Full text of TRANSITIONAL BROKER LLC's X-17A-5 filed 2023-03-09 (period 2022-12-31). Broker-dealer annual report from SEC EDGAR — readable, searchable, and available as markdown for AI agents.
{0}------------------------------------------------ # **Transitional Broker, LLC Notes to Financial Statements For the Year Ended December 31, 2022** # 1. Organization and Nature of Business Organization Transitional Broker, LLC (the "Company") doing business as Transitional Broker. The Company is a limited liability company organized in the State of Utah. The Company is a registered brokerdealer in securities under the Securities and Exchange Act of 1934. The Company is a member of the Financial Industry Regulatory Authority ("FINRA"), and the Securities Investor Protection Corporation ("SIPC"). Under its membership agreement with FINRA and Pursuant to Rule 15c3-3{k)(l), the Company only does direct way variable annuity business. 2. Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared with accounting principles generally accepted in the United States of America ("GAAP"). ### Accounts Receivable Policy Accounts receivables are carried at original invoice amount less an allowance for doubtful accounts, if needed, based on a review of all outstanding amounts. Management determines the allowance for doubtful accounts on an account-by-account basis. Receivables are written-off when deemed uncollectible. Recoveries of receivables previously written-off are recorded when received. No interest is charged on outstanding receivables. As of December 31, 2022, no allowance was recorded for doubtful accounts. ### Revenue Recognition The Company follows ASC 606 when recognizing revenue. To recognize revenue the Company follows a five-step model: (a) identify the contract(s) with a customer, (b) identify the performance obligations in the contract, (c) determine the transaction price, (d) allocate the transactions price to the performance obligations in the contract, and (e) recognize revenue when the entity satisfies the performance obligation. Revenues are from commissions on variable annuities including trail commissions. The revenues are recognized in the period the contract is completed. The company's performance obligations are met when the contract is complete, and commissions have been issued. {1}------------------------------------------------ # **Transitional Broker, LLC Notes to Financial Statements For the Year Ended December 31, 2022** ### Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of a…Read the full text as markdown