Full text of CHURCHILL FINANCIAL, LLC's X-17A-5 filed 2021-02-23 (period 2020-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ Note 1 - Nature of Business and Significant Accounting Policies Churchill Financial, LLC (the "Company") is a broker/dealer in securities registered with the Securities and Exchange Commission under the exemptive provisions of (SEC) Rule 15c3-3(k)(2)(ii). These provisions provide that all funds and securities belonging to customers be handled by a correspondent broker/dealer. In addition, the liability of the members of the Company is limited to the member's total capital contributions. Basis of Accounting The financial statements are prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Accounting Standards Codification ("ASC") as produced by the Financial Accounting Standards Board ("F ASB") is the sole source of authoritative GAAP. Adopted and Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016-13, *Financial Instruments-Credit Losses.* The standard requires a financial asset (including trade receivables) measured at amortized cost basis to be presented at the net amount expected to be collected. Thus, the income statement will reflect the measurement of credit losses for newly-recognized financial assets as well as the expected increases or decreases of expected credit losses that have taken place during the period. The Company adopted ASU 2016-13 on January 1, 2020 and did not record any material impact from the adoption. The accounting policies followed by the Company are as follows: Statement of Income For purposes of this statement, the Company recognizes commissions and related clearing expenses on a settlement date basis as security transactions occur. Revenue Recognition We generate commission revenue, which occurs when clients trade securities and for which our performance obligation is fulfilled on the trade date, and investment advisory fees, for which the performance obligation is performed over time. {1}------------------------------------------------ #### Note I - Nature of Business and Significant Accounting Policies (Continued) # Revenue Recognition (Continued) Advisory fees are billed to clients on a calendar quarter at the beginning of that period, using values as of the last business day of each immediately preceding calendar quarter. The value of the assets in an advisory account on the billing date determines the amount billed, and accordingly, the revenues earned in…Read the full text as markdown