Full text of CHURCHILL FINANCIAL, LLC's X-17A-5 filed 2025-02-28 (period 2024-12-31). 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 ("FASB") is the sole source of authoritative GAAP. 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. 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 the following three month period. Advisory revenues collected and agreed to by the client average 1.0% of the underlying assets as of December 31, 2024. # Statement of Cash Flows For purposes of this statement, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. At various times throughout the year, the Company may have balances in excess of Federal Deposit Insurance Corporation ("FDIC") insurance limits. {1}------------------------------------------------ ### Note 1 - Nature of Business and Significant Accounting Policies (Continued) #### Income Taxes The Company is organized as a limited liability company and has elected to be taxed as a partnership for Federal income tax purposes. Theref…Read the full text as markdown