DOCM Idea: The Thought of Financial Statements

Firestone Discussion
1

Financial Statements for Firestone Businesses

This idea would be for the Department of Commerce to implement, which would be under the Firestone Securities and Exchange Commission (SEC). Since there is the possibility of removal of the SEC, this idea would obviously be only for V3. I don’t know the possibility of this in V2.

I. INTRODUCTION

After speaking with the Secretary of Commerce, I’ve thought of just making this forum post since it sounds like a cool idea and brings in more realism. I understand most people here don’t have much financial knowledge or an idea of what financial statements are, or there purpose. This post will go into the detail of what the heck this is about.

II. FINANCIAL STATEMENTS

In the real world, there is something called the “10K” which is basically just a massive report about a publicly listed company. Included in this 10K are financial statements. Some examples of financial statements in the 10K are your Income Statements, Balance Sheets, and Statement of Cash Flow. These forms are usually verified by Certified Public Accountants and have to abide by rules and regulations from the United States Securities and Exchange Commission.

This idea will only pick out the Income Statement which would be very basic since no one here is an accountant and is not adequately educated on the workings of public accounting.

III. IMPLEMENTATION

In V3, for Firestone Businesses that choose to be listed as a publicly traded company, they would be required to submit an income statement along with their monthly permit renewal which would be reviewed by the Firestone Securities and Exchange Commission.

Included in this certain Income Statement would be your revenue (the amount of money you’ve made for a duration of a month), expenses (if you pay your employees or any other liability), and then your net profit (revenues minus expenses). The purpose of this would be to gauge how much a company makes, how much it’s worth, and gives the investor an idea of whether or not they should support that company financially.

If you’re confused on how to actually set this up, that’s totally fine. The FS SEC would be able to make basic formats for these businesses to follow and just simply input information. These publicly listed companies would be required to hire a Chief Financial Officer who would be in charge of actually preparing these documents along with the company owner. To be a little creative, those companies would be able to put down any notes that they’ve discussed with their executive leadership on what they’d like the SEC to know, etc.

The SEC would then be able to go through the statements to see if the information seems credible. If there is any suspicion, the SEC could send Auditors (or in this case, members of the DOC Inspections Officer) to conduct audits on a company’s financial statements to check where they got those numbers from, etc. In Firestone, obviously there would be mistakes in the numbers, but you could definitely be lenient on that. You would be able to track your revenue to see how much goods your company has sold to customers and your expenses through how much you’ve paid your employees.

For those asking, what would even motivate companies to do this, or, this is just going too far, obviously we wouldn’t be going crazy about this. This would be a cool and realistic thing we could implement for businesses and would give the SEC a major thing to do and work on and would also be able to give a boost for the Department of Commerce. As aforementioned, the SEC would already be giving out templates to these businesses and they just record the numbers. It would be fun for these businesses, because they could visually see how they are doing, make goals for themselves, have a cool learning experience, and just see what they do wrong/right.

IV. CONCLUDING REMARKS

This is just a basic idea, but it’d be super interesting and cool to prepare and implement for the future. Obviously, this would be worked on by the entirety of the DOCM Leadership Team and future members of the SEC when V3 comes around. Please comment on what you think. It would be super cool to hear the public’s thoughts on this.

V. POLL

Would you want to see this idea implemented?
  • Yes
  • No
  • Neutral

0 voters

1 Like
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no1 likes docm sorry

3 Likes
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hater

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hater, strong baller

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as an authorized representative of many businesses this sounds cool

3 Likes
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This sounds cool, but let’s be honest, there are like no public companies right now and that’s unlikely to change

3 Likes
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this is literally a great idea that i came up with over a year ago in which you just gutted from mine

some credit would be appreciated.

i literally do not understand this state sometimes i write a piece of legislation incredibly similar to this called the public shareholder’s act, most support it but opposers would scream louder than the supporters and congress attempted to nullify it for months. now here we are a month later with the idea being repurposed, as much as I like it it’s incredibly frustrating. I’ve constantly spearheaded ideas or created ideas in this state or had certain policies that were criticized at the time but later on it is generally liked, I’ve literally dealt with a confederacy of haters. the amount of times I’ve predicted the future of this state is uncanny and how many times my “foolish” ideas are hated on in the past but later become loved in the present.

7 Likes
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While this may seem like a great idea and there are definitely people in Firestone who knows how the financial sides of businesses work (myself included), you have to remember this is a lego game meant for children and you see it yourself when processing applications the level of incompetency from some people that try to start businesses or even during renewals so it’s not going to work out in the long run

9

This is more an expansion of the Public Shareholders Act. The Act did not include provisions for businesses to submit their actual revenue and expenses (“income statements”), but it did establish the SEC and the notion of public companies, which this idea aims to utilize further in another way.

The difficulty I see with this idea is: how do you track the business’ income, exactly? It may be easy for businesses that mainly utilize contracts, but I imagine it would be near impossible for e.g. Iconic without major development support.

4 Likes
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Though this may add an element of realism, I doubt whether most components of a Profit and Loss Account/Income Statement (liabilities, cost of production, and operational expenses) would even be applicable to Firestone businesses.

The P&L Accounts would end up looking like this every month:

image
image636×612 31.5 KB

It’s a great idea, however, most of these financial documents would not have any actual relevance or application.

4 Likes
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also can we hurry up and have some actual public companies already

or some actual members of the sec

cough commerce

2 Likes
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requires commerce to not have a retarded secretary rushed in by our esteemed colleagues in the senate, one of whom received a backrub for his duties (saucy)

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can you at least give him a chance, jesus

anyway I think its a good idea, allows for more expansion of commerce and businesses

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cope :slight_smile:

and for the record, we’re looking into this idea

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My intention had never to steal any idea from you. I’ve spoken with former Secretary Ryan about this as well and he seemed to like it. If you did include this in your original legislation, I apologize then and I properly give credit to you, but when I was discussing this and crafting this, I was never aware of you bringing this up.

2 Likes
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Yeah, that’s why I think this should probably be pushed to V3 when there is more opportunity.

1 Like
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i am one of the few people in firestone with extensive financial knowledge about accounting and economics and various other finances

4 Likes
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this is why ash should be running our extensive treasury of gold, the blood of atollians, and other exotic items

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i still own like 50% of scrib animal and food co when they sold shares i plan to hostile takeover soon

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#i’dhavetohireanaccountantwhichisliterallyjustmorebusinesssomaybeiwouldtobenefittheeconomybutlikeidkitwouldbecoolbutkindauseless/shrug

2 Likes