of payrolls such as old age benefits, unemployment compensation, and similar social security taxes.

(b) Sales taxes and taxes assessed against carriers for electrical energy, telegraph, telephone, radio, cables, checks, rental and safe deposit boxes, motor vehicle licenses, etc., shall be included in the respective accounts to which the cost of the material or services is charged. Social security taxes are to be included in the respective accounts to which the payrolls are charged.

§ 282.972 Amortization; leaseholds.

This account shall include the amortization of the cost of acquiring long-term leases, and the cost of alterations to, and fixtures installed in, leased property, with a corresponding credit to account 385, "Leaseholds."

§ 282.980 Depreciation; shipping property and equipment.

(a) This account shall include all accruals applicable to the accounting period for depreciation of all shipping property and equipment operated in transportation service by the carrier which is subject to depreciation accounting.

(b) This account shall be subdivided as set forth in §§ 282.981, 282.984, 282.987, and 282.988.

§ 282.981

tures, and other terminal gear and equipment with a corresponding credit to account 344, "Reserve for amortization and depreciation; Terminal property and equipment.'

§ 282.988 Depreciation; other shipping property and equipment.

This account shall include the accrual of depreciation of property and equipment incident to shipping and its auxiliary operations for which no other account has been specifically provided, including stevedoring and other cargo handling gear and equipment, repair yards and equipment and highway vehicles, with a corresponding credit to account 350, "Reserve for amortization and depreciation-Other shipping property and equipment."

Depreciation; floating equip

ment; vessels. This account shall include the accrual of depreciation of vessels (steamships and motor ships) owned by the carrier with a corresponding credit to account 332, "Reserve for amortization and depreciation-Vessels."

§ 282.984 Depreciation; other floating equipment.

The account shall include the accrual of depreciation of tugs, lighters, barges, scows, launches, floating cranes, and similar floating equipment, with a corresponding credit to account 338, "Reserve for amortization and depreciation-Other floating equipment." § 282.987 Depreciation; terminal property and equipment.

This account shall include the accrual of depreciation of terminal buildings, shore cranes, trucks, furniture and fix

Miscellaneous.

Losses due to conversion of foreign currencles. (Transferred from account 050, "Foreign exchange account.")

Premiums on bonds to assure performance of contracts when chargeable to income. Taxes on interest on funded debt payable at source under tax-free covenants. Trusts, current expenses of maintaining, and administering.

Trustees' commissions and fees for paying bond interest on coupons and expenses connected with such payments.

Loss on sale of shipping and nonshipping property and equipment.

Loss on sale of securities and charges to write down the book value of securities because of impairment in their value. Loss on company bonds reacquired.

(b) When the loss from sale of property and equipment, or securities, or from write down of securities because of impairment in value, or reacquisition of the company's own bonds is of an amount sufficiently large to constitute an extraordinary item, pursuant to § 282.0-11 such loss shall be charged to account 990, "Extraordinary items."

[G.O. 22, Rev., Amdt. 6, 32 F.R. 20776, Dec. 23, 1967]

(a) This account shall be charged with accrued provision for Federal income taxes applicable to ordinary income of the accounting year. See the text of account 599, "Earned surplus; unappropriated" and account 998, "Federal income taxes on extraordinary and prior period items," for recording other income tax consequences.

(b) Details pertaining to the tax consequences of other unusual and significant items and also cases where the tax consequences are disproportionate to the related amounts included in the income accounts, shall be submitted to the Administration for consideration and decision as to proper accounting.

(c) Income taxes which are refundable or reduced as the result of carryback or carry-forward of operating loss shall be credited to this account, if a carryback, in the year in which the loss occurs, or, if a carry-forward, in the year in which such loss is applied to reduce taxes. However, when the amount constitutes an extraordinary item pursuant to § 282.0-11, it shall be included in account 994, "Prior period items."

[G.O. 22, Rev., Amdt. 6, 32 F.R. 20777, Dec. 23, 1967]

EXTRAORDINARY AND PRIOR PERIOD ITEMS § 282.990 Extraordinary items (net).

