(c) General levies or assessments against stockholders shall be credited to the discount and premium account for the particular class and series of capital stock so assessed. (d) Discounts, premiums, and assessments on capital stock shall be retained in the discount and premium account until the reacquirement of the securities to which they relate, or until otherwise disposed of lawfully. (e) When capital stock which has been actually issued or assumed by the company is reacquired, the proportion (based upon the relation of the amount of stock reacquired to the total amount of that particular class or series of stock outstanding before its reacquirement) of the balance in the discount and premium account with respect to the stock reacquired shall be cleared to Account 402, "Miscellaneous credits to surplus," or Account 413, "Miscellaneous debits to surplus," as may be appropriate. (f) No discount or premium on capital stock shall be included in any account as a part of the cost of acquiring any property or as a part of the cost of operation.*† 31.1-15 Discount, premium, and expense on long-term debt. (a) A separate discount, premium, and debt expense account shall be maintained to include both discounts suffered and premiums realized, together with expenses incurred, in connection with the sale or resale of each class and series of long-term debt (including receivers' certificates) issued or assumed by the company. (Note also §§ 31.01-3 (1), (n), (z), 31.1–13 (b).) (b) In stating the balance-sheet, the total of the debit balances remaining in these accounts having debit balances shall be reported under Account 135, "Discount on long-term debt," and the total of credit balances remaining in these accounts having credit balances shall be reported under Account 168. "Premium on long-term debt." Accounts with debit balances shall not be offset by accounts with credit balances. (c) The company may extinguish at any time through charges to Account 413, "Miscellaneous debits to surplus," all or any part of the debit balance remaining in any particular discount, premium, and debt expense account. (d) Each month there shall be credited to each particular discount, premium, and debt expense account in which there is a debit balance the proportion (based upon the ratio of the month to the life of the security remaining at the beginning of the month) of such debit balance as is applicable to the month. The amounts thus credited shall be concurrently charged to Account 338, "Amortization of discount on long-term debt." (Note also § 31.2-22 (b) (10) (ii).) (e) Correspondingly each month there shall be charged to each particular discount, premium, and debt expense account in which there is a credit balance the proportion of such credit balance as is applicable to the month. The amounts thus charged shall be concurrently credited to Account 339, "Release of premium on long-term debt-Cr." (Note also § 31.2-22 (b) (10) (ii).) (f) Except as provided in paragraphs (c), (d), and (e) of this section, the balance in each of these accounts shall be carried until Page 278 *For statutory and source citations, see note to § 31.01-1. the reacquirement of the securities to which it relates, at which time the proportion (based upon the relation of the amount of long-term debt reacquired to the total amount of that particular class or series of long-term debt outstanding before its reacquirement) of the balance in the discount, premium, and debt expense account with respect to the long-term debt reacquired shall be cleared to Account 402, "Miscellaneous credits to surplus," or Account 413, "Miscellaneous debits to surplus," as may be appropriate. (Note also § 31.1-13 (b).) (g) No discount, premium, or expense on long-term debt shall be included in any account as a part of the cost of acquiring any property or as a part of the cost of operation except under the provisions of § 31.2-22 (b) (10) (ii).*† 31.1-16 Exchange of securities. Before recording journal entries which it is proposed to spread upon the company's books to record the reacquirement of capital stock or other securities issued or assumed by the company under a plan for the issuance in exchange therefor of the company's securities, a statement indicating the plan of accounting proposed by the company shall be presented to this Commission for consideration and approval. Such statement shall give complete information concerning the plan of exchange; the authority of the regulatory body with respect thereto, if any; and the basis upon which the amounts have been determined.*t 31.1-16:1 Nonpar capital stock. Before recording journal entries which it is proposed to spread upon the company's books to record the issuance or assumption by the company of nonpar capital stock or appropriations of surplus for transfer to nonpar capital stock account, the plan of accounting shall be presented to this Commission for consideration and approval. Such statement shall give complete information with respect to the basis upon which the amounts to be recorded have been determined.