(b) Subsidiary accounts are to be maintained as described in account 301. § 282.304 Insurance funds.

(a) This account shall include cash, marketable securities, and other quick assets placed on deposit or in the hands of trustees to guarantee the satisfaction of obligations for losses in instances where the carrier is a self-insurer in whole or in part.

(b) Subsidiary accounts shall be maintained by depositories or trustees, as the case may be, and further subdivided as to (1) cash, and (2) marketable securities.

§ 282.306 Debt retirement funds.

(a) This account shall include cash. marketable securities. and other quick assets placed on deposit, or in the hands of trustees as a sinking fund to meet obligations maturing in the future, or to carry out such operations as the retirement of preferred stock or the purchase of serial bonds.

(b) Subsidiary accounts shall be maintained by depositories or trustees, further subdivided to show cash or marketable securities and purposes of the fund.

§ 282.307 Escrow funds.

This account shall be charged with the amounts required to be deposited in the Escrow fund and credited with disbursements therefrom, in connection with the insurance of loans and mortgages financed by sale of bonds to the general public, pursuant to the provisions of section 1111 of the Merchant Marine Act, 1936, as amended, and/or the provisions of contracts or agreements as may be entered into. These funds shall be reported separately and maintained in accordance with such rules and regulations as the Maritime Administrator may issue.

[G.O. 22, Rev., Amdt. 5, 25 F.R. 13892, Dec. 29, 1960]

86-102-68

(a) This account shall include cash, marketable securities, and other quick assets appropriated for replacement of unsubsidized vessels (except in instances where account 303, "Construction reserve fund," is applicable), to fund reserves for pensions, and any other special funds for which no specific account is provided.

(b) Subsidiary accounts shall be maintained for each class of fund by depositories or trustees, and further subdivided to show (1) cash, and (2) marketable securities.

§ 282.310 Restricted funds.

This account shall be established at the time of the first deposit required therein, and shall be charged with deposits pursuant to the provisions of contracts or agreements. This account shall be credited with authorized withdrawals therefrom. These funds shall be reported separately and maintained in accordance with such rules and regulations as the Maritime Administrator may issue.

[G.O. 22, Rev., Amdt. 5, 25 F.R. 13892, Dec. 29, 1960]

§ 282.312 Special and guaranty deposits.

(a) This account shall include cash and the cost of securities deposited to guarantee the performance of conference and similar agreements; also deposits in lieu of mortgaged property sold, and other trust deposits, to be held until equivalent property is acquired or pending other disposition. This account shall also include deposits on containers, such as oil drums, ammonia cylinders, etc.

(b) Subsidiary accounts shall be maintained by depositories.

§ 282.315 Investments.

This account shall be subdivided as set forth in §§ 282.316, 282.320, 282.325, 282.328, and 282.329.

(a) This account shall be credited at the close of each accounting period with amounts necessary to reflect the decline in value of securities and other assets held as investments, where there appears to be a permanent impairment in their value, by contra charge to account 979, "Miscellaneous deductions from income," or account 990, "Extraordinary items," as appropriate.

(b) When securities are disposed of, the reserve balance in this account applicable to such securities shall be charged hereto.

[G.O. 22, 15 F.R. 7935, Nov. 21, 1950, as amended by Amdt. 6, 32 F.R. 20775, Dec. 23, 1967]

§ 282.330 Property and equipment.

(a) This account shall include the cost of acquisition or construction, including additions and betterments, of property and equipment owned by the carrier.

(b) This account shall be subdivided as set forth in §§ 282.331, 282.332, 282.337, 282.338, 282.343, 282.344, 282.349, 282.350, 282.353 282.354, and 282.359.

[G.O. 22, 15 F.R. 7935, Nov. 21, 1950, as amended by Amdt. 6, 32 F.R. 20775, Dec. 23, 1967]

§ 282.331

Floating equipment; vessels.

(a) This account shall include the cost of construction or acquisition, including additions and betterments, of vessels (steamships and motorships) and of appurtenances, furniture, and fixtures necessary to equip them for service, including inspection, trial runs, and tests. (b) As regards vessels with respect to which an operating-differential subsidy is paid, capitalizable costs must be determined in accordance with applicable orders, rules, and regulations prescribed or adopted by the Maritime Administration.

(c) Subsidiary accounts shall be maintained in such manner as to show by vessels the original cost to the carrier and cost of additions and betterments. § 282.332

sels.

Reserve for depreciation; ves

(a) This account shall be credited with all depreciation on vessels charged to account 981, "Depreciation; floating equipment; vessels."

(b) Credits to this account applicable to subsidized vessels shall be computed on a twenty-year life expectancy, except in instances where some other basis is specifically authorized by the Maritime Administration, with such allowances for residual values as approved by that Administration, and in accordance with applicable orders, rules, and regulations prescribed or adopted by the Maritime Administration.

