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The Daily Technical #84: Tell me about the revenue recognition and matching principle used in accrual accounting.

How to answer "Where can you find the financial reports of public companies?"

January 06, 2025

Good morning. Welcome to the 84th edition of The Daily Technical. You’re here for one reason so let’s dive in.

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OVERVIEW OF YESTERDAY’S QUESTION
Where can you find the financial reports of public companies?

In the US, public companies are required to report periodic filings with the SEC, including an annual report (10-K) and three quarterly (10-Q) reports each year. These reports are available for free through SEC EDGAR.

In other countries, reporting requirements will vary, but most countries will require at least an annual report, while some will require an interim filing (i.e., a report in the middle of the company’s fiscal year). Only a few countries make company filings easily accessible through a central database, forcing analysts to rely on expensive financial data providers or dig through company websites manually to collect data.

The closest database to EDGAR in breadth and ease of use is Canada’s SEDAR database. In the United Kingdom, the closest EDGAR equivalent is Companies House, where private companies must also report their financials.

Common Mistakes

  1. Overlooking differences in reporting standards between countries. Always research the specific requirements for the country in question. For finance interviews in the US, it is ok to assume US public companies.

  2. Overlooking interim reports. Remember interim filings like the 10-Q in the US provide crucial updates and insights into a company's performance throughout the year.

TL;DR

  • U.S. financial reports: Access annual (10-K) and quarterly (10-Q) filings in the SEC's EDGAR database.

  • Global variations: Reporting requirements differ; most countries mandate annual reports, some require interim filings.

TODAY’S QUESTION
Tell me about the revenue recognition and matching principle used in accrual accounting.

Type your answer here. Within 60 seconds you’ll have custom feedback in your inbox.

THAT’S A WRAP
See you tomorrow,

Mike Lukasevicz
Founder @ HirePrep