Financial report deadlines determine when financials are filed by companies, but when companies are find it hard to release and meet with the report filing deadlines, the SEC takes over. This happens basically when companies find it hard to file their annual and quarterly reports within the give timeframe.
When companies fail to meet their report filing deadlines, it raises concerns and worries for the private and public investors that are stakeholders in the company. If you want to keep your accounts and financial records updated, then it is always advisable to hire Forensic and Investigative Accounting Services of the professional service providers.
The SEC deals with the compliance of primarily domestic publicly-trading companies to file both quarterly (Form 10-Q) and annual (Form 10-K) financial reports. While the quarterly report provides a brief summary and less detailed information of the company’s finances for a period within the fiscal year, the annual report provides a detailed and extensive overview of the company’s business practices and finances for the fiscal year.
The 10-Q and the 10-K filing both require a deadline determined by the filing status of the company. The final status of the company depends on the public float a company, which is the number of shares that are held by public investors multiplied by the share price. The filing status could be non-accelerated, large-accelerated, and accelerated for filers. In fact, in order to examine all the filters for the financial accounting, then CPA Expert Witness would be your best perspective.
Each companies are given deadlines according to their types of filers:
- Non-accelerated Filers (less than $75 million) are given 45 days to file their 10-Q deadline reports, and 90 days for their 10-K report deadline.
- Accelerated Filers (more than $75 million and less than $700 million) are given 40 days to file their 10-Q deadline reports, and 75 days for their 10-K deadline reports.
- Large Accelerated Filer ($700 million or more) are given 40 days to file their 10-Q deadline reports, and 75 days for their 10-K deadline reports.
Once a company refuses or is not able to comply with the filing of a 10-Q or a 10-K within the time frame for one reason or another, SEC rules require that they make use of a non-timely (NT) filing. The NT filing is a notice the company sends to state that the deadline has not been met due to a reason and that the actual filing will be filed within a specified range of time. The NT provides an additional 5 days for the 10-Q filing to be filed and an additional 15 days for the 10-K filing to be filed.
If the deadlines are met, the company is free from all penalization, but if the deadlines are not met, the company might see itself losing its SEC registration, negative market reactions, legal consequences, and delisting from stock exchanges.
Non filing timely, NT filing is bad news for any company and a warning sign for investors, customers, and even regulators, which is one of the major reasons the SEC pays keen interest in the financial report filing deadlines of companies.
HP Accounting has regularly dealt with companies who are in the ‘NT zone’ and has worked with them to turn around their reporting issues. Moreover, we are offering the best CPA Accounting Services as compared to our competitors so that your business can’t astray in the competitive business world.