Bill: Vote Accounting Reform Act

[Anthony_Org]

A
BILL
To


Amend the Commercial Standards Act and the Taxation Act​

The people of the Commonwealth of Redmont, through their elected Representatives in the Congress and the force of law ordained to that Congress by the people through the constitution, do hereby enact the following provisions into law:


1 - Short Title and Enactment
(1) This Act may be cited as the 'Accounting Reform Act.'
(2) This Act shall be enacted immediately upon its signage.
(3) This Act has been authored and sponsored by Representative Anthony_Org.
(4) This Act has been co-sponsored by Senator Bezzergeezer.

2 - Reasons
(1) To strengthen the integrity, transparency, and reliability of financial reporting in DemocracyCraft.
(2) To prevent fraud, misrepresentation, and malpractice in financial reporting.
(3) To amend the Commercial Standards Act to require financial reports to be prepared by an accountant.
(4) To amend the Taxation Act to improve clarity and require financial reports to be prepared by an accountant.

3 - Amendments

The Commercial Standards Act shall be amended as follows:

12 - Definitions

(13) Exchange-Traded Fund (ETF):
(a) An Exchange-Traded Fund (ETF) is a type of investment fund that pools money from multiple investors to invest in a variety of assets such as company shares, bonds, or other financial instruments.
(b) An ETF combines the traits of a publicly traded security and a managed investment fund, allowing investors to collectively own portions of the fund while retaining the ability to buy or sell those portions through a registered Stock Exchange.

14- Public Company Reporting
(1) All Public Companies shall be required to file the following financial statements monthly:
(a) Balance Sheet
(b) Income Statement
(c) Statement of Owners Equity
(d) Management Discussion & Analysis (MD&A) – a narrative disclosure by the company’s management addressing:
(i) Any significant changes in the financial condition, business operations, or performance of the company since the prior reporting period.
(ii) A summary of the company’s investment activities and capital resources, including major assets, liabilities, and financing arrangements.
(iii) Information on any regulatory actions, legal proceedings, contractual disputes, or other material events that may affect the company’s financial position or operations.
(iv) The company’s compliance status with applicable corporate, financial reporting, and regulatory requirements.

(2) The statements must be publicly available through the stock exchange the public company is listed on , and the company Discord, if applicable, in an accessible form that can be downloaded.

(3) Public companies must have their audit status disclosed alongside their statements.
(a) The two statuses are Audited and Unaudited
(i) Audited: The company has received a statutory audit in the previous 3 months. The date of the most recent audit, and who conducted the audit must also be disclosed.
(ii) Unaudited: The company has not received a statutory audit in the previous 3 months.

(4) All financial reports must be prepared and submitted by an licensed accountant with their name attached to the document.

15 - ETF Reporting
(1) All Companies operating an ETF shall be required to file the following financial statements monthly:
(a) Balance Sheet
(b) Management Discussion & Analysis (MD&A) - a narrative disclosure by the company's management addressing:
(i) Any significant changes in the financial condition, asset composition, or overall performance of the fund since the prior reporting period.
(ii) A summary of the fund’s investment strategy and asset allocation, including major holdings, acquisitions, or divestments made during the period.
(iii) A general summary of investor equity, including total capital invested and share distribution.
(iv) Information on any regulatory actions, legal proceedings, or material events affecting the fund or its managing institution.
(v) A summary of fund performance metrics, including total return, distributions, and changes in total fund value during the reporting period.
(vi) The fund’s compliance status with applicable financial reporting and regulatory requirements.

(2) The statements must be publicly available through the stock exchange the ETF is listed and the managing companies Discord, if applicable, in an accessible form that can be downloaded.

(3) All financial reports must be prepared and submitted by an licensed accountant with their name attached to the document.

16 - Statutory Audits
(1) A statutory audit shall give a fair and impartial assessment of a Public Company’s financial health, validate their reported statements, and ensure they comply with financial law.
(i) The audit must verify the existence and fair valuation of each item recorded on the balance sheet.
(ii) The audit must confirm the existence and legitimacy of the cash flows reported on each line of the income statement.
(2) Any audit that does not meet the above specification cannot be labelled an audit by a public company or a registered stock exchange.

7 - Financial Records and Reporting of the Taxation Act shall be amended as follows:

(1) Deposit-taking financial institutions must keep detailed accounts of their investment revenue and obligations to their depositors.
(a) Should deposit-taking financial institutions misrepresent their profits to the Department of Commerce, the entity will be liable for prosecution.
(b) Profits shall be calculated as the earnings the financial institution keeps after all operating costs are paid. Profit shall be calculated from the date of the last report or, in the first report, the first day of trading.

(2) Deposit-taking financial institutions are required to report to the Department of Commerce by the end of the first week of the succeeding month:

FINANCIAL REPORT
(a) Profits
(b) Total assets and liabilities as of the last day of the preceding month
(c) Any significant changes in the financial condition or operations of the institution
(d) A summary of the institution's investment portfolio, including details on securities, loans, and other financial instruments held
(e) Information on any regulatory actions, legal proceedings, or other material events that may impact the institution's financial stability
(f) Compliance status with relevant financial regulations and guidelines
(a) Income Statement
(b) Balance Sheet
(c) Management Discussion & Analysis (MD&A) – a narrative disclosure addressing:
(i) Any significant changes in the financial condition or operations of the institution since the prior reporting period.
(ii) A summary of the institution’s investment portfolio, including securities, loans, and other financial instruments held.
(iii) Information on any regulatory actions, legal proceedings, or other material events that may impact the institution’s financial stability.
(iv) The institution’s compliance status with relevant financial regulations and guidelines.

(3) All financial reports must be prepared and submitted by an licensed accountant with their name attached to the document.

(4) Failure to comply with reporting requirements will result in the financial institution surrendering its taxation exemption status until a report is submitted.

 

[Smami]

Aye, while I am unsure of how I entirely feel about the bill, I see no legitimate reasons to shoot it down at this time

 

[Imza]

Votes prior to revote.