What Financial Information to Report and When

Name: What Financial Information to Report and When
Author: Robert Villanueva

Learn what financial info needs to be reported

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Course: On-Demand

(lively music) What financial information is necessary to report and when do you report it? We'll go over the factors that feed into this reporting, such as financial stakeholders, shareholders, when to convey the information and how to do it quickly and efficiently. There are two types of stakeholders: internal, which includes employees, executives, partners and subsidiaries, and external, which includes shareholders, customers and the financial community. In terms of what gets communicated, employees should be the first to hear about the company's financial news and activities. After all, that information, whether about sales, earnings, new business, mergers, legal actions or layoffs can have a direct impact on their jobs. There are times when employees aren't allowed to learn information before it's released in order to prevent trading on insider information. Insider information is a sensitive area, which companies must adhere to strict government regulations so that people inside a company don't trade on information they have access to before it's officially disclosed. This information can include announcements on earnings, initial public offerings, mergers and acquisitions, and many other areas. Company executives are also employees but they are in a different category. Executives are responsible for developing business plans for the company to act on and lead it toward its business and financial goals. But when it comes to financial communications, executives must accomplish two things. First, they must move the business strategy out of the executive suite and communicate it to employees so they can take ownership of it and know what's expected of them. Second, they have to lead the discussion with external financial stakeholders. The two primary external stakeholders of financial communications and investor relations are shareholders, and the financial community. The financial community spans financial advisors, analysts, lending institutions, brokerage firms, investment firms, credit rating agencies and business, financial and trade media that report on company, industry and market news. Since executives are the primary representatives for the company, they must be prepared to address any and all questions on the company's financial activities and performance. Many organizations work with companies that help them execute certain work using partnerships, subsidiaries, strategic alliances and more. These companies are considered internal stakeholders as they are an extension of the company and provide staff, technology and other specific capabilities. It's just as important to communicate with these companies as their businesses rely on the lead company's success. Since they also have employees, stakeholders and goals, they must be kept informed of financial activities as long as they're contributing to financial performance. It is also important to consider shareholders. For public companies, shareholders are often considered the most important and influential group of stakeholders because it's their money that's finding a major portion of the company's capital structure. There are two types of shareholders: individual and institutional. Individual shareholders are just that, individuals. Institutional investors are large entities, like banks, insurance companies, pension funds and hedge funds that buy and sell large volumes of securities. Communicating with shareholders involves people with business, finance and investment backgrounds and must be conducted according to various and specific disclosure requirements, mandated by both government regulations and company policies. Shareholders are entitled to four things. A claim on company earnings and assets equal to the value of each share owned. Voting rights to elect board officers at shareholder meetings or by absentee voting. Board-authorized dividends when offered and available. And the ability to purchase more stock before it's available to the public. But only when authorized by the company. Creditors are the institutions that lend money and offer credit to companies. The sizes of their loans vary but they can range from thousands to billions of dollars. A creditor establishes the loan's parameters and the borrower agrees to repay the loan at an agreed-upon interest rate. Companies borrow money to support short and long-term growth, as well as pay for things like property, equipment, technology and hiring talent.

Beginner Provider : Robert Villanueva 4 Lessons · 16m in Arabic, German, English, Spanish, French, Portuguese, Chinese

Course Description

This course introduces the different types of financial information that communications professionals interact with daily. It particularly focuses upon the financial information that’s required to be communicated to stakeholders.

Learning Objectives

What You'll Learn

Distinguish between routine and required financial communications
Identify what kinds of financial information must be released at certain times
Recognize the major elements of a company's quarterly and annual earnings filing
Explore company media events that communicate financial information, including earnings calls and shareholder meetings
Apply the methods used to convey financial information to stakeholders

Key Takeaways

The course introduces the different types of financial information that communications professionals interact with daily.
It focuses on the financial information that is required to be communicated to stakeholders.
Certain kinds of financial information are required to be released at specific times.
A company's quarterly and annual earnings filings have major identifiable elements that communications professionals should know.
Company media events such as earnings calls and shareholder meetings are used to communicate financial information.

Frequently Asked Questions

Who is this course for?

It is designed for communications professionals who interact with financial information daily and need to know what must be communicated to stakeholders.

What does this course cover?

It covers the different types of financial information, distinguishing routine from required communications, what information must be released at certain times, the major elements of quarterly and annual earnings filings, company media events that communicate financial information, and the methods used to convey it to stakeholders.

What topics are included in the lessons?

The lessons cover Understanding Financial Stakeholders, Methods to Convey Financial Information (Parts 1 and 2), and Earnings Calls and Shareholder Meetings.

What skills will I gain?

You will learn to distinguish routine and required financial communications, identify which financial information must be released and when, recognize the major elements of earnings filings, and understand the methods used to communicate financial information to stakeholders.