured adults and children in your community or a large migrant population. In that case, you would want a bilingual staff or at least a people who can communicate with clients and patients that speak...

Words: 651 - Pages: 3

Free Essay

Public Needs to Know

...The Public needs to Know - Draft Version Tonya Addison Dr. Ryan ENG115 11/02/2014 Opening a free clinic can be a very good way to give back to the community, but is also a challenging thing to do. There are many legal, supply, volunteer recruitment, fund-raising and management issues to be considered. First step would be to recruit a team consisting of doctors, office help, an accountant and legal attorney. Keep in mind your legal help should be familiar with medical laws and setting up nonprofit businesses. Be sure to get someone with plenty of experience in knowledge of how to fund programs, like Medicare or other local, state and federal programs. You should advertise in the newspaper, with local businesses and at local hospitals to bring volunteers. It would be good to hold meetings to discuss your future clinic needs and requirements of the staff. It would also be a great idea to consider recruiting volunteers for cleaning, reception and office work from local high schools or universities. Second decide on the main services that your clinic will offer which should be based on your local demographic. You can get information about the main needs of the local uninsured from the health department. For example, you can determine that there may be a large number of uninsured adults and children in your community or a large migrant population. In that case, you would want a bilingual staff or at least a people who can communicate with clients and patients that speak...

Words: 651 - Pages: 3

Free Essay

The Public Needs to Know

...this intriguing subject ******ebook converter DEMO - www.ebook-converter.com******* ******Created by ebook converter - www.ebook-converter.com****** evidence any background in cryptology, which is precisely the science at issue. Having spent a 30-year career in both military and civilian pursuits in advanced communication and information science technologies—including deeply classified ventures in the intelligence field—and, also, having more than three decades in serious Biblical studies, I felt that a broader approach to the subject of hidden messages was appropriate. Are there really hidden messages in the Bible? If so, why? We will, of course, also explore the controversial equidistant letter sequences, their potential significance, and their latent dangers. And yet the most astonishing codes are of the kind for which you do not need a computer. We will explore some remarkable discoveries about the alphabets used in the Biblical texts and the microcodes which reveal some surprising aspects hidden behind the text itself. But beyond the “jots and tittles” of the microcodes, we will also explore some far more profoundly significant macrocodes—codes that reveal the strategic structure of the composite messages, codes that transcend the time domain of the message segment itself—and which have irrefutable implications regarding the source of these messages and their significance. We will begin our review by exploring some background in the art......

Words: 141008 - Pages: 565

Free Essay

The Need for Discapline in the Public Services

...What is the need of discipline? The need for discipline in the Public Services in my opinion is very important. If the uniformed public services did not have discipline and rules about the way their employees should behave, then they would be free to do anything they wanted and be able to get away with it without consequences. If there was no discipline, targets would not be met and jobs would not be done properly. Such as in the police when a crime has been committed and the suspect is being prosecuted there is paper work that needs to be done and if there is no discipline then it would not be done. Police – The Police need to be disciplined because there job is to protect the people in their area of derestriction. They need discipline so that they can do their duties as required, like arresting people: if they are not disciplined enough they could miss evidence or could arrest the wrong person because they couldn’t be bothered to work properly.(Codes of Professionalism) They need discipline so that they can report to emergencies properly and on time, like at a robbery: if they don’t get there on time they could miss the suspect or if they go there not paying attention someone could get hurt, whether that be hostages or people in the street. Fire and Rescue – Fire and rescue services like the Fire brigade need discipline because if they didn’t, the chance of people being harmed and the chance of accidents rises. They need discipline because they need to be able to get......

Words: 1054 - Pages: 5

Premium Essay

Taking a Company Public

...Taking the Company Public Keller Graduate School of Management-AC600 Online October 2011 Table of Contents Introduction 3 Step 1: Finding an Underwriter 3 Step 2: SEC Filing 4 Step 3: The Cooling Down Period 5 Step 4: Price per Share 5 Timeline to Public Trading 6 Conclusion 7 Works Cited 8 Introduction In the pages below, the steps required to take a company public will first be briefly described and then specifically detailed. After that a general timeline will be listed to help paint a picture of the approximate time needed to take a private company and turn it into a publicly traded business. Once the steps and timeline of going public have been discussed, the final paragraph will be a brief overview of everything mentioned previously in this article. Step 1: Finding an Underwriter The first step towards moving a private company into the public sector is finding a financial institution to invest in the company. Examples of such banks include Morgan Stanley and Merrill Lynch. The company should consider several different institutions for their merger into the public realm. This entity is one that will become very intertwined with the company and thus the company should seek out the one that best suits their needs. Some prefer the larger institutions with the history and track record for leading successful initial public offerings (IPOs) into the market. However, other companies will prefer......

Words: 1545 - Pages: 7