UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 20, 2000
THE BEARD COMPANY
(Exact Name of registrant as Specified in its Charter)
Oklahoma 0-12396 73-0970298
(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
incorporation or Number)
organization)
Enterprise Plaza
5600 N. May Avenue
Suite 320
Oklahoma City, Oklahoma 73112
(Address of principal executive offices) (Zip Code)
N/A
(Former name or former address, if changed since last report)
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ITEM 4. Changes in Registrant's Certifying Accountant.
(a) On July 20, 2000, the audit committee of the board of
directors of The Beard Company approved a decision to change the
Company's independent accounting firm from KPMG LLP to Cole &
Reed, P.C. Pursuant to that approval, the Company dismissed KPMG
and engaged Cole & Reed as the Company's principal accountant to
audit the Company's financial statements.
KPMG's accountants' report on the financial statements for
the past two years did not contain an adverse opinion or
disclaimer of opinion, and was not qualified or modified as to
uncertainty, audit scope or accounting principles.
During the Company's two most recent fiscal years and any
subsequent interim period preceding the dismissal, there were no
disagreements with KPMG on any matter of accounting principles or
practices, financial statement disclosure, or auditing scope or
procedure, which disagreements, if not resolved to the
satisfaction of KPMG would have caused it to make reference to
the subject matter of the disagreements in connection with its
report.
During the Company's two most recent fiscal years and any
subsequent interim period preceding KPMG's dismissal:
1. The accountants did not advise the Company that the
internal controls necessary for the Company to develop reliable
financial statements do not exist;
2. The accountants did not advise the Company that
information had come to the accountants' attention that led them
to no longer be able to rely on management's representations or
that made them unwilling to be associated with the financial
statements prepared by management;
3. The accountants did not advise the Company of the need
to expand significantly the scope of their audit, or advise that
information had come to the accountants' attention that if
further investigated may (i) materially impact the fairness or
reliability of either: a previously issued audit report for the
underlying financial statements, or the financial statements
issued or to be issued covering the fiscal period(s) subsequent
to the date of the most recent financial statements covered by an
audit report (including information that may prevent them from
rendering an unqualified audit report on those financial
statements); or (ii) cause them to be unwilling to rely on
management's representations or to be associated with the
Company's financial statements;
4. The accountants did not advise the Company that
information had come to the accountants' attention that they had
concluded materially impacts the fairness or reliability of
either (i) a previously issued audit report for the underlying
financial statements; or (ii) the financial statements issued or
to be issued covering the fiscal period(s) subsequent to the date
of the most recent financial statements covered by an audit
report (including information that, unless resolved to the
accountants' satisfaction, would prevent them from rendering an
unqualified audit report on those financial statements).
The Company has provided KPMG with a copy of this Form 8-K
and requested the former accountant to furnish the Company with a
letter addressed to the Securities and Exchange Commission
stating whether it agrees with the statements made by the Company
in respect to the statements made herein, and, if not, stating
the respects in which it does not agree. Included as Exhibit 16
to this Form 8-K is a letter from KPMG concerning the foregoing.
(b) Also pursuant to the approval of the audit committee, the
Company engaged Cole & Reed. During the Company's two most recent
fiscal years, and any subsequent interim period prior to engaging
the accountant, the Company (or anyone on its behalf) did not
consult with Cole & Reed regarding (i) the application of
accounting principles to a specified transaction, either
completed or proposed; or the type of audit opinion that might be
rendered on the Company's financial statements; or (ii) any
matter that was the subject of a disagreement with the former
accountants or was a reportable event.
ITEM 7. Financial Statements and Exhibits
(a) Financial statements of the business acquired
Not applicable.
(b) Pro Forma financial information
Not applicable.
(c) Exhibits
The following exhibits are filed herewith:
Exhibit Description
No.
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16 Letter from KPMG LLP
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SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
THE BEARD COMPANY
Date: July 27, 2000 HERB MEE, JR.
Herb Mee, Jr., President
