Rule 20:10:12:14 Financial statement requirements.
statement requirements. Each applicant for a public grain buyer's
license shall submit financial statements for the most recently completed year
of operation. The financial statements 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
financial statements prepared by a certified or independent public accountant
at the review, or audit level, or detailed financial statements prepared by an
approved grain commission or management firm in accordance with generally
accepted accounting principles or international financial reporting standards.
An applicant for a class B grain buyer license shall submit
financial statements prepared by a certified or independent public accountant,
a grain commission or management firm, or other individual skilled in the
preparation of financial statements.
If the commission determines that the first financial
statements submitted are incomplete or otherwise unsatisfactory, the commission
may require the applicant to submit a second set of financial statements
prepared by a certified or independent public accountant in accordance with
general accepted accounting principles or international financial reporting
standards at the compilation, review, or audit level.
The financial statements must include a balance sheet and
statement of profit and loss. If a statement of retained earnings, a statement
of cash flows, a statement of changes in financial position, or notes and
disclosures to the financial statements have been prepared, those items must
also be submitted.
If the valuation of any assets are listed at fair market
value, those valuations shall be established or confirmed by a person
experienced in making assessments of the fair market value of fixed assets. The
valuations must be accompanied by a statement signed by the person who establishes
or confirms the values stating that such person:
(1) Has no interest in the property;
(2) Is not an employee of the applicant; and
(3) Has no personal bias with respect to the
Source: 24 SDR
190, effective July 15, 1998; 35 SDR 48, effective September 9, 2008; 40 SDR
39, effective September 9, 2013.
SDCL 49-45-7, 49-45-7.1.
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