Rule 20:10:12:14 Financial statement requirements.
20:10:12:14. Financial statement requirements. Each
applicant for a public grain buyer's license shall submit a financial statement
for the most recently completed year of operation. The financial statement may
not be prepared by the applicant or an employee of the applicant, and if the
applicant is a partnership or corporation, by an officer, shareholder, partner,
or an employee of the partnership or corporation.
An applicant for a class A grain buyer license shall submit a financial statement
prepared by a certified or independent public accountant at the review, or
audit level, or a detailed financial statement that is prepared by an approved
grain commission or management firm in accordance with generally accepted
An applicant for a class B grain buyer
license shall submit a financial statement prepared by a certified or
independent public accountant, a grain commission or management firm, or other
individual skilled in the preparation of financial statements in accordance with
generally accepted accounting principles.
If the commission determines that the
first financial statement submitted is incomplete or otherwise unsatisfactory,
the commission may require the applicant to submit a second financial statement
prepared by a certified or independent public accountant at the compilation,
review, or audit level.
The financial statement must include a
balance sheet and statement of profit and loss. If a statement of retained
earnings, a statement of changes in financial position, or notes and
disclosures to the financial statement have been prepared, those items must
also be submitted.
The financial statement must be
prepared in accordance with generally accepted accounting principles.
Depreciable assets must be shown at original cost minus accumulated
depreciation unless the applicant is an individual and generally accepted
accounting principles allow the valuation of depreciable assets at the lower of
cost or fair market value.
If the valuation of any assets are
listed at fair market value, those valuations shall be established by a person
experienced in making assessments of the fair market value of fixed assets.
Each valuation must be accompanied by a statement signed by the person who
establishes the values stating that such person:
(1) Has no interest in the
(2) Is not an employee of
the applicant; and
(3) Has no personal bias
with respect to the parties involved.
24 SDR 190, effective July 15, 1998; 35 SDR 48, effective September 9, 2008.
Authority: SDCL 49-45-6(5).
Implemented: SDCL 49-45-7, 49-45-7.1.
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