Regulation S-X
Regulation S-X is a set of rules that explains how companies must make their financial statements. Think of it like your piggy bank - you want to make sure you have a record of all the money you put in and take out. Companies have to do this too, but on a much bigger scale, so that people who want to invest or lend them money can see if they are doing a good job of managing their money.
These rules tell companies how to present their financial information in a clear and transparent way. This includes things like how to calculate their profits and losses, how to list their assets (the things they own, like buildings or equipment) and liabilities (the things they owe, like loans or payments to suppliers), and how to show how their cash flows in and out.
Regulation S-X also says what information companies should include when they talk about risks and uncertainties, like changes in technology or competition. This helps investors decide if they want to put their money into that company, knowing what the possible risks are.
Overall, Regulation S-X helps companies make sure they are being truthful about their finances and telling investors and lenders the whole story.
These rules tell companies how to present their financial information in a clear and transparent way. This includes things like how to calculate their profits and losses, how to list their assets (the things they own, like buildings or equipment) and liabilities (the things they owe, like loans or payments to suppliers), and how to show how their cash flows in and out.
Regulation S-X also says what information companies should include when they talk about risks and uncertainties, like changes in technology or competition. This helps investors decide if they want to put their money into that company, knowing what the possible risks are.
Overall, Regulation S-X helps companies make sure they are being truthful about their finances and telling investors and lenders the whole story.