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Technical

Brokers and Dealers in Securities - Accounting Guide Logo aicpa

  $69.00 - 99.00 |   AICPA |   Oct 2018 |   AICPA Store
The up-to-date industry-specific guidance you need.
Who Will Benefit?
  • It is critical to understand the complexities of the specialized accounting and regulatory requirements needed for the broker-dealer industry. This comprehensive guide has been designed to be beneficial for a wide range of professionals within the broker-dealer industry.
Key Features
  • Coverage of regulatory updates from key industry regulators (SEC, CFTC, and FINRA).
  • Examples of financial statements, disclosures, and supplementary schedules.
  • Discussion and interpretive guidance associated with industry specific financial reporting and regulatory compliance.

How and at what date should brokers and dealers in securities implement the new revenue recognition standard FASB ASC 606, Revenue from Contracts with Customers? Addressing this question in detail, the 2018 edition contains revenue recognition implementation issues for brokers and dealers in securities applying FASB ASC 606 and related interpretations from the FASB/IASB Joint Transition Resource Group for Revenue Recognition (TRG). Specifically, the following revenue streams are addressed:

  • Commission income
  • Recognition on Trade Date
  • Underwriting revenues
  • Soft dollars
  • Investment banking M&A advisory fees
  • Selling and distribution fee revenue

Other related topics include: Scope; Costs associated with investment banking advisory services; and, Principal versus agent: Costs associated with underwriting. In addition, this guide includes interpretations from the TRG which may be relevant for management of asset management entities in applying FASB ASC 606. Specifically, the following revenue streams are addressed:

  • Management fee revenue
  • Excluding performance fee revenue
  • Incentive or performance fee revenue
  • Excluding incentive-based capital allocations.

This guide also includes content from a recent AICPA Q&A which addresses the question, "Is a broker, dealer, or future commission merchant considered a public business entity?" This determination is important when implementing new accounting pronouncements, such as FASB ASC 606, on the appropriate effective date. Other updates to this edition are to conform the content to current accounting standards and regulatory requirements.

Topics covered:
  • Management accounting: Technical: Financial accounting & reporting: Professional accounting standards, Intermediate
  • Management accounting: Technical: Financial accounting & reporting: Professional accounting standards, Advanced
  • Management accounting: Technical: Financial accounting & reporting: Financial reporting & compliance, Intermediate
  • Management accounting: Technical: Financial accounting & reporting: Financial reporting & compliance, Advanced
  • Financial accounting & reporting: Technical: FASB financial accounting & reporting: Fair value, Intermediate
  • Financial accounting & reporting: Technical: FASB financial accounting & reporting: Fair value, Advanced
  • Financial accounting & reporting: Technical: Internal control, Intermediate
  • Financial accounting & reporting: Technical: Internal control, Advanced
  • Financial accounting & reporting: Technical: SEC regulatory compliance & reporting, Intermediate
  • Financial accounting & reporting: Technical: SEC regulatory compliance & reporting, Advanced
  • Financial accounting & reporting: Technical: FASB financial accounting & reporting: Financial instruments, Intermediate
  • Financial accounting & reporting: Technical: FASB financial accounting & reporting: Financial instruments, Advanced

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