2026 Brokers and Dealers in Securities — Accounting Guide

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Everything you need to understand the broker-dealer industry

Packed with accounting guidance and regulatory developments, this guide delivers the support you need to comply with numerous broker-dealer requirements.

More specifically, it provides:

• Background information on the securities industry, including broker-dealer participants, markets, the regulatory framework, and emerging trends
• An introduction to broker-dealer functions, books, and records
• An overview of COSO’s internal control framework, discussion of industry-specific risk assessment considerations, and examples of typical broker-dealer internal controls
• Accounting guidance under FASB ASC 940, Financial Services—Brokers and Dealers; FASB ASC 606, Revenue from Contracts with Customers; FASB ASC 326, Financial Instruments—Credit Losses; and other applicable literature
• Reporting and disclosure guidance under GAAP and Regulation S-X, including illustrative financial statements and disclosures
• Coverage of applicable regulations and recent updates from regulatory bodies such as the SEC, FINRA, and CFTC
• Illustrative samples of compliance and exemption reporting under SEC Rule 17a-5

New for 2026

The 2026 edition includes updated discussion of several topics, including:

• Digital assets
• Income tax disclosures, including interpretative guidance approved by FinREC, on the application of FASB ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures
• Accounting for arrangements involving payments by a clearing broker to an introducing broker
• Artificial intelligence, including the increasing usage of AI tools by broker-dealers and related control considerations
• Margin requirements under applicable regulations
• Recently issued SEC rules related to the application of federal securities laws to certain crypto assets transactions; reserve computations under the Customer Protection Rule; and the expansion of permissible collateral for broker-dealer stock borrowing under Rule 15c3-3, among other topics
• Recent SEC staff views and frequently asked questions on subjects such as treasury clearing, reserve computation requirements, and crypto asset activities
• Other recent SEC releases and FINRA rule amendments
• Recently published summary of relevant SEC requirements when a material weakness is determined to exist in a carrying broker-dealer’s internal controls over compliance under SEC Rule 17a-5, developed by the AICPA Stockbrokerage and Investment Banking Expert Panel

Other updates to this edition conform to current accounting standards and regulatory requirements.

Key Topics

• Background on the securities industry and the functions performed by broker-dealers
• Industry-specific interpretive guidance on accounting and financial reporting under U.S. GAAP and regulatory compliance
• Regulatory updates from key industry regulators (SEC, FINRA, and CFTC)
• Broker-dealer risks and controls
• Sample compliance report and exemption reports required by SEC Rule 17a-5
• Comprehensive examples of financial statements, disclosures, and supplementary schedules