Sec. 32.25  Unusual items and contingent liabilities.

    Extraordinary items, prior period adjustments and contingent 
liabilities shall be submitted to this Commission for review before 
being recorded in the company's books of account. The materiality of 
corrections of errors in prior periods shall be measured in relation to 
the summary account level used for reporting purposes for Class A 
carriers, or in relation to total operating revenues or total operating 
expenses for Class B carriers. For Class A carriers, no correction in 
excess of one percent of the aggregate summary account dollars or one 
million dollars, whichever is higher, may be recorded in current 
operating accounts without prior approval. For Class B carriers, no 
correction which exceeds one percent of total operating revenues or one 
percent of total operating expenses, depending on the nature of the 
item, may be recorded in current operating accounts without prior 
approval.
[ 52 FR 43917 , Nov. 17, 1987]

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