(a) This account shall include extraordinary items accounted for during the current accounting year in accordance with the text of § 282.0-11, upon approval of the Administration. Among the items which shall be included in this account are:

Net gain or loss on sale of shipping and nonshipping property and equipment. Net gain or loss on sale of securities and charges to write down the book value of such securities because of impairment of value.

Net gain or loss on reacquisition of company bonds.

Change in application of accounting principles.

(b) This account shall be maintained to show the nature and gross amount of each debit and credit, together with the applicable year, vessel name, and voyage number.

(c) Federal income tax consequences of charges and credits to this account shall be recorded in account 998, "Federal income taxes on extraordinary and prior period items."

[G.O. 22, Rev., Amdt. 6, 32 F.R. 20777, Dec. 23, 1967]

§ 282.994 Prior period items (net).

(a) This account shall include unusual delayed items accounted for during the current accounting year in accordance with the text of § 282.0-11, upon approval of the Administration. Among the items which shall be included in this account are:

Unusual adjustments, refunds or assessments of Federal income taxes of prior years. Similar items representing transactions of prior years which are not identifiable with or do not result from business operations of the current year.

(b) This account shall be maintained to show the nature and gross amount of each debit and credit, together with the applicable year, vessel name, and voyage number.

(c) Federal income tax consequences of charges and credits to this account shall be recorded in account 998, "Federal income taxes on extraordinary and prior period items."

[G.O. 22, Rev., Amdt. 6, 32 F.R. 20777, Dec. 23, 1967]

§ 282.998 Federal income taxes on extraordinary and prior period items. This account shall include the estimated Federal income tax consequences (debit or credit) assignable to the aggregate of items of both taxable income and deductions from taxable income which, for accounting purposes, are classified as unusual and extraordinary, and are recorded in accounts 990, "Extraordinary items" and 994, "Prior period items."

[G.O. 22, Rev., Amdt. 6, 32 F.R. 20777, Dec. 23, 1967]

§ 282.000

APPENDIX

CLEARANCE ACCOUNTS

List of clearance accounts.

(a) This group of accounts is designed to accommodate transactions which cannot be allocated directly to balance sheet or income and expense accounts until such transactions have been completely accounted for. In the preparation of periodical financial and operating statements, it is essential that these clearance accounts be analyzed and the balances reflected therein be distributed to appropriate account classifications on such statements.

(b) The balances in this group of accounts applicable to terminated voyages, or other accounting units of a closed fiscal year, must not be carried forward to the succeeding fiseal year.

§ 282.001 Masters and pursers.

(a) This account shall be charged with amounts advanced to or collected by masters and pursers. The account shall be credited with the net amount of vessels' payrolls, with cash advances to members of the crew, with allowable expenses incurred, with endorsed travelers checks, and unexpended cash balances returned.

(b) Subsidiary accounts shall be maintained alphabetically by masters and pursers, and a separate account maintained for each voyage or other accounting unit.

§ 282.005 Allotments on wages of crews. This account shall be charged with payments made to allottees of crews and

shall be credited with deductions made therefor on vessels' payrolls.

§ 282.010 Agents and branch houses.

(a) This account shall serve as a clearance account for all current transactions with foreign and domestic agents, and branch houses of the carrier. The account shall be charged with cash advances to agents and branch houses, and with freight and other voyage revenue collectible by the agent or branch house in instances where arrangements are made with them to disburse vessels therefrom. Freight and other voyage revenues collectible by agents who are required to remit in full shall be recorded in account 151, "Traffic accounts receivable." This account shall be credited with remittances by the agents or branch houses, and with approved disbursements made for the account of the carrier.

(b) Subsidiary accounts shall be maintained alphabetically by names of agents or branch houses.

§ 282.012 Sub-agency operations.

(a) This account shall serve as a clearance account for all current transactions with other principals for whom the carrier acts as agent.

(b) The balances in this account shall be reflected in account 165, "Accounts receivable-Miscellaneous," and account 421, "Trade accounts payable," for balance-sheet purposes.

§ 282.025

Collections and deposits for passenger transportation.

