Amended 10-K Due to Material Weakness – Explanatory Paragraph
Here is an example of a company that had to amend its 10-K after a material weakness in financial controls was discovered. Here is the explanatory paragraph in the 10-K and the updated Item 9A on Internal Controls.
How to Handle a Non-Traditional Year End
There are a few things to keep in mind if you have a non-traditional year end. Especially if it results in non-comparative data. For instance, if you have a 52/53-week year end, you will need to explain the extra week. Here are some other considerations.
Change in Non-GAAP Financial Reporting
Here is a great example of materials provided to explain a change in non-GAAP financial reporting. Included are items from the webcast, a presentation and a financial schedule. Pure transparency at its finest.
Change in Accounting Principle – Release
Here is not only a great example of a detailed and comprehensive earnings release, but one that touches upon a Change in Accounting Principle and Recasting of prior year earnings. It is a great example of hitting it head on and giving a complete perspective.
Change in Reporting Segments – Example Schedule
Here is a great example of a schedule that you can disclose to show the details of a change in reporting segments on historical financials.
How to Stop Disclosing a Metric
You might think you can never stop disclosing a metric once you have started. However, that is not the case. You can stop disclosing any metric you want at any time. Here are some tips and suggestions for you when you have decided to discontinue disclosing a metric.
Change in Reporting Segments
Although not as critical to modeling as the financial statements, segment reporting is one of the more popular footnote disclosures. Accordingly, there are some key things you will want to consider if you look to modify your segment reporting. Here are some tips.
Pro Forma Information – Non-Recurring Events
From time to time, you will have non-recurring events that may make it challenging to understand the ongoing business trends and expectations. Pro Forma financial information can help you tell your story. Here are some things to consider when using pro forma information.
Internal Controls Material Weakness Disclosure
This White Paper provides the key considerations to handling investor awareness of a Material Weakness in your internal controls that you are required to disclose.