Form and Content of Financial Statements
Rule 3-03 -- Instructions to Income Statement Requirements
(a) The statements required shall be prepared in compliance
with the applicable requirements of this Regulation.
(b) If the registrant is engaged primarily
(1) in the generation, transmission or distribution of electricity,
the manufacture, mixing, transmission or distribution of gas, the supplying
or distribution of water, or the furnishing of telephone or telegraph service;
(2) in holding securities of companies engaged in such businesses,
it may at its option include statements of income and cash flows (which
may be unaudited) for the twelve-month period ending on the date of the
most recent balance sheet being filed, in lieu of the income statements
for the interim periods specified.
(c) If a period or periods reported on include operations
of a business prior to the date of acquisition, or for other reasons differ
from reports previously issued for any period, the statements shall be reconciled
as to sales or revenues and net income in the statement or in a note thereto
with the amounts previously reported;
That such reconciliations need not be made
(1) if they have been made in filings with the Commission in prior
(2) the financial statements which are being retroactively adjusted
have not previously been filed with the Commission or otherwise made public.
(d) Any unaudited interim financial statements furnished
shall reflect all adjustments which are, in the opinion of management, necessary
to a fair statement of the results for the interim periods presented. A
statement to that effect shall be included. Such adjustments shall include,
for example, appropriate estimated provisions for bonus and profit sharing
arrangements normally determined or settled at year-end. If all such adjustments
are of a normal recurring nature, a statement to that effect shall be made;
otherwise, there shall be furnished information describing in appropriate
detail the nature and amount of any adjustments other than normal recurring
adjustments entering into the determination of the results shown.
(e)Disclosures regarding segments required by generally accepted accounting principles shall be provided for each year for which an audited statement of income is provided.
To the extent that the segment information presented pursuant to this instruction complies with the provisions of Item
101 of Regulation S-K, the disclosures may be combined by cross-referencing
to or from the financial statements.
Notice to Users: The Deskbook is made available
with the understanding that the University of Cincinnati College
of Law is not engaged in rendering legal, accounting or other professional
services. If legal advice or other expert assistance is required,
the services of a competent professional person should be sought. See Terms and Conditions of Use.