Small Business Investment Companies; Accounting and Financial Reporting Standards

Resumen

The Small Business Administration (SBA) currently provides accounting guidance for Small Business Investment Companies (SBICs) in two appendices to SBA regulations. These appendices have not been significantly revised since 1986. Subsequent changes in generally accepted accounting principles and in the SBIC program have caused the accounting standards to become outdated and incomplete. This rule updates the standards for accounting and financial reporting by SBICs, as well as the guidelines for Independent Public Accountants (IPAs) performing audits of SBIC financial statements. The current appendix I includes SBA Form 468, on which SBICs prepare the required Annual Financial Report to SBA. The current appendix II includes the standard chart of accounts for SBICs. This rule deletes both the Form 468 and the chart of accounts from the regulations and consolidates the remaining material in appendices I and II into one appendix.