What is SEC Form 18-K?
SEC 18-K Form applies to non-U.S. sovereign governments and their political entities to file annual reports with the Security and Exchange Commission (SECOND). The requirement to submit the form only applies if the foreign government or its political entities have debt securities registered under Schedule B and have listed the securities on a US stock exchange. swap gladly. It is more commonly known as the Annual Report for Foreign Governments and Political Subdivisions.
Key points to remember
- SEC 18-K Form applies to debt securities of non-US sovereign governments and their political entities registered under Schedule B and listed on a US stock exchange.
- Schedule B is part of the Securities Act of 1933 which allows foreign entities and their political entities to offer and sell debt securities in the United States.
- SEC Form 18-K must be filed within nine months of the issuer’s fiscal year end after March 31.
- Detailed information and details must be provided in the Form 18-K, such as total debt, imports and exports, material amendments and dispositions, gold deposits, and securities holdings information.
Understanding SEC Form 18-K
Form 18-K states that only entities that have debt obligations registered under Schedule B must file the form. Annex B is part of the Securities Act of 1933 which allows foreign entities and their political entities to offer and sell debt securities in the USA
For non-U.S. governments and their political entities, the SEC requires foreign issuer disclosures on an annual basis to include anything that could have a material long-term impact. solvency of the Security or its issuer. This includes a description of the general effect of any material change in the rights of securityholders and the circumstances of any failure to pay installments as originally promised in the initial offering of the security.
SEC Form 18-K also requires filers to provide various background documents financial stateincluding the Filer’s latest annual budget and statements regarding the Filer’s indebtedness.Information is available electronically to all applicants via the Collection and retrieval of electronic data (EDGAR system).
SEC Form 18-K serves a virtually identical function to SEC Form 10-K, a filing typically associated with the annual report of national companies. However, SEC Form 18-K often provides information that investors cannot find elsewhere due to minimal analyst coverage focused on foreign issuers let alone coverage of their political and municipal subdivisions.
Filing of SEC Form 18-K
Form CE 18-K must be filed within nine months of the fiscal year– end after March 31. The report must be filed with the stock exchange on which the securities are listed and with the SEC. Only one copy must however be signed.
The information required in Form 18-K is comprehensive and covers a wide range of topics and areas. Some of the disclosures include total internal funding outstanding debtexternal debt funded, material changes, provisions and circumstances of default director or interest, statements of income and expenditure, and a breakdown of information regarding holdings of securities.
In addition to providing this information, SEC Form 18-K requires disclosure disclosures. This includes all copies of amendments or modifications, annual budgets, laws or decrees, and any other documents that may be required. If the information is not in English, the original documents as well as an English translation must be provided.