Sec. 32.4350  Net noncurrent deferred nonoperating income taxes.

    (a) This account shall include the balance of income tax expense 
(Federal, state, and local) that has been deferred to later periods as a 
result of comprehensive interperiod allocation related to nonoperating 
differences.
    (b) This account shall be credited or debited, as appropriate, and 
Account 7450, Provision for Deferred Nonoperating Income Taxes--Net, 
shall reflect the offset for the tax effect of revenues from other 
operations and extraordinary items and nonoperating expenses which have 
been included in the determination of taxable income, but which will not 
be included in the determination of book income or for the tax effect of 
nonoperating expenses and extraordinary items and nonoperating income 
which have been included in the determination of book income prior to 
the inclusion in the determination of taxable income.
    (c) As other assets or liabilities which generated the prepaid 
income tax or deferred income tax are reclassified from long-term or 
non-current status to current status, the appropriate deferred income 
tax shall be reclassified from this account to account 4110, Net Current 
Deferred Nonoperating Income Taxes.
    (d) This account shall also include the balance of the income tax 
effect (Federal, State and local) related to noncurrent extraordinary 
items which have been included in the determination of taxable income in 
a period different from when it is included in the determination of book 
income, that is, more than one year.
    (e) This account shall be charged or credited with the contra amount 
recorded to Account 7640, Provision for Deferred Income Tax Effect of 
Extraordinary Items--Net, in accordance with Sec. 32.22 of subpart B.
    (f) As the extraordinary item which generated the deferred income 
tax becomes current, the appropriate deferred income tax shall be 
reclassified from this account to Account 4110, Net Current Deferred 
Nonoperating Income Taxes.
    (g) The classificaiton of deferred income taxes as current or 
noncurrent shall follow the classification of the asset or liability 
that gave rise to the deferred income tax. If there is no related asset 
or liability, classification shall be based on the expected turnaround 
of the temporary difference.
    (h) Subsidiary record categories shall be maintained in order that 
the company may separately report the amounts contained herein that are 
property related and those that are nonproperty related. Such subsidiary 
record categories shall be reported as required by part 43 of this 
Commission's Rules and Regulations.
[ 51 FR 43499 , Dec. 2, 1986, as amended at  59 FR 9419 , Feb. 28, 1994]

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