The Motley Fool Discussion Boards

Previous Page

Learning to Invest / Reading Financial Statements

URL:  http://boards.fool.com/i-would-recommend-doing-random-checks-of-the-data-29987603.aspx

Subject:  Re: most accurate financial statistics on stocks Date:  4/19/2012  4:51 PM
Author:  zoningfool Number:  3877 of 3916

I would recommend doing random checks of the data on any site with the actual SEC filings to gauge the accuracy.

Also, not to confuse matters, but occasionally there is an error in the SEC filings themselves. I have personally found a few and contacted the companies to ask that an amended filing be made. In another case another TMFer (Howard Rourke) spotted an error in off balance sheet obligations for Netflix (the filing said it was $740K vs $740M) and the mistake had never been corrected, so I contacted Netflix and they filed an amended 10-Q within 24 hrs. Companies have to be as accurate as possible in their SEC filings especially because of Sarbanes Oxley which requires the CEO and CEO to sign-off on the documents with the 906 certifications subject to criminal sanctions and enforced by the US DoJ.

You can always tell an amended form by the suffix '/A' after it. The Netflix amended filing was a 10-Q/A. Here it is along with the reason it had to be filed.

http://sec.gov/Archives/edgar/data/1065280/00011931251129799...

My point is even the SEC filings can contain errors, but usually do not.
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us