(c) Subsidiary accounts shall be maintained by vessels.

[G.O. 22, 15 F.R. 7935, Nov. 21, 1950, as amended by Amdt. 6, 32 F.R. 20775, Dec. 23, 1967]

§ 282.337

Other floating equipment.

(a) This account shall include the cost of construction or acquisition, including additions and betterments, of other floating equipment, such as tugs, barges, scows, launches, lighters, floating cranes, etc., and of appurtenances, furniture, and fixtures necessary to equip for service including inspection, trial runs, and tests.

(b) Subsidiary accounts shall be maintained in such manner as to show the foregoing information by the various kinds of other floating equipment. § 282.338 Reserve for depreciation; other floating equipment.

(a) This account shall be credited with all depreciation charged to account

(a) This account shall include the cost of construction or acquisition, including additions and betterments, of terminal, land, buildings (including improvements to property under long term lease), shore cranes, trucks, furniture and fixtures, and other terminal gear and equipment.

(b) Subsidiary accounts shall be subdivided as between the various kinds of property and equipment, and shall be maintained in such manner as to show location, original cost, cost of additions and betterments.

[G.O. 22, Rev., Amdt. 6, 32 F.R. 20775, Dec. 23, 1967]

§ 282.344 Reserve for depreciation; terminal property and equipment.

(a) This account shall be credited with all depreciation on terminal property and equipment which is charged to account 987, "Depreciation; terminal property and equipment."

(b) Subsidiary accounts shall be maintained in the same manner as the corresponding accounts supporting account 343.

[G.O. 22, 15 F.R. 7935, Nov. 21, 1950, as amended by Amdt. 6, 32 F.R. 20776, Dec. 23, 1967]

§ 282.349

Other shipping property and equipment.

(a) This account shall include the cost, cost of additions and betterments, of land and buildings, furniture and fixtures, stevedoring and other cargo handling gear, repair yards, highway vehicles, and any other property and equipment used exclusively in shipping and auxiliary operations which are not applicable to accounts 331, 337, and 343.

(b) Subsidiary accounts shall be subdivided as between the various kinds of property and equipment and maintained in such manner as to show location, original cost, cost of additions and betterments.

[G.O. 22, 15 F.R. 7935, Nov. 21, 1950, as amended by Amdt. 6, 32 F.R. 20776, Dec. 23, 1967]

(a) This account shall be credited with all depreciation on other shipping property and equipment (as described in account 349) which is charged to account 988, "Depreciation-Other shipping property and equipment."

(b) Subsidiary accounts shall be maintained in the same manner as the corresponding accounts supporting account 349.

[G.O. 22, 15 F.R. 7935, Nov. 21, 1950, as amended by Amdt. 6, 32 F.R. 20776, Dec. 23, 1967]

§ 282.353 Non-shipping property and equipment.

(a) In instances where companies are engaged in non-shipping enterprises all property and equipment which can be allocated properly to such non-shipping enterprises shall be included in this account.

(b) Subsidiary accounts shall be subdivided as between the various kinds of non-shipping property and equipment, and maintained in such manner as to show location, original cost, and cost of additions.

§ 282.354 Reserve for depreciation; nonshipping property and equipment.

This account shall be subdivided as set forth in §§ 282.361, 282.362, 282.364, 282.365, 282.367-282.369, and 282.374.

§ 282.361 Claims pending.

(a) This account shall include any claims in litigation, and insurance claims in process of compilation or adjustment. After adjudication of claims in litigation, or adjustment of insurance claims, this account shall be credited and a charge made to account 155, “Claims receivable." Deductible average insurance losses (if policies provide deductibles) should at the same time be transferred to account 570, "Reserve for insurance."

(b) Subsidiary accounts shall be subdivided as between hull underwriters, P. & I. underwriters, general average claims connecting carriers, and such further classes as may be necessary. Each group of subsidiary accounts shall be maintained by vessels and voyages supported by sufficient detail to permit ready identification and analysis of each claim. § 282.362 Spare parts.

This account shall include the aquisition cost (or other applicable acquisition base) of shore side reserve spare parts and spare equipment acquired as standby equipment, such as propellers, propeller blades, tail shafts, crank shafts, pumps, rudders, hoisting engines, generators, rotors, anchors, etc., held for future installation on vessels of the carrier, the individual minimum gross book value of which is not less than $1,000. (The use of this account is mandatory for carriers having vessels under operating-differential subsidy agrements with the Maritime Administration.)

§ 282.364 Notes and accounts receivable from officers and employees.