(a) Gross passenger ticket sales and deposits, including those for future reservations, hotel accommodations, shore excursions, passenger taxes, etc., shall be credited to this account.

(b) As transportation is furnished to passengers by vessels of the carrier, this account shall be charged and account 500, "Unterminated voyage revenue," credited. Deposits or collections for other purposes, including commissions earned or payable incident thereto, shall be cleared from this account as soon as practicable to appropriate accounts designated in the Chart. The credit balances remaining in this account shall be reflected in account 495, "Advance ticket sales and deposits," for balance sheet purposes.

(c) Subsidiary accounts shall be maintained in sections corresponding to the classifications shown on the daily ticket sales report, examples of which are: Prepaid orders, one-way tickets, roundtrip tickets, exchange orders, railroad fares, hotel reservations, sightseeing tours, head tax, U. S. Government stamp tax, foreign government passenger taxes, commissions due agents and brokers, and commissions earned.

§ 282.030 Collections on unrecorded freight manifests.

(a) This account shall be credited with all collections of freight revenue from shippers or consignees prior to the recording of the revenue manifests. When the manifest is recorded, the balance in this account applicable thereto shall be cleared with a corresponding credit to account 500, "Unterminated voyage revenue."

(b) Subsidiary accounts shall be maintained alphabetically by vessels and consecutively by voyages or other accounting units.

§ 282.035 Advance and prepaid beyond charges, and miscellaneous manifested items.

(a) When vessels manifests are journalized, this account shall be credited with advance charges, prepaid beyond charges, and miscellaneous manifested items, such as: Consular fees, cargo insurance, handling, transshipment, and

transfer charges.

The account shall be

charged with expenses incurred in the performance of the services for which these collections were made. As transactions applicable to terminated voyages are completely accounted for, net debit balances in this account shall be transferred to account 700, "Operating expense-Terminated voyages," and net credit balances to account 600, “Operating revenue-Terminated voyages."

(b) Subsidiary accounts should be subdivided as between advance charges, prepaid beyond charges, and miscellaneous manifested items. Each group of accounts should be maintained alphabetically by vessels and consecutively by voyages.

§ 282.040 Bar accounts.

(a) This account shall be charged with inventories of bar supplies aboard vessels at the beginning of each voyage for sale to passengers, and with all purchases of such supplies during the voyage. The account shall be credited with the inventory of bar supplies on hand at the end of each voyage, and with gross sales during the voyage. As transactions applicable to terminated voyages are completely accounted for, net debit balances in this account shall be transferred to account 700, "Operating expense-Terminated voyages," and net credit balances to account 600, "Operating revenue-Terminated voyages." The balance remaining in this account after profits and losses, on sales applicable to voyages terminated during the accounting period, have been cleared to the vessel operating accounts, shall be reported on the balance sheet under the classification "Inventories".

(b) The subsidiary accounts shall be maintained alphabetically by vessels and consecutively by voyages.

accounted for, net debit balances in this account shall be transferred to account 700, "Operating expense-Terminated voyages," and net credit balances to account 600, “Operating revenue-terminated voyages." The balance remaining in this account after profits and losses, on sales applicable to voyages terminated during the accounting period, have been cleared to the vessel operating accounts, shall be reported on the balance sheet under the classification "Inventories".

(b) The subsidiary accounts shall be maintained alphabetically by vessels and consecutively by voyages.

§ 282.050 Foreign exchange account.

All gains or losses in foreign exchange shall be recorded in this account. At the close of each accounting period the balance in the account shall be transferred to account 690, "Miscellaneous other income" or accounts 979 "Miscellaneous deductions from income," as the case may be.

§ 282.055 Pool participation.

(a) This account shall be charged with contributions to pools for the purpose of equalizing revenue in accordance with pooling agreements and shall be credited with gross collections received from pools for the same purpose.

(b) Charges against the carrier in administering the pooling agreements shall be recorded in account 925, "Membership dues and subscription." The balances in this account at the close of each accounting period, as prescribed in pooling agreements, shall be transferred to account 640, "Collections from pools" and account 850, "Contributions to pools."

(c) This account shall be maintained to show separately transactions under each pooling agreement and accounting period.