Current through Register Vol. 48, No. 52, December 27, 2024
The following notes shall be included in each application
filed. This information may be set forth on the face of the application
statement, in a supporting schedule or in notes appropriately captioned.
a) Summary of significant accounting
policies.
1) Principles of consolidation
including accounting for investments in subsidiaries not consolidated. A brief
description of the principles followed in consolidating the separate
financials. If there has been a change in the entities included or excluded
from the previous fiscal year, state the entities and the effect.
2) Depreciation and amortization methods.
State the policy followed in computing the provision for depreciation of
physical property and leasehold improvements, including the method and rates
used.
3) Pension and retirement
plan accounting. State a brief description of the essential provisions of the
plan and the related accounting and funding policies, including the cost of the
plan for the year. Also state whether or not the plan has been submitted to
and/or approved by the Internal Revenue Service.
4) Recognition and deferral of income taxes.
A) The following components of income tax
expense shall be disclosed in the income statement or a note thereto:
i) taxes currently payable,
ii) tax effects of timing differences,
and
iii) tax effects of operating
losses and the net deferred investment tax credits.
B) Include a brief description of the nature
of such timing differences. Include a brief statement as to the policy for
accounting for investment credit.
5) Amortization of intangible assets. Include
a brief statement as to the policy and method of amortization.
6) Intercompany profits and losses. Include a
brief description as to the amounts and the policy for the accounting for
intercompany items.
7) Deferred
charges and credits. State the nature and the write-off period of any
significant deferred charges.
8)
Any other accounting policies that materially affect the determination of
financial position, results of operation and changes in financial
position.
b) Assets
subject to lien. Briefly identify assets mortgaged, pledged or in any other way
subject to lien.
c) Defaults.
Briefly describe the nature and effect of any defaults of security agreements,
indentures and loan agreements.
d)
Restrictions on retained earnings. Briefly describe and give the amount of the
most restrictive of any such restrictions.
e) Commitments and contingent liabilities.
Disclose the amounts and nature of any significant commitments and contingent
liabilities.
f) Capital stock.
Describe the pertinent facts regarding any stock options, warrants or rights
outstanding.
g) Any other footnotes
essential to an understanding of the financial statements.
