What is the SEC Form N-CSR?
The SEC Form N-CSR is a document that registered investment management companies must file with the Securities and Exchange Commission (SEC), within 10 days after the annual and semi-annual reports are released to shareholders. . Form N-CSR is a provision under Section 30 of the Investment Company Act of 1940 and Sections 13 and 15 (d) of the Stock Exchange Act of 1934.
- The SEC N-CSR form is a form that registered investment management companies must file with the Securities and Exchange Commission (SEC), which contains a number of essential elements of the company.
- The N-CSR form must be filed within 10 days after a company releases the annual and semi-annual reports to shareholders.
- Form N-CSR is a provision under Section 30 of the Investment Company Act of 1940 and Sections 13 and 15 (d) of the Stock Exchange Act of 1934.
Understanding the SEC Form N-CSR
Businesses must submit Form N-CSR electronically unless requesting a hardship waiver. The form generally includes the following information:
- A copy of the report to shareholders.
- A copy of the company’s code of ethics.
- The name of the financial expert who oversees the company’s audit committee.
- Disclosure of the chief accountant’s fees and services for the previous two fiscal years.
- Disclosure of listed registrants or reason for exemption from the audit committee.
- The company’s securities holdings
- Disclosure of proxy voting policies
Form SEC N-CSR and annual and semi-annual reports
The annual and semi-annual reports associated with the SEC Form N-CSR include 10-K and 10-Q, respectively. The 10-K is a comprehensive summary of a company’s performance that generally contains more detail than a traditional annual report. The 10-K has a particular focus on financial performance and risks, which, in theory, allows investors to make more informed decisions about buying and selling a corporation’s stocks and bonds.
Broken down further, the 10-K includes five distinct sections:
- An overview of the main operations of the company, including its product and service offerings.
- A breakdown of your sources of income
- Risk factors that describe the risks that the company currently faces or could face in the future, generally listed in order of importance.
- Selected financial data details specific financial information about the company for the past five years
- Management discussion and analysis of financial position and results of operations, known as MD&A, which provides the company with an opportunity to explain its business data from the previous fiscal year.
- Financial statements and supplemental data, including the company’s audited financial statements, such as its income statement, balance sheets, and cash flow statement (this also includes a letter from the company’s independent auditor, certifying the scope of its review).
A 10-Q includes much of the same information as a 10-K, but this report is submitted quarterly, not annually.
There are two parts to a 10-Q presentation. The first part contains relevant financial information for the period, including condensed financial statements, MD&A, market risk disclosures and internal controls. The second part contains any legal proceedings, unrecorded sales of equity securities, the use of proceeds from the sale of unregistered equity sales, preferred securities defaults and any other relevant attachments.