CFTC Form 1-FR-IB Instructions - National Futures Association

In this case, $10,000 of the $24,000 in furniture can be
treated as a current asset; none of the $15,000 loan obligation
will be excluded from liabilities in computing net capital. (If
the furniture that was purchased is used in a segment of the
IB's business that involves other than commodity futures or
options, or securities brokerage, such as a bookkeeping service
for others, the IB has available an alternative treatment. In
such case, $10,000, the noncurrent portion of the loan
obligation, could be excluded from liabilities, if the office
furniture was also excluded from current assets. The exclusion
of the liability is made on page 4, line 3.D., of the Statement
of the Computation of the Minimum Capital Requirements.)
Line 11. - Prepaid expenses and deferred charges
Prepaid expenses and deferred charges are to be reported as
noncurrent assets.
Line 12. - Other assets
The IB should report here assets not readily classifiable into
other previously identified categories. The IB must itemize on an
attachment to the report both the current and noncurrent portions of
material amounts included on this line. The itemization should
include a brief description and an amount.
Cash Surrender Value of Life Insurance
The cash surrender value of life insurance may be treated as a
current asset, reported on line 12, if: (a) the IB owns the
policy, and (b) the face amount of the policy is payable to the
IB.
Line 13. - Total assets
For each column show the total of lines 1. through 12. The sum
of the totals for the current and noncurrent asset columns should
equal the sum of the total assets column. Total current assets should
be carried to page 4, line 1, of the Statement of the Computation of
the Minimum Capital Requirements.