Section 99.24. Grain warehouse keeper; financial statement.

 

(1)   General. A grain warehouse keeper's financial statement, filed under s. 126.28 , Stats., shall comply with this section and s. 126.28 , Stats.

(2)   Liability disclosures. A financial statement shall include a detailed description of all notes, mortgages and other long-term liabilities not due or payable within one year. The description shall be included in the financial statement notes, or as an attachment to the financial statement. The description shall indicate the nature of the liabilities, the due dates and the payment terms.

(3)   Liability classification . A financial statement shall classify, as current liabilities, notes payable that do not have specific due dates.

(4)   Asset disclosures.

(a) A financial statement shall specifically identify and explain, in the financial statement notes or as an attachment to the financial statement, the following assets:

1. Every non-trade note or account receivable from an officer, director, employee, partner, or stockholder, or from a member of the family of any of those individuals.

2. Every note or account receivable from a parent organization, a subsidiary, or an affiliate, other than an employee.

3. Every note or account that has been receivable for more than one year, unless the grain warehouse keeper has established an offsetting reserve for uncollectible notes and accounts receivable.

(b) A financial statement shall include at least one of the following:

1. An allowance for doubtful or uncollectible receivables. The notes to the financial statement shall describe the method used to account for doubtful or uncollectible receivables.

2. A summary classifying the age of all notes and accounts receivable.

(5)   Additional information. A financial statement shall separately and clearly disclose, in the financial statement notes or as an attachment to the financial statement, all of the following information for each kind of grain as of the date of the balance sheet:

(a) The total number of bushels of grain in the warehouse keeper's warehouse.

(b) The total number of bushels of grain forwarded to another warehouse keeper, for which the warehouse keeper filing the financial statement holds a warehouse receipt.

(c) The combined total bushels of grain under pars. (a) and (b) .

(d) The total number of bushels of grain that the warehouse keeper is obligated to store for depositors who hold original negotiable warehouse receipts issued by the warehouse keeper.

(e) The total number of bushels of grain that the warehouse keeper is obligated to store for depositors who hold original nonnegotiable warehouse receipts issued by the warehouse keeper.

(f) The total number of bushels of grain that the warehouse keeper is obligated to store for depositors who hold scale tickets or other types of receipts, except for negotiable and nonnegotiable warehouse receipts, issued by the warehouse keeper.

(g) The combined total bushels of grain, under pars. (d) to (f) , that the warehouse keeper is obligated to store for depositors.

(h) The total number of bushels of grain to which the warehouse keeper claims title.

(i) The total number of bushels of grain for which the warehouse keeper has issued outstanding negotiable warehouse receipts that are held as collateral by creditors.

(j) The warehouse keeper's net grain position.

(6)   Debt to equity ratio; liability adjustments.

(a) Solely for the purpose of calculating the debt to equity ratio under s. 126.28 (6) (c) 2. , Stats., a grain warehouse keeper may deduct liabilities identified under par. (b) from liabilities reported in the grain warehouse keeper's financial statement if all the following apply:

1. The individual liability adjustments and offsetting assets are disclosed in the financial statement notes or in an attachment to the financial statement.

2. No individual liability adjustment exceeds the corresponding asset, identified in a note or attachment to the financial statement, that justifies the liability adjustment.

3. Liability adjustments and offsetting assets are determined as of the date of the balance sheet.

(b) A grain warehouse keeper may deduct the following amounts under par. (a) :

1. An amount that the grain warehouse keeper has borrowed from a lending institution and deposited with a commodities broker to maintain an account to hedge grain transactions. The amount deducted may not exceed the amount owed to the lending institution or the amount deposited in the hedge account with the commodities broker, whichever is less.

2. An amount that the grain warehouse keeper has borrowed from a lending institution to buy grain that the warehouse keeper has sold and shipped, provided that the grain warehouse keeper has a collectible account receivable for that grain on the date of the balance sheet. The amount of the deduction may not exceed the amount receivable by the grain warehouse keeper or the amount owed to the lending institution, whichever is less.

3. An amount, borrowed from a lending institution, that is secured by grain that the grain warehouse keeper owns, holds in inventory on the date of the balance sheet, and shows as inventory on the balance sheet. The amount deducted may not exceed the amount owed to the lending institution or the value of the warehouse keeper's grain given as security and held in inventory, whichever is less.

4. An amount, borrowed from a lending institution, that the grain warehouse keeper has used to pay for fertilizer, pesticides, herbicides or seed that the grain warehouse keeper owns, holds in inventory on the date of the balance sheet, and shows as inventory on the balance sheet. The amount deducted may not exceed the amount owed to the lending institution or the cost of the fertilizer, pesticides, herbicides and seed purchased with the borrowed funds, whichever is less.

(7)   Attachments. If information required under this section is provided in an attachment to a reviewed or audited financial statement, the following requirements apply:

(a) The attachment shall be prepared on the letterhead of the certified public accountant who reviewed or audited the financial statement.

(b) The certified public accountant who reviewed or audited the financial statement shall certify, in the attachment, whether the certified public accountant has reviewed or audited the attachment.

CR 02-113 : cr. Register April 2003 No. 568 , eff. 5-1-03.