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ARE 10-K (ITEM 7 DISCUSSIONS )BIASED WITHIN INDUSTRY?

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Are structure biased in your industry?
yes, i know, because have compared it to lots of other statements
80%
 80%  [ 4 ]
no
20%
 20%  [ 1 ]
Total Votes : 5

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Happymember
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ARE 10-K (ITEM 7 DISCUSSIONS )BIASED WITHIN INDUSTRY?  Reply with quote  

Hello and thank you for any your posting.

Recently checked 10-K financials and in part 7 ( where Management discussion of financial conditions) I got puzzled if their structure and topics are biased within industries? Whats about the industry you work? Please tell me.
Post Fri Apr 15, 2016 10:38 pm
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Happymember
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still working on it
Post Mon Apr 18, 2016 9:19 pm
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oldguy
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quote:
ITEM 7.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
See the information
under the caption “Management’s Discussion and Analysis” on pages X to Z


I looked at farm machinery. There were about 10 pages under ITEM 7. The data presented was complete, there were no patches of "omitted" data that would skew the results. The conclusions were backed by rationale in all cases. Ie, an auditor would be able to follow easily - and check whatever back-story that was being questioned.

IMO, it would be tough to slip strong bias into the SEC reporting process, the reporting is quarterly and the 10-K is an annual compilation of the quarterly reports. In practice, it is pretty hard for the Controller to instruct a 100-person accounting management group to lie about the corporate results on the 10--K (and have any hope of keeping the 'secret').
Post Mon Apr 18, 2016 10:48 pm
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Happymember
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Well, I ve been comparing American Apparel and DELL.

Since, I believe ITEM 7 (MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION) brooks from ITEM 6 ( SELECTED FINANCIAL DATA), these companies choose and discuss different financial data. American Apparel considerst Inventories, Total assets, Working capital. Dell discusses Cash, current assets, Total debt. I mean numbers. In item 6 they discuss numbers.

In Item 7 for example American Apparel speaks a lot about their chain of international stores, they name this part Comparable Store Sales with lots of data on this part. Dell speaks more about their customer segments, but nothing about their international store chain, provides no data on this part, nothing. Of coarse, Dell has more sales of intangibles, while AA depends more on retail. That is why their discussion differ.

How is MANAGEMENT discussion set? Does SEC or FASB employers tell industries where to point attention in their review? I dont believe its management own decision about which topics to discuss.

By the way, Dell uses consolidated unification of financial results in % of Revenue, while AA in % of Sales. How do SEC controllers consider it? Than probably everyone within industry should keep certain rules. Outwear industries would keep calculations in % of Sales, computer and software in
% of Revenue. Othervise SEC would get confused with all this information difference.

What are your points on this topic?
Post Wed Apr 20, 2016 12:01 am
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oldguy
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The format is restrictive, the pdf SEC blank form & instructions is available for download, I didn't go thru it - but the outline/questions are detailed. So not much variance from 'standard'.
Post Wed Apr 20, 2016 2:50 am
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rajat
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Without topics no one will help you Shocked
Post Mon Jul 18, 2016 1:14 am
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