AICPA Annual Reports
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Description
We see no reason why, with slight variations, the same type of financial reports should not serve for listing, for registration and prospectuses under the Securities Act and for annual reports. This would, however, be impossible if the Commission should ask for anything like the amount of information now required for registration under the Securities Act. It would be impracticable for corporations of large size to furnish such information promptly. Furthermore, if companies are compelled by regulation to force on an investor a mass of statistics which he can not understand we believe that the purposes of the Acts may be defeated. We, therefore, strongly recommend that, so far as financial reports under the Securities Exchange Act are concerned, the instructions call only for balance-sheets and statements of income, of surplus and of reserves, prepared in the form and detail which the management and the independent accountants believe fairly present the financial condition and operating results of the corporation. These financial reports should be accompanied by a concise statement by the corporation as to the major accounting principles and practices followed during the period under review and any changes in such principles and practices since the preceding year. We also recommend that similar requirements govern the preparation of financial information under the Securities Act and that at the same time the instructions already issued under that Act be modified accordingly.
Publication Date
1934
Relational Format
Trade Publication Article
Publisher
Originally published by: American Institute of Accountants
Keywords
Financial statements -- Standards -- United States
Disciplines
Accounting | Taxation
Recommended Citation
American Institute of Accountants, American Society of Certified Public Accountants, and United States. Securities and Exchange Commission, "Financial statements under the Securities Act and the Securities Exchange Act" (1934). AICPA Annual Reports. 162.
https://egrove.olemiss.edu/aicpa_arprts/162
Comments
Copyright and permission to reprint held by: American Institute of Certified Public Accountants