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Show r National Enterprise Page 11 Future Plans of the Securities Commission by Orrin G. Hatch explained. Management should identify the most Speaking recently before the important trends and comm- New York State Society of Certified Public Accountants, one of the SEC Commissioners indicated that the Agency is pointing in two futuristic directions, disclosed by a study of actions taken by the Commission during the past two unicate them effectively to shareholders. Although The S.E.C. has not required either financial statements or such analysis in the quarterly report to shareholders, the Commission is hoping that management will take the initiative and give such inforyears: 1. A continuous disclosure mation to shareholders. A major step proposed by system designed to meet the differing needs of differing the S.E.C is the inclusion of classes of investors and one notes to the financial statewhich will be more and more ments of certain limited data based upon the replacement 2 Increasing the responsibility of independent public accountants. Some of his remarks dealt with the recent adoption of SCOTTSDAL- E- The Board SEC Rules which substantially of Directors of Intermountain expand interim reporting by Petroleum Company announall registrants. Form 10-ced that a letter of intent has filings with the Commission been signed regarding the must now include balance proposed acquisition of Amsheets, fund statements and erican Diversified Properties, full statement of income Inc., Dallas, Texas. George F. future-oriente- d; costs of corporate assets. Specifically, The S.E.C is asking for four pieces of information: Two oriented to the income statement and two toward the balance sheet. These are costs of sales and depreciation, computed on replacement cost basis and the current replacement cost at the end of the year of productive capacity and inventories. The rationale behind this move is that such information be of great assistance in making judgments about the future. Accountants Under Pressure There is a continual pressure upon accountants to disclose better recognition of business uncertainties in corporate financial reporting. The S.E.C. is hopeful that careful, constructive disclosure of uncertainties will communicshould significantly assist ate the possible future trends investors in assessing the for investors in such business current economics of a enterprises. business enterprise which will Intermountain Petroleum Plans Acquisition Q rather income than abbreviated statement infor- mation. The rationale behind this is that it is necessary to see something of any com panys financial position at different points in its annual -- operation and at different points in its business cycle. The S.E.C. has, beyond the detailed financial statements, asked the management of reporting companies to supply an analysis of quarterly results in Form 10-- Q so that signifi- cant changes from quarter-to-quartand from one year to the next will be adequately er be significantly strengthened by the addition power will of American Diversified, according to Stoeberl, who added that discussions contem- plate that the transaction will be accomplished by an exchange of common and preferred stock. Stoeberl, president of InterAmerican Diversified Propmountain Petroleum Company and Richard G. Fagin, Chair- erties, Inc., whose executive man of the Board of American offices are located in Dallas, Diversified Properties, Inc., had revenues of $2,504,841 in issued a joint announcement 1974. The company has three concerning the further dis- operating subsidiaries, and it cussions being held by the two currently employs 59 people in companies in order to reach a its petroleum, real estate and It is recreation divisions, civil and definitive agreement. anticipated that the details of petroleum engineering and such agreement will be sub- consulting fields. American Diversified Propmitted to stockholders in conmeetannual erties, Inc.s oil and gas junction with the ing to be held as soon as interests and operations are located principally in Texas, possible. Intermountain Petroleum and it also has real estate Companys assets and earning holdings in the immediate m Dallas-For- area. t Worth metroplex Northwest Silica Calls Special Meeting SALT LAKE CITY-- A special meeting of shareholders has been called by Northwest Silica & Gypsum to vote on a proposed amendment to change the name of the company to Egbert and Backus Excavation Co., Inc. Northwest acquired all the assets of the Salt Lake company two weeks ago for four million shares of stock. The meeting will be held The SEC, as everyone knows, has proposed that businesses give forecasts and projections. A tumult of public response ensued with such vigor that the SEC is now rethinking its proposals, and I believe will take several months before they reappear. The SEC continually is trying to develop a disclosure system aimed at different classes of investors. They consider this a differential disclosure approach recognizing that there are many different investors who use many differing approaches in evaluating investment opportunities. So far, the SEC has required greater management analysis of financial results in textual statements, aimed primarily at th average investor who does not have the analytical background or who may not have the time to dig into the details himself. At the same time, it has required more detail about many elements in the financial statements for the professional analyst. There is a definite move by the SEC in the direction of increased responsibility of independent public accountants. The SEC is requiring increased disclosure of auditor-clien- t relationships and disclosure of agreements when changes in auditors occur. The SEC is encouraging the formation of audit committees. The SEC is adopting Feb. 2 3 at 3 :00 p.m. at 3 9 rules covering interim reportExchange Place, Salt Lake ing which will associate the City. auditor in a limited way with reported interim results. Finally, the SEC is requiring that all changes in accounting principles be approved by the auditor as representing, in his opinion, an improvement in financial reporting. Ive Got A Secret Nearly everyone has a secret these days and those who dont revel in exposing someone elsc's. Theres been much to do about Senate Intelligence Committee investigations and more recently the House Intelligence Commitee report. The House Committee suggests the Pentagon Defense Intelligence Committee be disbanded to make room for a House committee to oversee the The nations intelligence network. Pentagon cant be trusted after all, look at all the shenanigans that went on under its auspices. - We found it amusing that after the House Committee voted to withhold release of their findings until the President had reviewed (and censored) them, someone leaked the information to the press. Panelists will be limited to 'yes' and no questions. Can the House of Representatives be trusted with the nations intelligence agencies? |