*+ 31.1-17 Contingent assets and liabilities. Contingent assets represent a possible source of value to the company contingent upon the fulfillment of conditions regarded as uncertain. Contingent liabilities include items which may under certain conditions become obligations of the company but which are neither direct nor assumed liabilities at the date of the balance-sheet. In the annual report to this Commission contingent assets and contingent liabilities shall not be included in the balance-sheet but contingent assets and liabilities shall be shown in detail in a supplementary statement accompanying it."t BALANCE-SHEET ACCOUNTS INVESTMENTS 31.100:1 Telephone plant in service. This account shall include the original cost (note § 31.01-3 (x)) of the company's property used in telephone service at the date of the balance-sheet as classified under Accounts 201 to 277, inclusive. (Note also §§ 31.01–3 (gg), 31.2-20, 31.2-21.)*†† In 88 31.100:1 to 31.181, inclusive, the numbers to the right of the decimal point (except that a colon has been substituted in each instance where a decimal **For statutory and source citations, see note to § 31.01-1. Page 279 point was used in the original account numbers) correspond with the respective account numbers in Uniform system of accounts for (Class A and Class B) telephone companies, Federal Communications Commission, effective Jan. 1, 1937 (Orders 7-C, 7-D). Cross references to accounts are made by citing the account numbers, e. g., Account 100:1 instead of the corresponding section number (§ 31.100:1). 31.100: 2 Telephone plant under construction. (a) This account shall include the original cost (note § 31.01-3 (x) of construction of telephone plant not completed ready for service at the date of the balance-sheet. It shall include interest during construction, taxes during construction, and all other elements of cost of such construction work. (Note also §§ 31.2-20 to 31.2-22.) (b) When any telephone plant the cost of which has been included in this account is completed ready for service, the cost thereof shall be credited to this account and charged to the appropriate telephone plant or other accounts.** NOTE: It is not required that this account shall include the cost of construction work which will be completed ready for service within a short period, such as the installation of station apparatus, replacement of poles, and other work completed within a period of 1 or 2 months. 31.100: 3 Property held for future telephone use. (a) This account shall include the original cost (note § 31.01-3 (x)) of property owned and held for imminent use in telephone service under a definite plan for such use. (b) The property included in this account shall be classified according to the primary accounts for telephone plant in service. Separate subaccounts shall be provided for this purpose which accounts shall carry the same numbers as the plant accounts except that each account number shall be prefixed by (1). (Note also §§ 31.2-20, 31.2-21.)*+ 31.100: 4 Telephone plant acquisition adjustment. (a) This account shall include amounts determined in accordance with § 31.2-21 representing the difference between (1) the amount of money actually paid (or the current money value of any consideration other than money exchanged) for telephone plant acquired, plus preliminary expenses incurred in connection with the acquisition; and (2) the original cost (note § 31.01-3 (x)) of such plant, governmental franchises and similar rights acquired, less the amounts of reserve requirements for depreciation and amortization of the property acquired. If the actual original cost is not known, the entries in this account shall be based upon an estimate of such cost. (b) This account shall be subdivided according to the character of the amounts contained therein. In addition to a copy of the journal entry recorded to open the account, the company shall file with this Commission statements showing the basis of the computation of amounts included therein. The detailed records supporting these statements shall be retained permanently by the company. (c) The amounts recorded in this account with respect to each property acquisition shall be disposed of, written off, or provision shall be made for the amortization thereof in such manner as this Commission may direct.*† Page 280 *For statutory citation, see note to § 31.01-1. 31.101: 1 Investments in affiliated companies. (a) This account shall include the book cost (note § 31.1-12) of the company's investment in securities issued or assumed by affiliated companies (note § 31.01-3 (d)) other than securities held in special funds (see also Note B to this account) or as temporary cash investments. (b) This account shall be maintained so as to show separately the book cost of: (1) Common stocks. (c) The company's records shall be kept in such manner that in the annual reports to this Commission the securities pledged as collateral security for any of the company's long-term debt or shortterm loans or to secure performance of contracts may be shown separately from securities unpledged.