Full text of D.A. DAVIDSON & CO.'s X-17A-5 filed 2020-11-25 (period 2020-09-30). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ Notes to Statements of Financial Condition September 30, 2020 and 2019 *Amounts in thousands, except per share amounts* ## **(1) Summary of Significant Accounting Policies** #### *Organization* D.A. Davidson & Co. (the Company) is a registered broker-dealer, investment adviser, and municipal advisor registered with the Securities and Exchange Commission (SEC) and is a member of the Financial Industry Regulatory Authority (FINRA). The Company is a Montana corporation that is a wholly-owned subsidiary ofD.A. Davidson Companies (the Parent). The Company's activities as a securities broker-dealer comprise several classes of services, including principal transactions, agency transactions, investment banking and municipal advisory and underwriting. The Company's activities as an investment adviser comprise both discretionary and nondiscretionary investment advisory services. These services are provided to its customers throughout the United Sates. The Company follows accounting standards set by the Financial Accounting Standards Board (F ASB). The F ASB sets generally accepted accounting principles (GAAP) that the Company follows to ensure consistent reporting of financial conrution, results of operations, and cash flows. References to GAAP issued by the F ASB in these footnotes are to the *FASB Accounting Standards Codification* (the Codification or ASC). # *(a) Recent Accounting Pronouncements* Effective October 1, 2019, the Company adopted the requirements of Accounting Standards Update (ASU) 2016-02, *Leases* (ASU 2016-02) and all subsequent amendments to the ASU (collectively, ASC 842). ASU 2016-02 was issued in February 2016 and requires organizations that lease assets to recognize on the statement of financial condition a right-of-use (ROU) asset and a lease liability for most leases. The Company adopted ASC 842 under a modified retrospective approach as of the date of adoption. Prior periods were not restated and continue to be reported in accordance with legacy GAAP. The Company elected to apply several of the available practical expedients, including: - Carry over of historical lease determination and lease classification conclusions - Carry over of historical initial direct costs balances for existing leases - Accounting for lease and non-lease components in real estate contracts in which the Company is a lessee as a single lease component. Adoption of ASC 842 resulted in the recognition ofROU assets…Read the full text as markdown