Goto Section: 32.7300 | 32.7500 | Table of Contents

FCC 32.7400
Revised as of October 1, 2005
Goto Year:2004 | 2006
Sec.  32.7400   Nonoperating taxes.

   This account shall include taxes arising from activities which are not a
   part of the central operations of the entity.

   (a) This account shall be charged and Account 4330, Unamortized nonoperating
   investment tax credits—net, shall be credited with investment tax credits
   generated from qualified expenditures related to other operations which the
   company has elected to defer rather than recognize currently in income.

   (b) This account shall be credited and Account 4330 shall be charged with
   the amortization of each year's investment tax credits included in such
   accounts relating to amortization of previously deferred investment tax
   credits of other property or regulated property, the amortization of which
   does not serve to reduce costs of service (but the unamortized balance does
   reduce rate base) for ratemaking purposes. Such amortization shall be
   determined with reference to the period of time used for computing book
   depreciation on the property with respect to which the tax credits relate.

   (c) This account shall be charged and Account 4070, Income taxes—accrued,
   shall be credited for the amount of nonoperating Federal income taxes and
   state and local income taxes for the current period. This account shall also
   reflect subsequent adjustments to amounts previously charged.

   (d) Taxes shall be accrued each month on an estimated basis and adjustments
   made as more current data becomes available.

   (e) Companies that adopt the flow-through method of accounting for
   investment tax credits shall reduce the calculated provision in this account
   by the entire amount of the credit realized during the year. Tax credits,
   other than investment tax credits, if normalized, shall be recorded
   consistent with the accounting for investment tax credits.

   (f) No entries shall be made to this account to reflect interperiod tax
   allocation.

   (g) Taxes (both Federal and state) shall be accrued each month on an
   estimated basis and adjustments made as later data becomes available.

   (h) This account shall be charged and Account 4080, Other taxes—accrued,
   shall be credited for all nonoperating taxes, other than Federal, state and
   local income taxes, and payroll related taxes for the current period. Among
   the items includable in this account are property, gross receipts, franchise
   and capital stock taxes. This account shall also reflect subsequent
   adjustments to amounts previously charged.

   (i) This account shall be charged or credited, as appropriate, with contra
   entries recorded to the following accounts for nonoperating tax expenses
   that has been deferred in accordance with  Sec. 32.22: 4110 Net Current Deferred
   Nonoperating Income Taxes, 4350 Net Noncurrent Deferred Nonoperating Income
   Taxes.

   (j) Subsidiary record categories shall be maintained to distinguish between
   property and nonproperty related deferrals and so that the company may
   separately report the amounts contained herein that relate to Federal, state
   and local income taxes. Such subsidiary record categories shall be reported
   as required by part 43 of this chapter.

   [ 67 FR 5699 , Feb. 6, 2002]


Goto Section: 32.7300 | 32.7500

Goto Year: 2004 | 2006
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