2024 Brokers and Dealers in Securities - Accounting Guide

This guide is also available in a print edition.

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Everything you need to understand the broker-dealer industry

Loaded with accounting guidance and regulatory developments, this guide delivers the support you need to comply with numerous broker-dealer requirements.

More specifically, it provides:

• Background information on the securities industry, including broker-dealer participants, markets, the regulatory framework and emerging trends
• An introduction to broker-dealer functions, books and records
• An overview of COSO’s internal control framework, discussion of industry-specific risk assessment considerations and examples of typical broker-dealer internal controls
• Accounting guidance under FASB ASC 940, Financial Services — Brokers and Dealers; FASB ASC 606, Revenue from Contracts with Customers; FASB ASC 326, Financial Instruments — Credit Losses, and other applicable literature
• Reporting and disclosure guidance under GAAP and Regulation S-X, including illustrative financial statements and disclosures
• Coverage of applicable regulations and recent updates from regulatory bodies such as the SEC, FINRA and CFTC
• Illustrative sample compliance report and sample exemption reports required by SEC Rule 17a-5

New for 2024

The 2024 edition includes updated discussion of several topics, including:

• Digital assets, including accounting for the safeguarding of crypto assets
• Shortened securities transaction settlement cycles under new SEC rules
• Recently effective electronic recordkeeping and financial responsibility requirements under SEC rules
• Other recent SEC releases and FINRA rule amendments
• Fractional shares and fully paid securities lending
• Controls and monitoring activities, including broker-dealer information systems and application controls

Other updates to this edition are to conform the content to current accounting standards and regulatory requirements.

Key Topics

• Background on the securities industry and the functions performed by broker-dealers
• Interpretive guidance associated with industry-specific financial reporting and regulatory compliance
• Regulatory updates from key industry regulators (SEC, FINRA and CFTC)
• Broker-dealer risks and controls
• Sample compliance report and exemption reports required by SEC Rule 17a-5
• Comprehensive examples of financial statements, disclosures and supplementary schedules