§ 32.1410   Other noncurrent assets.

   (a) This account shall include the acquisition cost of the company's
   investment in equity or other securities issued or assumed by
   affiliated companies, including securities held in special funds
   (sinking funds). The carrying value of the investment (securities)
   accounted for on the equity method shall be adjusted to recognize the
   company's share of the earnings or losses and dividends received or
   receivable of the affiliated company from the date of acquisition.
   (Note also Account 1170, Receivables, and Account 7300, Nonoperating
   income and expense.)

   (b) This account shall include the acquisition cost of the Company's
   investment in securities issued or assumed by nonaffiliated companies
   and individuals, and also its investment advances to such parties and
   special deposits of cash for more than one year from date of deposit.

   (c) Declines in value of investments, including those accounted for
   under the cost method, 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.

   (d) 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.

   (e) Amounts due from affiliated and nonaffiliated companies which are
   subject to current settlement shall be included in Account 1170,
   Receivables.

   (f) This account shall include the total unamortized balance of debt
   issuance expense for all classes of outstanding long-term debt. Amounts
   included in this account shall be amortized monthly and charged to
   account 7500, Interest and related items.

   (g) Debt Issuance expense includes all expenses in connection with the
   issuance and sale of evidence of debt, such as fees for drafting
   mortgages and trust deeds; fees and taxes for issuing or recording
   evidences of debt; costs of engraving and printing bonds, certificates
   of indebtedness, and other commercial paper; fees paid trustees;
   specific costs of obtaining governmental authority; fees for legal
   services; fees and commissions paid underwriters, brokers, and
   salesmen; fees and expenses of listing on exchanges, and other like
   costs. A subsidiary record shall be kept of each issue outstanding.

   (h) This account shall include the amount of cash and other assets
   which are held by trustees or by the company's treasurer in a distinct
   fund, for the purpose of redeeming outstanding obligations. Interest or
   other income arising from funds carried in this account shall generally
   be charged to this account. A subsidiary record shall be kept for each
   sinking fund which shall designate the obligation in support of which
   the fund was created.

   (i) This account shall include the amount of all noncurrent assets
   which are not includable in paragraphs (a) through (h) of this section.

   (j) A subsidiary record shall be kept identifying separately common
   stocks, preferred stocks, long-term debt, advances to affiliates, and
   investment advances. A subsidiary record shall also be kept identifying
   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.

   (k) Subsidiary record categories shall be maintained in order that the
   entity may separately report the amounts contained herein that relate
   to the equity method and the cost method. Such subsidiary record
   categories shall be reported as required by part 43 of this chapter.

   [ 67 FR 5682 , Feb. 6, 2002]

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