SEC Comment Letter for BEARD — Dec 27, 2005
BEARD CO /OK (CIK 0000909992)
Date: Dec. 27, 2005 · CIK: 0000909992 · Accession: 0000000000-05-063879
AI Filing Summary & Sentiment
Letter
Mail Stop 7010 December 19, 2005 Mr. Herb Mee, Jr., President and Chief Financial Officer The Beard Company Enterprise Plaza, Suite 320 5600 North May Avenue Oklahoma City, Oklahoma 73112
Re: The Beard Company Form 10-K for Fiscal Year Ended December 31, 2004 File No. 1-12396
Dear Mr. Mee:
Thank you for the detailed analysis and additional information provided in response to our conference call of October 4, 2005. Please understand that the purpose of our review process is to assist you in your compliance with the applicable disclosure requirements and to enhance the overall disclosure in your filing. After reviewing your response and related supporting documentation we believe that the equity method of accounting is appropriate for your investment in Cibola. However, we believe that the following revisions are required.
1. Please amend your Form 10-K for the year ended December 31, and Forms 10-Q for the three quarters in 2005 to reflect your share of the earnings of Cibola under the equity method on a gross basis. Your restated income statement should conform to the presentation you provided on Schedule 7-Version 1-Full "other than temporary" impairment. This presentation would provide "other than temporary" impairment of your investment to the extent your share of Cibola earnings exceed the actual cash distribution you earned and received during for the period.
2. Also your balance sheets in the above filings should be amended to reflect your investment in and the related note payable to Cibola on a gross basis versus your current net method of disclosure.
3. Amend the above filings to expand your footnote disclosures to include certain items provided in your EITF 96-16 analysis such as Cibola`s corporate governance arrangements and the comparable economic interests and investment at risk, which support your accounting for this investment on the equity method of accounting versus the consolidation of Cibola.
4. Please include the financial statements of Cibola as required under Rule 3-09. Also note that Rule 3-09 (b) requires only the financial statements of Cibola be audited.
Please amend your filings and respond to these comments within 10 business days or tell us when you will provide us with a response. You may wish to provide us with marked copies of the amendment to expedite our review. Please furnish a cover letter with your amendment that keys your responses to our comments. Detailed cover letters greatly facilitate our review. Please understand that we may have additional comments after reviewing your amendment and responses to our comments.
You may contact Bret Johnson at (202) 551-3753 or me at (202) 551-3768 if you have questions regarding our comments.
Sincerely,
John Cash
Accounting Branch Chief
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<TEXT>
Mail Stop 7010
December 19, 2005
Mr. Herb Mee, Jr., President and Chief Financial Officer
The Beard Company
Enterprise Plaza, Suite 320
5600 North May Avenue
Oklahoma City, Oklahoma 73112
Re: The Beard Company
Form 10-K for Fiscal Year Ended December 31, 2004
File No. 1-12396
Dear Mr. Mee:
Thank you for the detailed analysis and additional
information
provided in response to our conference call of October 4, 2005.
Please understand that the purpose of our review process is to
assist
you in your compliance with the applicable disclosure requirements
and to enhance the overall disclosure in your filing. After
reviewing your response and related supporting documentation we
believe that the equity method of accounting is appropriate for
your
investment in Cibola. However, we believe that the following
revisions are required.
1. Please amend your Form 10-K for the year ended December 31,
2004
and Forms 10-Q for the three quarters in 2005 to reflect your
share
of the earnings of Cibola under the equity method on a gross
basis.
Your restated income statement should conform to the presentation
you
provided on Schedule 7-Version 1-Full "other than temporary"
impairment. This presentation would provide "other than
temporary"
impairment of your investment to the extent your share of Cibola
earnings exceed the actual cash distribution you earned and
received
during for the period.
2. Also your balance sheets in the above filings should be
amended
to reflect your investment in and the related note payable to
Cibola
on a gross basis versus your current net method of disclosure.
3. Amend the above filings to expand your footnote disclosures
to
include certain items provided in your EITF 96-16 analysis such as
Cibola`s corporate governance arrangements and the comparable
economic interests and investment at risk, which support your
accounting for this investment on the equity method of accounting
versus the consolidation of Cibola.
4. Please include the financial statements of Cibola as required
under Rule 3-09. Also note that Rule 3-09 (b) requires only the
2004
financial statements of Cibola be audited.
Please amend your filings and respond to these comments
within
10 business days or tell us when you will provide us with a
response.
You may wish to provide us with marked copies of the amendment to
expedite our review. Please furnish a cover letter with your
amendment that keys your responses to our comments. Detailed
cover
letters greatly facilitate our review. Please understand that we
may
have additional comments after reviewing your amendment and
responses
to our comments.
You may contact Bret Johnson at (202) 551-3753 or me at (202)
551-3768 if you have questions regarding our comments.
Sincerely,
John Cash
Accounting Branch Chief
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Herb Mee, Jr.
The Beard Company
December 19, 2005
Page 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549-7010
DIVISION OF
CORPORATION FINANCE
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