2025 Brokers and Dealers in Securities — Accounting Guide

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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 2025

The 2025 edition includes updated discussion of several topics, including:

• Digital assets, including recent SEC staff releases and Staff Accounting Bulletin No. 122
• Segment reporting, including interpretative guidance approved by FinREC, on the application of FASB ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, by broker-dealers
• Income tax disclosures, including conforming changes for ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures
• Recently issued SEC rules related to broker-dealer reserve requirements, electronic filing, FOCUS reports, and covered clearing agencies for U.S. Treasury securities
• Other recent SEC releases and FINRA rule amendments
• Hypothecation, short selling, and chaperoning arrangements Other updates to this edition 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