[Code of Federal Regulations]
[Title 17, Volume 2]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR210.3-03]

[Page 234-235]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER II--SECURITIES AND EXCHANGE COMMISSION
 
PART 210--FORM AND CONTENT OF AND REQUIREMENTS FOR FINANCIAL STATEMENTS,
 
Sec. 210.3-03  Instructions to income statement requirements.

    (a) The statements required shall be prepared in compliance with the 
applicable requirements of this regulation.
    (b) If the registrant is engaged primarily (1) in the generation, 
transmission or distribution of electricity, the manufacture, mixing, 
transmission or distribution of gas, the supplying or

[[Page 235]]

distribution of water, or the furnishing of telephone or telegraph 
service; or (2) in holding securities of companies engaged in such 
businesses, it may at its option include statements of income and cash 
flows (which may be unaudited) for the twelve-month period ending on the 
date of the most recent balance sheet being filed, in lieu of the 
statements of income and cash flows for the interim periods specified.
    (c) If a period or periods reported on include operations of a 
business prior to the date of acquisition, or for other reasons differ 
from reports previously issued for any period, the statements shall be 
reconciled as to sales or revenues and net income in the statement or in 
a note thereto with the amounts previously reported: Provided, however, 
That such reconciliations need not be made (1) if they have been made in 
filings with the Commission in prior years or (2) the financial 
statements which are being retroactively adjusted have not previously 
been filed with the Commission or otherwise made public.
    (d) Any unaudited interim financial statements furnished shall 
reflect all adjustments which are, in the opinion of management, 
necessary to a fair statement of the results for the interim periods 
presented. A statement to that effect shall be included. Such 
adjustments shall include, for example, appropriate estimated provisions 
for bonus and profit sharing arrangements normally determined or settled 
at year-end. If all such adjustments are of a normal recurring nature, a 
statement to that effect shall be made; otherwise, there shall be 
furnished information describing in appropriate detail the nature and 
amount of any adjustments other than normal recurring adjustments 
entering into the determination of the results shown.
    (e) Disclosures regarding segments required by generally accepted 
accounting principles shall be provided for each year for which an 
audited statement of income is provided. To the extent that the segment 
information presented pursuant to this instruction complies with the 
provisions of Item 101 of Regulation S-K, the disclosures may be 
combined by cross referencing to or from the financial statements.

[45 FR 63687, Sept. 25, 1980. Redesignated at 47 FR 29836, July 9, 1982, 
and amended at 50 FR 25215, June 18, 1985; 50 FR 49532, Dec. 3, 1985; 57 
FR 45292, Oct. 1, 1992; 64 FR 1734, Jan 12, 1999]