Full text of JAMES T. BORELLO & CO.'s X-17A-5 filed 2019-11-26 (period 2019-09-30). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ ## JAMES T. BORELLO & CO. # NOTES TO FINANCIAL STATEMENTS ## YEAR ENDED SEPTEMBER 30, 2019 #### NOTE I - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLI CIES Organization - James T. Borello & Co. (the "Company") was incorporated in the state of Illinois on February 14, 1990. The Company is registered as a broker/deal er with the Securiti es and Exchange Commission (SEC) and IS a member of the Financial industry Regulatory Authority (FIN RA). The Company is also registered with the SEC as an investment advisor. The Company's principal business acti vities are the sale of seclll'ities and providing investment advice. Basis of Presentation - The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("GAAP"). #### Revenue Recognition: Effecti ve October 1, 20 18, the Company adopted ASC Topic 606, *Revenue pom Contracts with Customers* ("ASC Topic 606"). The new revenue recognition guidance requires that an entity recognize revenue to depict the transfer of promised goods 0 1' services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods 01' services. The guidance requires an entity to follow a five step model to (a) identifY the contract(s) with a customer, (b) identi fy the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to the performance obligations in the contract, and (e) recognize revenue when (or as) the entity satisfi es a performance obligation. In determining the transaction price, an entity may include variabl e consideration only to the extent that it is probable that a significant reve rsal in the amount of cumulative revenue recogni zed would not occur when the uncertainty associated with the variable consideration is resolved. The Company applied the modifi ed retrospective method of adoption which resulted in no adjustment to retained earnings as of October I, 20 18. The new revenue recognition guidance does not apply to revenue associated with financial instruments, interest income and expense, leasing and inslll'ance contracts. Seclll'ities Transactions - Commission revenue and rel ated expense arising from securities transactions are recorded on the trade date basis, whi ch is the same business day as the transaction date. {1}------------------------------------------------ # .…Read the full text as markdown