Lesson 17: Understanding the 10-K: How Public Companies Report Financial Truth
Duration of Days: 5
Lesson Objective
Students will be able to:
Define a Form 10-K and its purpose.
Identify the key components of a Form 10-K.
Analyze the information contained within a Form 10-K to assess a company's financial health and future prospects.
Understand the importance of Form 10-K in investment decision-making.
What is a Form 10-K?
Why is the Form 10-K important for investors?
What are the key components of a Form 10-K?
How can investors use the information in a Form 10-K to make informed investment decisions?
What are the limitations of using Form 10-K information?
income statement, balance sheet, cash flow statement, statement of stockholder’s equity, MD & A, segment reporting, related party transaction, note disclosures.
A. Accounting Profession: Explain the role that accountants play in business and society.
2. Explain the need for a code of ethics in accounting and ethical responsibilities
required of accountants.
D. Financial Reports: Develop an understanding and working knowledge of
financial statements.
18. Describe the users and uses of financial information.
19. Describe the information provided in each financial statement and how the
statements relate.
The SAT measures student proficiency in math reading, language, and writing. With strong scores, accounting students set themselves up for successful entry into accounting and finance programs
Purpose:
The purpose of this lesson is to introduce students to the concept of Form 10-K and its significance in the world of finance and investing.
Description: Define the importance of correctly reporting information on annual report and the Form 10 K.
DOK Level 1: Recall
Define key terms related to Form 10-K, such as SEC, MD&A, and financial statements.
Identify the primary sections of a Form 10-K.
DOK Level 2: Skill/Concept
Describe the purpose of a Form 10-K.
Explain the key components of a Form 10-K, such as the business overview, MD&A, and financial statements.
Calculate financial ratios using data from a Form 10-K.
Identify potential risks and opportunities for a company based on its Form 10-K.
DOK Level 3: Strategic Thinking
Analyze the financial performance of a company over time using multiple Form 10-Ks.
Investors use Form 10-Ks to evaluate a company's financial health, growth potential, and risk factors before making investment decisions.
Students may think that understanding Form 10-K requires advanced financial knowledge. While it can be complex, basic financial literacy and critical thinking skills are sufficient to grasp the key concepts.
Sampling, modeling, one one instruction, Moodle. Paper or or online assignments, online instructional tools, videos, textbook or online textbook, excel real world application of information, Spanish version available for ELL students
Discussion Notes, Independent work: Online Working Papers/paper copy, Math Worksheet, Guided Questions Worksheet, Exit Ticket
Century 21, Accounting General Journal, 11th edition, online/paper edition. Paper or Online working papers (MindTap), class notes, Do Now, Exit Tickets,