Sec. 32.1402  Investments in nonaffiliated companies.

    (a) This account shall include the acquisition cost of the Company's 
investment in securities issued or assumed by nonaffiliated companies 
and individuals, other than securities held in special funds which shall 
be charged to Account 1408, Sinking Funds, and also its investment 
advances to such parties and special deposits of cash for more than one 
year from date of deposit.
    (b) Declines in value of investments shall be charged to Account 
4540, Other Capital, if temporary and as a current period loss if 
permanent. Detail records shall be maintained to reflect unrealized 
losses for each investment.
    (c) This account shall also include advances represented by book 
accounts only with respect to which it is agreed or intended that they 
shall be either settled by issuance of capital stock or debt; or shall 
not be subject to current cost settlement.
    (d) A subsidiary record shall be kept identifying separately common 
stocks, preferred stocks, long-term debt, investment advances and 
special deposits of cash for more than one year from the date of 
deposit. Further, the company's record shall identify the securities 
pledged as collateral for any of the company's long-term debt or short-
term loans or to secure performance of contracts.
    (e) Amounts due from nonaffiliated companies which are subject to 
current settlement shall be included in Account 1180, Telecommunications 
Accounts Receivable, Account 1190, Other Accounts Receivable, or Account 
1200, Notes Receivable, as appropriate.