Accountants' Handbook Volume One: Financial Accounting and General Topics, Eleventh Edition

Chapter 3. SECURITIES AND EXCHANGE COMMISSION REPORTING REQUIREMENTS

Debra J. MacLaughlin, CPA

BDO Seidman LLP

Wendy Hambleton, CPA

BDO Seidman LLP

THE SECURITIES AND EXCHANGE COMMISSION

(a) CREATION OF THE SECURITIES AND EXCHANGE COMMISSION.

Congress created the Securities and Exchange Commission (the SEC, or the Commission) through the Securities Exchange Act of 1934 (the 1934 Act). The Securities Act of 1933 (the 1933 Act) was administered by the Federal Trade Commission before the SEC was established.

The 1933 Act and 1934 Act (the Securities Acts) are the main securities statutes of importance to accountants. The Commission also administers the Public Utility Holding Company Act of 1935, the Trust Indenture Act of 1939, the Investment Company Act of 1940, and the Investment Advisers Act of 1940. In addition, the Commission administers the Securities Investor Act of 1970 and also serves as adviser to the U.S. District Court in connection with Federal Bankruptcy Act reorganization proceedings involving registrants. The SEC's Web site is www.sec.gov.

(b) ORGANIZATION OF THE SECURITIES AND EXCHANGE COMMISSION.

The Commission is an independent agency of five commissioners. No more than three may be of the same political party. They are appointed by the President (with advice and consent of the Senate) to five-year terms, one term expiring each year.

One commissioner is designated by the President to act as chairman. The Commission has a professional staff, consisting of lawyers, accountants, ...