California Code of Regulations › Title 4 - Business Regulations › Division 18 - California Gambling Control Commission › Chapter 5 - Accounting and Transaction Approvals › Article 1 - Accounting and Financial Reporting › Section 12313 - Financial Statements and Reporting Requirements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
				  Each licensee must prepare financial statements covering all financial
				  activities of that cardroom business licensee or TPPPS business licensee, as
				  applicable, for each fiscal year, in accordance with generally accepted
				  accounting principles, unless otherwise provided in this section. If a cardroom
				  owner type licensee owns or operates lodging, food, beverage, or any other
				  non-gambling operation at the gambling establishment, the financial statements
				  must reflect the results of the gambling operation separately from those
				  non-gambling operations.
(1) A Group I
				  licensee must engage an independent accountant licensed by the California Board
				  of Accountancy to audit the Group I licensee's annual financial statements in
				  accordance with generally accepted auditing standards.
(2) A Group II licensee must engage an
				  independent accountant licensed by the California Board of Accountancy to, at a
				  minimum, review the Group II licensee's annual financial statements in
				  accordance with standards for accounting and review services or with currently
				  applicable professional accounting standards. The Group II licensee may elect
				  to engage an independent accountant licensed by the California Board of
				  Accountancy to audit the annual financial statements in accordance with
				  generally accepted auditing standards.
(3) A Group III licensee must prepare
				  financial statements including, at a minimum, a statement of financial
				  position, a statement of income or statement of operations, and disclosure in
				  the form of notes to the financial statements. If the Group III licensee is
				  unable to produce the financial statements, it must engage an independent
				  accountant licensed by the California Board of Accountancy to perform a
				  compilation of the Group III licensee's annual financial statements in
				  accordance with standards for accounting and review services or with currently
				  applicable professional accounting standards, including full disclosure in the
				  form of notes to the financial statements. The Group III licensee may elect to
				  engage an independent accountant licensed by the California Board of
				  Accountancy to compile or perform a review of the Group III licensee's annual
				  financial statements in accordance with standards for accounting and review
				  services, or to audit the annual financial statements in accordance with
				  generally accepted auditing standards.
(4)
(A) A
				  Group IV licensee must prepare financial statements that include, at a minimum,
				  a statement of financial position and a statement of income or statement of
				  operations. If the Group IV licensee is unable to produce the financial
				  statements, it must do one of the following:
1. Engage an independent accountant licensed
				  by the California Board of Accountancy to perform a compilation of the Group IV
				  licensee's annual financial statements in accordance with standards for
				  accounting and review services or with currently applicable professional
				  accounting standards. Management may elect not to provide footnote disclosures
				  as would otherwise be required by generally accepted accounting
				  principles.
2. Submit to the
				  Bureau, no later than 120 calendar days following the end of the year covered
				  by the federal income tax return, copies of the Group IV licensee's complete,
				  signed, and duly filed federal income tax return for the tax year in lieu of
				  the financial statements as otherwise required under this
				  section.
(B) The Group IV
				  licensee may elect to engage an independent accountant licensed by the
				  California Board of Accountancy to compile or review the Group IV licensee's
				  financial statements in accordance with standards for accounting and review
				  services, or to audit the financial statements in accordance with generally
				  accepted auditing standards.