Sec.  32.1120   Cash and equivalents.

   (a) This account shall include the amount of current funds available for use
   on demand in the hands of financial officers and agents, deposited in banks
   or other financial institutions and also funds in transit for which agents
   have received credit.

   (b) This account shall include the amount of cash on special deposit, other
   than in sinking and other special funds provided for elsewhere, to pay
   dividends, interest, and other debts, when such payments are due one year or
   less from the date of deposit; the amount of cash deposited to insure the
   performance of contracts to be performed within one year from date of the
   deposit; and other cash deposits of a special nature not provided for
   elsewhere. This account shall include the amount of cash deposited with
   trustees to be held until mortgaged property sold, destroyed, or otherwise
   disposed of is replaced, and also cash realized from the sale of the
   company's securities and deposited with trustees to be held until invested
   in physical property of the company or for disbursement when the purposes
   for which the securities were sold are accomplished.

   (c) Cash on special deposit to be held for more than one year from the date
   of deposit shall be included in Account 1410, Other noncurrent assets.

   (d) This account shall include the amount of cash advanced to officers,
   agents, employees, and others as petty cash or working funds from which
   expenditures are to be made and accounted for.

   (e) This account shall include the cost of current securities acquired for
   the purpose of temporarily investing cash, such as time drafts receivable
   and time loans, bankers' acceptances, United States Treasury certificates,
   marketable securities, and other similar investments of a temporary
   character.

   (f) Accumulated changes in the net unrealized losses of current marketable
   equity securities shall be included in the determination of net income in
   the period in which they occur in Account 7300, Other Nonoperating Income
   and Expense.

   (g) Subsidiary record categories shall be maintained in order that the
   entity may separately report the amounts of temporary investments that
   relate to affiliates and nonaffiliates. Such subsidiary record categories
   shall be reported as required by part 43 of this chapter.

   [ 67 FR 5681 , Feb. 6, 2002]