Section 99.12. Grain dealer; financial statement.

 

(1)   General. A grain dealer's financial statement filed under s. 126.13 , Stats., shall comply with this section and s. 126.13 , Stats.

(2)   Liability disclosures. A financial statement filed under s. 126.13 , Stats., 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 filed under s. 126.13 , Stats., shall classify, as current liabilities, notes payable that do not have specific due dates.

(4)   Asset disclosures.

(a) A financial statement filed under s. 126.13 , Stats., 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 dealer has established an offsetting reserve for uncollectible notes and accounts receivable.

(b) A financial statement filed under s. 126.13 , Stats., 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)   Grain payment information . A grain dealer shall provide the following information in an attachment to every financial statement filed under s. 126.13 , Stats.:

(a) The total amount that the grain dealer paid during the grain dealer's last completed fiscal year, and during each month of that fiscal year, for producer grain procured in this state.

(b) The total amount that the grain dealer paid during the grain dealer's last completed fiscal year, and during each month of that fiscal year, for producer grain procured in this state using deferred payment contracts.

(c) The total number of bushels of producer grain, procured in this state, for which the grain dealer paid during each of the following periods:

1. The grain dealer's most recently completed fiscal year.

2. Each month of the grain dealer's most recently completed fiscal year.

(6)   Debt to equity ratio; liability adjustments.

(a) Solely for the purpose of calculating the debt to equity ratio under s. 126.13 (6) (c) 2. , Stats., a grain dealer may deduct liabilities identified in par. (b) from liabilities reported in the grain dealer's financial statement filed under s. 126.13 , Stats., 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 that liability adjustment.

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

(b) A grain dealer may deduct the following liabilities under par. (a) :

1. An amount that the grain dealer 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 dealer has borrowed from a lending institution to buy grain that the grain dealer has sold and shipped, provided that the grain dealer 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 dealer 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 dealer owns, holds in inventory on the balance sheet date, 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 grain dealer's grain given as security and held in inventory, whichever is less.

4. An amount, borrowed from a lending institution, that the grain dealer has used to pay for fertilizer, pesticides, herbicides or seed that the grain dealer owns, holds in inventory on the balance sheet date, 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 contained in an attachment to a reviewed or audited financial statement filed under s. 126.13 , Stats., the following requirements apply:

(a) The attachment shall be 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; CR 07-073 : cr. (5) (c) Register December 2008 No. 636 , eff. 1-1-09.

Note

"Affiliate" as defined in s. 99.01 (1) means a person who has significant control or influence. Significant control or influence is a phrase used under generally accepted accounting principals to describe a related party that has sufficient ownership interest to influence the operating and financial policies of an entity. Microsoft Windows NT 6.1.7601 Service Pack 1