*† NOTE A: The value of securities borrowed by the company shall not be included in this account. NOTE B: The book cost of securities held in special funds shall be included in Accounts 104, 136, or 137, as may be appropriate. NOTE C: Working funds advanced to affiliated companies other than investment advances (note § 31.01-3 (q)) shall be included in Account 115. 31.101: 2 Advances to affiliated companies. This account shall include the amount of the investment advances (note § 31.01-3 (q)) to affiliated companies.*+ NOTE: Amounts receivable from affiliated companies which are subject to current settlement shall be included in Accounts 117:1 or 120:1, as appropriate. 31.102 Other investments. (a) This account shall include the book cost (note § 31.1-12) of the company's investment in securities issued or assumed by nonaffiliated companies (note § 31.01–3 (w)) and individuals, other than securities held in special funds (see also Note C to this account) or as temporary cash investments; also its investment advances (note § 31.01-3 (q)) to such parties and special deposits of cash for more than 1 year from date of deposit. (b) This account shall be maintained so as to show separately the book cost of: (1) Stocks. (2) Long-term debt. (3) Investment advances. (4) Special deposits of cash for more than 1 year from date of deposit. (c) The company's records shall be kept in such manner that in the annual reports to this Commission the securities pledged as collateral security for any of the company's long-term debt or short-term loans or to secure the performance of contracts may be shown separately from the securities unpledged.** NOTE A: Amounts receivable from nonaffiliated companies and individuals which are subject to current settlement shall be included in Accounts 117:2 or 120:2, as appropriate. NOTE B: The value of securities borrowed by the company shall not be inIcluded in this account. NOTE C: The book cost of securities held in special funds shall be included in Accounts 104, 136, or 137, as may be appropriate. *For statutory citation, see note to § 31.01-1. For source citation, see note to § 31.100: 1. 102578-39-TITLE 47-19 Page 281 NOTE D: Working funds advanced to nonaffiliated companies and individuals other than investment advances (note § 31.01-3, (q)) shall be included in Account 115. 31.103 Miscellaneous physical property. This account shall include the company's investment in physical property other than property the investment in which is includible in Accounts 100:1, "Telephone plant in service," 100: 2, "Telephone plant under construction," 100: 3, "Property held for future telephone use," and 100: 4, "Telephone plant acquisition adjustment." It shall include the company's investment in telephone property retired (note § 31.01-3 (y)) and held for sale; also property such as lighting, water, power, and manufacturing plants, not held incident to the company's telephone operations, and assessments against miscellaneous physical property for the construction of public improvements.** 31.104 Sinking funds. (a) This account shall include the amount of cash, the book cost of securities issued by other companies, and the book or face amount (note § 31.01-3 (e), (o)) of nominally issued and nominally outstanding (note § 31.01-3 (u), (v)) securities issued or assumed by the company, and other assets which are held by trustees or by the company's treasurer in a distinct fund, for the purpose of redeeming outstanding obligations. (Note also §§ 31.1-12, 31.1-13, 31.3-31.) (b) A separate account shall be kept for each sinking fund under a title which shall designate the obligation in support of which the fund was created.*† 31.105 Company securities owned. (a) This account shall include the book or face amount (note § 31.01-3 (e), (o)) of nominally issued and nominally outstanding (note § 31.01-3 (u), (v)) securities issued or assumed by the company, other than such securities held in sinking or other special funds. (Note also § 31.1–13.) (b) This account shall be maintained so as to show: (1) For stock: (i) Par stock: (a) Number of shares and total book amount of shares unpledged. (b) Number of shares and total book amount of shares pledged. (ii) Nonpar stock: (Note § 31.1-16:1.) (a) Number of shares and book amount assigned to shares unpledged. (b) Number of shares and book amount assigned to shares pledged. (2) For long-term debt: (i) Total face amount unpledged. (ii) Total face amount pledged.** CURRENT ASSETS 31.113 Cash. This account shall include the amount of current funds available for use on demand in the hands of financial officers and agents, or deposited in banks or with trust companies, also funds in transit for which agents have received credit. (Note also § 31.1-11.)*+ NOTE: Working funds shall be included in Account 115. Page 282 *For statutory citation, see note to § 31.01-1. |