A specialty course that concentrates on proper accounting procedures as they pertain to a basis trading operation, with special emphasis on Mark-to-Market valuations of cash grain and futures contracts. Designed to give students a greater depth of knowledge in the way basis trading activities flow through the financial statement – from both the merchandising perspective and the accounting perspective – so that the methods of accounting that are most appropriate and suitable for the business can be decided and implemented.
- Define and put in place a monthly routine that produces accurate and timely financial statements.
- Understand the different ways mark-to-market valuations on cash grain positions can be made and the effect each has on the financial statement.
- Make and record accurate valuations of Inventory, Purchase & Sales Contracts and Open Futures Positions in compliance with GAAP.
- Understand the impact changes in basis, spreads and price have on the Income Statement.
- Know what to look for when the numbers don't make sense.
With the purpose of using the financial statements to effectively report, manage and strengthen the financial health of the business –
- Present the company's financials clearly and confidently to the lender, board member and other interested parties.
- Know what the lender looks for on your financial statements.
- Understand key financial ratios, what they tell about your business and what it will take to improve your numbers.
Build common ground and understanding between the merchandiser, controller, bookkeeper, auditor, accountant and lender about how basis trading activity is reflected in the company's financial records.