2 CSR 60-4.110 - Preparation of Financial Statements
(1) The
following definitions shall apply to these rules:
(A) Balance sheet-A statement of assets,
liabilities and net worth;
(B)
Combined balance sheet-A statement that includes all business and personal
assets, liabilities and net worth of an individual;
(C) Director-The director of the Missouri
Department of Agriculture or a designated representative;
(D) Generally accepted accounting principles
(GAAP)-The conventions, rules and procedures necessary to define accepted
accounting practice, which include broad guidelines of general application as
well as detailed practices and procedures generally accepted by the accounting
profession and which have substantial authoritative support from the American
Institute of Certified Public Accountants;
(E) Personal balance sheet-A statement of
personal assets, liabilities and net worth for an individual including the net
equity of all business interests other than those for which an application is
being made;
(F) Certified public
accountant-Any person permitted to engage in the practice of public accounting
under Chapter 326, RSMo;
(G)
Qualified accountant-A certified public accountant competent in the application
of GAAP provided that this person is not the applicant. Also, that if the
applicant is an individual, this person is not an employee of the applicant, or
if the applicant is a corporation or partnership, this person is not an
officer, shareholder, partner or employee of the applicant; and
(H) Statement of income and expenses-A
statement showing the income and expenses of a particular entity for a given
period of time.
(2) All
applicants for a Missouri grain warehouse license shall submit a balance sheet
and a statement of income and expenses. The financial statements shall be no
more than six (6) months old, unless waived by the director. If waived, the
director may require interim financial statements as s/he deems necessary. The
financial statements shall be prepared by a qualified accountant in accordance
with these rules. If the applicant's qualified accountant has prepared a
statement of retained earnings, a statement of changes in financial position,
and notes and disclosures to the financial statements, then these items shall
also be submitted.
(3) The
applicant shall submit copies of the financial statements submitted to the
applicant's bonding company, or submitted to the Commodity Credit Corporation
in support of a Uniform Grain Storage Agreement, or submitted to the United
States Department of Agriculture in support of a federal warehouse license if
the financial statements are prepared as of a different date, or for a
different period of time, or to show different amounts than those submitted
with the application for a Missouri grain warehouse license.
(4) The financial statements required by
these rules shall be prepared in accordance with GAAP except as otherwise
allowed or required by these rules.
(5) All financial statements required by
these rules shall be prepared on the accrual basis of accounting unless waived
by the director. If waived, the director may require the applicant to provide
an estimate, prepared by the applicant's qualified accountant, of the effect of
converting the financial statements to the accrual basis of
accounting.
(6) If the applicant is
an individual, the applicant shall submit a balance sheet and a statement of
income and expenses for the proprietorship business in accordance with GAAP. If
the applicant is an individual, the applicant also shall submit a personal
balance sheet. The applicant, in lieu of submitting a business and a personal
balance sheet, may submit a combined balance sheet. Personal non-business
assets should be shown at the lower of historical cost or estimated fair market
value. If the applicant is an individual and desires to show estimated current
values that are higher than the historical cost basis for the proprietorship
business balance sheet, the personal balance sheet, or the combined balance
sheet, the estimated current values should be accompanied by a qualified
appraisal. If a qualified appraisal is accepted, appropriate adjustments to the
balance sheet will be made by the Missouri Department of Agriculture.
(7) If the applicant is a partnership, the
applicant shall submit a balance sheet and a statement of income and expenses
for the partnership business in accordance with GAAP. Only the partnership
assets and liabilities will be considered in computing net worth. The personal
financial statements for the individual partners will not be considered in
computing net worth.
(8) If the
applicant is a partnership and desires to show estimated current values that
are higher than the historical cost basis, the estimated current values should
be accompanied by a qualified appraisal. If a qualified appraisal is accepted,
appropriate adjustments to the balance sheet will be made by the Missouri
Department of Agriculture.
(9) If
the applicant is a partnership, a copy of a written partnership agreement shall
be submitted.
(10) If the applicant
is a corporation, the applicant shall submit a balance sheet and a statement of
income and expenses for the corporation in accordance with GAAP. If the
applicant is a corporation and desires to show estimated current values that
are higher than the historical cost basis, the estimated current values should
be accompanied by a qualified appraisal. If a qualified appraisal is accepted,
appropriate adjustments to the balance sheet will be made by the Missouri
Department of Agriculture.
(11) If
the applicant is a corporation and is a party of a majority- or wholly-owned
corporate parent/subsidiary relationship, the applicant shall submit the
financial statements required by these rules and the consolidated financial
statements. For licensing purposes, the director may use the applicant's net
worth or the consolidated net worth. If the applicant is a wholly- or
majority-owned subsidiary, the director may require the applicant to submit a
corporate letter of guaranty from the parent company on a form prescribed by
the director.
(12) If the applicant
is a corporation and is a part of a group of related corporations that do
business with each other where the same individual or partnership owns a
controlling interest in all of the corporations, the applicant shall submit the
required financial statements for the applicant and the combined financial
statements for the group of related corporations.
(13) In determining allowable net worth for
licensing purposes, the director shall disallow the following assets if s/he is
of the opinion that these assets are withdrawals of equity or that these assets
are uncollectible:
1) notes receivable due
from stockholders,
2) accounts
receivable,
3) advances to
affiliates,
4) investments or
equities in cooperatives or
5)
goodwill. The director also may disallow other assets that in his/her opinion
are or may be withdrawals of equity, or that are or may be
uncollectible.
Notes
State regulations are updated quarterly; we currently have two versions available. Below is a comparison between our most recent version and the prior quarterly release. More comparison features will be added as we have more versions to compare.
No prior version found.