shall be credited all amounts recovered from insurance companies for damage to the property reinsured by them. 456 Employees Health and Welfare Benefits. This account shall include premiums on group and other insurance policies covering annuities and other benefits for employees or their beneficiaries, contributions directly to employees health and welfare funds, and salaries and other expenses incurred directly in conducting relief, benefit, and medical departments for the benefit of officers and employees engaged in accounting, law, and other general administration. NOTE: The total amount payable to trustees under pension plans and directly to retired employees for pensions is includible in account 457, "Pensions." 457 Pensions. (a) This account shall include amounts payable for the current year to trustees under pension plans for pension costs computed on basis of employees services in the year and for pension costs computed on basis of credits for past services. This includes retired employees and former employees covered in such plans, as well as employees now in service. The account shall also include the amount for which the carrier is liable to cover cost of pensions vested in employees who have qualified for pensions in advance of payment to trustees. This account shall include amounts payable for each year directly to retired employees or to their beneficiaries when no trust fund exists. Also, in the case of an unfunded pension plan, when an employee retires and is granted a pension the total present worth of the pension actuarially computed may be charged to this account, provided this method of accounting for such expense is consistently followed. (b) If the amount payable to the trustees for pensions for the current year is not paid before the accounts are closed, the item (estimated if necessary) shall be charged to this account and concurrently credited to account 759, "Accrued accounts payable"; or account 753, "Audited accounts and wages payable", in case the amount is covered by audited voucher. (c) The amounts to be charged to this account each year for costs of pensions, including credits based upon prior serv ices, shall be in agreement, as nearly as practicable, with deductions includible in the Federal income tax return for the year under pension plan adopted by the carrier for making payments to the trustees. When payments attributable to prior services made to trustees at the time the pension plan is adopted or subsequently are materially in excess of deductions includible in the tax return for the year, such excess shall be inIcluded in account 743, "Other deferred charges", and cleared thereafter to account 457 in the years in which deductions are includible in tax returns. (See Note B). (d) Carriers shall maintain a complete record of payments to trustees for pensions and shall be prepared to furnish to the Commission full information of the plan under which it has created a pension fund and a copy of the declaration of trust and resolution under which the pension plan is established. NOTE A: Premiums on group and other insurance policies and also other costs of employees health and welfare benefits (but not including pensions) are includible in the separate primary accounts under the general accounts for maintenance, traffic, transportation, miscellaneous operations, and general expenses, as may be appropriate, according to distribution of the pay of the employees covered by the contracts. (See instruction 1-9.) NOTE B: Reserves heretofore authorized and recorded in the accounts as of the effective date of this system of accounts for pension costs, not funded, may be retained unless otherwise directed by the Commission. Also, payments heretofore made to trustees and charged off against income or retained income are not to be reversed, unless otherwise directed or authorized by the Commission. NOTE C: In the case of an existing pension plan, if the carrier should desire to conform its accounting to the full accrual basis of accounting, application to do so may be made to the Commission for consideration and such accounting shall not be performed unless approved by the Commission. Full accrual basis as used herein means recording in the accounts now and hereafter costs of employees pensions accrued, including credits for past services, upon the basis of actuarial computations, even though the sum has not been funded by payment to the trustees. Applications for such accounting shall show the method of computation, together with the carrier's proposal for record. ing in the accounts the related income tax credits to be realized in subsequent years. 458 Stationery and Printing. This account shall include the cost of postage and of stationery and printing used in general offices and not chargeable to other accounts, including the cost of printing annual reports, contracts, leases, stock certificates, and passes. This account also shall include the cost of adding and calculating machines, typewriters and other office appliances which replace comparable items worn out, consumed or for other cause are no longer in use. NOTE A: The cost of printing briefs, legal forms, testimony, reports, etc., for the law department is chargeable to account 454, "Law expenses." NOTE B: The cost of printing bonds, etc., in connection with the carrier's funded debt shall be included in balance-sheet account 742, "Unamortized discount on long-term debt." 460 Other Expenses. This account shall include incidental general expenses which are not properly chargeable to any of the foregoing accounts. ITEMS OF EXPENSE Cost of draping buildings. Cost of publishing notices of stockholders' Exchange (other than foreign exchange) on checks cashed or deposited and on drafts bought. Fees and expenses paid to directors and trustees. Loss through payment of wages to a wrong person. Penalties assessed for nonpayment of claims for overcharges. 461 General Joint Facilities-Dr. This account shall include the carrier's proportions of general expenses incurred by others incident to maintaining and operating tracks, yards, terminals, and other facilities used jointly. NOTE: The purpose of this account is to show the amount accruing against the carrier for its proportion of the expense of general administration of tracks, yards, terminals and other facilities administered by others, and in the joint use of which the carrier participates. 462 General Joint Facilities-Cr. This account shall include amounts chargeable to others as their proportions of general expenses incurred by the carrier incident to maintaining and operating tracks, yards, terminals, and other facilities used jointly. NOTE: The purpose of this account is to show the amounts accruing in favor of the carrier and against others for their proportions of the expense of general administration of tracks, yards, terminals, and other facilities administered by the carrier, and in the joint use of which others participate. Condensed Classification of Operating Expenses 480 Accounts for Small Carriers, Class II. See Instruction 1, Classification of Carriers. The condensed groupings of accounts for Class II small carriers are as follows: CONDENSED CLASSIFICATION OF OPERATING EXPENSES-continued Accounts for Large Carriers-Class I 227. Station and office buildings. 229. Roadway buildings. 231. Water stations. 233. Fuel stations. 235. Shops and enginehouses. 237. Grain elevators. 239. Storage warehouses. 241. Wharves and docks. 243. Coal and ore wharves. 253. Power plants. 257. Power-transmission systems. 265. Miscellaneous structures. 267. Retirements-Road. 270. Dismantling retired road property. 271. Small tools and supplies. 273. Public improvements-Maintenance. 274. Injuries to persons. CONDENSED CLASSIFICATION OF OPERATING EXPENSES-continued Accounts for Small Carriers-Class II 2256. Operating joint tracks and facilities-Dr. 2257. Operating joint tracks and facilities-Cr. Miscellaneous Operations... Accounts for Large Carriers-Class I 412. Operating joint tracks and facilities-Dr. 413. Operating joint tracks and facilities-Cr. 440. Miscellaneous Operations. 441. Dining and buffet service. 443. Grain elevators. 445. Producing power sold. 446. Other miscellaneous operations. 449. Employees health and welfare benefits. 447. Operating joint miscellaneous facilitiesDr. 448. Operating joint miscellaneous facilitiesCr. 450. General. 451. Salaries and expenses of general officers. 452. Salaries and expenses of clerks and at tendants. 453. General office supplies and expenses. 455. Insurance. 456. Employees health and welfare benefits. 458. Stationery and printing. 460. Other expenses. 461. General joint facilities--Dr. 91 (b) amounts payable accrued for the use of the freight cars of others, leased or interchanged. NOTE A: If the net balance is a debit, it shall be included in account 536, "Hire of freight cars-Debit balance." NOTE B: Rent for freight cars included in the lease of road to another company shall be included in account 509, "Income from lease of road and equipment." NOTE C: Rents paid for freight cars used in construction work-train service are chargeable to the cost of the work. 504 Rent from Locomotives. This account shall include, except as provided in the text of account 509, "Income from lease of road and equipment," amounts receivable accrued as rent for the use of the accounting company's locomotives leased or interchanged. NOTE: Rent for locomotives included in lease of road to another company shall be included in account 509, "Income from lease of road and equipment." |