10-Q Checklist

Considerations for the 2018 10-Q Quarterly Report Season

Welcome to the 2018 10-Q reporting season. Form 10-Q is a comprehensive periodic report that issuers use to provide a window on the company’s financial situation on a quarterly basis.

Among other things, the 10-Q provides a focused summary of your company’s finances, risks, opportunities and current operations. It also delivers one of the clearest messages to investors and regulators on how your company intends to manage developing trends and challenges.

We want to help you plan for the 10-Q season, which is why we put together a checklist – based on recent trends—of key topics impacting today’s business climate. As you go through the 10-Q
preparation process, keep these matters on your radar as they will drive upcoming periodic reporting.

Key 10-Q Considerations for 2018

  • Review updated SEC cybersecurity guidance. While Cyber-fatigue may be realized, expanded
    cybersecurity reporting and review by examiners will take full swing in upcoming periodic reports
  • Review areas prone to duplicative or inconsistent disclosures such as MD&A, Risk Factors, and CD&A
  • Review staff comment letters addressing new revenue recognition requirements to identify best practices
  • Prepare for pay ratio disclosure and consider an employee communication plan. Consider how median comp will be viewed by investors and customers
  • Incorporate timely disclosure on former and/or departing directors
  • Review revised PCAOB standards and rule changes specifically focusing on critical audit matters (CAMs) and auditor independence
  • Review FASBs recent accounting updates including update No. 2014-09
  • Review recent staff comment letters to better gauge SEC’s evolving stance on non-GAAP reporting
  • Evaluate SAB 118 regarding accounting for the income tax effects of the Tax Cuts Act
  • Factor in evolving industry trends and business practices into risk factor reporting to minimize generic or duplicative risk reporting that may get flagged by SEC examiners