This account shall include all amounts due from officers, directors, and employees other than (a) unpaid subscriptions to capital stock, and (b) amounts collectible in the ordinary course of business within one year. Records supporting entries to this account and subsidiary accounts shall be so maintained as to show separately such major classes as officers' personal accounts, employees' salary advances, and amounts due for such items as group insurance, and retirement annuity deposits. The records

referred to in this section shall be retained in accordance with the provisions of § 380.24 of this chapter.

[Rev. G. O. 22, 15 F. R. 7935, Nov. 21, 1950, as amended by Amdt. 4, 24 F.R. 3325, Apr. 29, 1959; 30 F.R. 12356, Sept. 28, 1965]

§ 282.365

Interest accruals for deposit

in statutory reserve funds.

This account shall include the periodic (not less frequent than annual) accruals of interest on cash and securities on deposit in Account 301, "Capital reserve fund" and account 302, "Special reserve fund", with corresponding credit to account 680, "Interest Income-Special Funds and Deposits".

[G. O. 22, Rev., Amdt. 2, 20 F. R. 8200, Nov. 1, 1955]

§ 282.367 Deferred operating-differential subsidy receivable.

This account shall include that part (if any) of accrued operating-differential subsidy receivable, the payment of which is withheld by the Maritime Administration, pursuant to Public Law 862, 80th Congress, or any subsequent legislation having the same or substantially similar force and effect.

§ 282.368

Other non-current notes and accounts receivable.

(a) This account shall include all noncurrent receivables from other than officers, employees, or related companies which, by agreement, are to run for more than one year from date established.

(b) Subsidiary accounts shall be maintained by individual debtors.

§ 282.369 Reserve for doubtful notes and accounts receivable.

This account shall be credited at the close of each accounting period with the amount charged to account 975, "Doubtful notes and accounts receivable," to provide for estimated uncollectible notes and accounts. (For balance sheet purposes, the balance in this account shall be segregated between current and noncurrent items.)

§ 282.370 Maritime Administration allowance for obsolete vessels.

This account shall include the gross amounts allowed by the Administration for obsolete vessels traded in, except where the obsolete vessel is retained under a Use Agreement, in which case this account is debited with the net trade-in allowance. Credit this account and debit account 359, "Construction

work in progress," with the amount of progress payments on new construction made by the Administration for the account of the purchaser (operator). [G.O. 22, Rev., Amdt. 3, 23 F.R. 6283, Aug. 15, 1958]

§ 282.374 Miscellaneous other assets.

This account shall include the estimated value of salvage recoverable from property retired when the recovery of the salvage is deferred for any reason; funds on deposit with closed banks; and all other deferred items not covered by other deferred asset accounts.

§ 282.375 Deferred charges and prepaid

This account shall include the amount of unexpired insurance premiums prepaid or recorded as a liability in advance of payment, but only to the extent that such premiums apply to a period more than one year following the date of the balance sheet. The proportions of the same premium payments properly chargeable to expenses prior to such period are provided for in account 191, "Prepaid current insurance." This account shall be subdivided to show separately prepayments on the several classes of insurance.

[G.O. 22, Rev., Amdt. 3, 23 F.R. 6283, Aug. 15, 1958]

§ 282.380 Advances to employees for

expenses.

(a) This account shall include all amounts advanced to officers and employees for travel, entertainment, and similar expenses, from which such expenses are to be paid and accounted for. This account shall not include imprest and petty cash funds in fixed amounts held by employees and branch offices for the purpose of making minor expenditures, requiring immediate payments, for which such funds are regularly reimbursed.

(b) Subsidiary accounts shall be maintained by employees, agents, or branch offices.

§ 282.384 Debt discount and expense.

(a) This account shall include all discount and expense for all classes of funded debt. The debt discount and ex

pense shall be amortized periodically over the respective lives of the securities by charge to account 971, Amortization-Debt discount and expense.

(b) When an issue of funded debt, or any part thereof, is refunded and at the date of refunding there is a balance of unamortized discount and expense relating to such issue, such balance, together with any premium paid in retiring such issue, shall be charged to account 979, "Miscellaneous deductions from income," or to account 990, "Extraordinary items," as may be appropriate, in accordance with the text of these accounts.

[G.O. 22, 15 F.R. 7935, Nov. 21, 1950, as amended by Amdt. 6, 32 F.R. 20776, Dec. 23, 1967]

(a) This account shall include the unamortized balance of the cost of acquiring long-term leases including rental applicable to future periods paid in advance, and the cost of alterations thereto and fixtures installed in leased property. This account should not include buildings erected on land under long-term lease or improvements thereto which shall be carried in appropriate property accounts.

(b) Amounts included in this account shall be amortized through such periodic charges to account 972, "AmortizationLeaseholds," as may be necessary for equitable cost distribution.