Filing Diff

Find what materially changed between this filing and the last one.

Seat

ER/HF · IB · PE

Level

Analyst / Associate

Runtime

~20 min

Output

Material-changes memo with source citations

What this helps you accomplish

Companies bury changes in repetition: risk factors quietly reworded, accounting policies tweaked, segments redefined, legal exposures added. This workflow diffs consecutive filings and separates material changes from boilerplate churn.

Delegate · Verify · Decide

The core L3VLUP principle: AI output is never automatically correct. Know what to hand off, what to check, and what only you can own.

Delegate

AI is good enough to do this.

  • Section-by-section text comparison across both filings
  • Flagging added, deleted and reworded passages
  • Extracting changed accounting estimates into a table
  • Building the citation list with page/section references

Verify

AI accelerates you here, but a professional checks the work.

  • Flagged changes are real changes, not reformatting or renumbering
  • Quoted before/after language is verbatim from each filing
  • Numeric changes aren’t just presentation reclassifications — check the footnote

Decide

Judgment the human owns. This is the skill.

  • Which changes are material to your thesis or deal
  • Whether a new risk factor is lawyer boilerplate or a genuine signal
  • Whether a policy change flatters the numbers — and what to do about it

Inputs required

  • Current filing (10-K / 10-Q / annual report)
  • Prior comparable filing
  • Focus areas if any: risk factors, segments, accounting policies, legal

The workflow

  1. 1

    Align the documents

    Match sections between filings — companies reorder sections precisely when they change them.

  2. 2

    Diff the language

    Risk factors, MD&A, accounting policies, commitments and contingencies. New paragraphs and deleted paragraphs matter more than edits.

  3. 3

    Diff the numbers

    Restatements, reclassifications, segment redefinitions, changes in estimates (useful lives, reserves, assumptions).

  4. 4

    Rank materiality

    Score each change: does it affect earnings power, risk profile, or disclosure quality? Discard formatting churn.

  5. 5

    Write it up

    Memo ordered by materiality, each item with the exact before/after language and page reference.

Run this skill

Subject
Perspective
Sources
Output
Run

Any listed company, anywhere. Ticker or name.

Quality checklist

The output isn’t done until every box ticks.

  • Every item cites section + page in both filings
  • Changes ranked by materiality, not document order
  • At least one "nothing changed here and that itself is notable" observation where relevant

Practise the fundamentals first

Free, no sign-up — in the Labs.

Tools that speed this up

Part of the L3VLUP tool suite.

Next skill: Earnings Teardown