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ing balance of unused and unexpired credits. Concurrently with the utilization of investment tax credits, this account 2131 shall be charged, and profit and loss account 91 Provision for Income Taxes shall be credited. At the option of the air carrier, credits utilized in the reduction of income tax liabilities may be carried through profit and loss account 93.1 Investment Tax Credits Deferred, on a consistent basis from year to year, to balance sheet account 2345 Deferred Investment Tax Credits for amortization over the service life of related property to profit and loss account 93.2 Amortization of Deferred Investment Tax Credits.
(c) In the event that investment tax credits utilized in the reduction of tax liabilities are later disallowed as a result of premature disposition of the property, or otherwise, such disallowed amounts shall be credited to this account 2131 and charged to profit and loss account 91 Provision for Income Taxes. The amount charged to account 91 shall then be cleared through profit and loss account 93.1 to balance sheet account 2345 Deferred Investment Tax Credits to the extent of any related unamortized balance therein.
(d) Each air carrier shall disclose on schedule P-2 of its CAB Form 41 for each calendar quarter whether utilized credits are accounted for on a current or deferred basis under subsection (b) above. The method selected shall be consistently followed by the carrier and shall not be changed unless an application is submitted for Board approval at least 18 months before the date the change is scheduled to become effective. (ER 425. 30 F.R. 745. Jan. 1, 1965 amended by ER-437, 30 F.R. 8829, July 14, 1965: ER-437, 30 F.R. 9001, July 17, 19651 2139 Other Accrued Taxes.
Record here accruals for taxes. exclusive of Federal income taxes, constituting a charge borne by the air carrier, as opposed to those collected as an agent for others. 2140 Dividends Declared.
Record here in separate subdivisions for each class and series of capital stock, all dividends declared but unpaid on capital stock.
2150 Air Travel Plan Liability.
Record here the air carrier's liability for deposits received under air travel plan contracts. 2160 Unearned Transportation Revenue.
(a) Record here balances representing the value of unused transportation sold and to be provided by the air carrier.
(b) Earned revenue and the value of transportation sold but not used or refunded shall be consistently and periodically cleared by debit to this account and credit to the appropriate profit and loss revenue account. Amounts receivable for transportation to be provided by the air carrier shall be debited to balance sheet account 1240 Accounts Receivable-General Traffic.
(c) Subaccounts to this account shall be established to record balances pertaining to passenger and cargo transportation sold, respectively, and separately to sales in scheduled and nonscheduled services.
(d) In accordance with the provisions of section 22(d) or section 32(d), as applicable, a statement shall be filed with the Board which fully explains the accounting methods and bases of clearing to income both earned and unredeemed transportation sales. The statement shall specify the date when the analysis supporting the verification re. quired by section 2-17 will be made as a consistent practice. (ER-606, 35 F.R. 4614, Mar. 17, 1970) 2190 Other Current Liabilities.
Record here current and accrued liabilities not provided for in accounts 2110 to 2160, inclusive, (ER-606, 35 F.R. 4614, Mar. 17, 1970)
NONCURRENT LIABILITIES 2210 Long-Term Debt.
Record here the face value or principal amount of debt securities issued or assumed by the air carrier and held by other than associated companies, which has not been retired or cancelled and is not payable within 12 months of the balance sheet date, except as provided in section 5-7.
2240 Advances from Associated Com.
panies. Record here net amounts due associated companies for notes, loans and advances which are not settled currently. Balances payable to and receivable from different associated companies shall not be offset. 2245 Advances from Nontransport Divi.
sions. (a) Record here net advances, including amounts settled currently, from nontransport divisions for which separate records and books of account are maintained.
(b) Each nontransport division shall be accounted for separately in net amounts payable, which shall be included in this account, or net amounts receivable which shall be included in balance sheet account 1520 Advances to Nontransport Divisions. 2250 Pension Liability.
Record here the liability of the air carrier under employee pension plans, to which either or both employees and the air carrier contribute, if the plan is administered by the air carrier. 2260 Company Stock Purchase Plan
Liability, Record here the liability for installments received on capital stock from company personnel who are not bound by legally enforceable subscription contracts. 2290 Other Noncurrent Liabilities.
Record here noncurrent liabilities not provided for in balance sheet accounts 2210 to 2260, inclusive, such as accruals for personnel dismissal liability, and accruals of other demonstrable miscellaneous noncurrent liabilities.
DEFERRED CREDITS 2330 Unamortized Premium on Debt.
(a) Record here the excess of the cash value of consideration received over the par value plus accrued interest on debt securities issued.
(b) Amounts recorded in this account shall be amortized to profit and loss account 87 Interest Expense.
2340 Deferred Federal Income Taxes.
(a) Record here deferred income tax credits and debits arising from different treatment for tax and book accounting purposes of those income elements spe-' cifically set forth in section 2-6(b).
(b) This account shall be credited or debited, as appropriate and profit and loss subaccount 92.1 Current Provisions for Deferred Taxes shall be debited or credited, each quarter, with deferred income taxes applicable to the income ele.' ments for which the related income tax effect is deferred. Deferred tax provisions shall be computed at tax rates, under existing law, at which the deferred taxes are payable. This means that insofar as income differences result from the application of different residual values in determining depreciation the applicable deferred tax shall be accrued at the appropriate capital gain rate.
(c) This account shall be debited or credited as appropriate, and profit and loss subaccount 92.2 Application of Taxes Deferred shall be credited or debited, each quarter, with deferred tax amounts previously accrued which are allocablo to income of the current period.
(d) Upon adjustment or elimination of the income element for which income taxes are deferred, the related deferred tax balance included in this account shall be correspondingly adjusted or elimi. nated by debit or credit, as appropriate, to profit and loss subaccount 92.3 Adjustment of Deferred Taxes.
(e) Any debit balance herein shall be treated for statement purposes, as a special subaccount of balance sheet account 1890 Other Deferred Charges.
(1) Each air carrier is restricted in its use of this account to the purposes set forth in section 2-6. Deferred tax balances shall not be reversed or revised without prior approval of the Civil Aeronautics Board except that correction of clerical errors shall be effected upon the initiative of the air carrier. All adjustments shall be effected through appropriate credits or debits to profit and loss subaccount 92.3 Adjustment of Deferred Taxes. Full explanation of each adjustment shall be set forth in CAB Form 41 report for the period in which the adjustment is made.
2345 Deferred investment tax credits.
Record here investment tax credits utilized as reduction of tax liabilities, when the carrier exercises the option to defer such credits for amortization over the service life of related equipment (see section 6-2131). IER-425, 30 F.R. 745, Jan. 23, 1965) 2350 Reserve for Self-Insurance.
(a) Record here all accruals through charges against income for uninsured losses. Segregations of retained earnings for uninsured loss contingencies shall not be credited to this account but to balance sheet account 2930 Appropriations of Retained Earnings. All sustained losses associated with risks for which accruals are being made shall be charged to this account. If through the operation of the carrier's self-insurance plan a debit balance results in this account, such debit balance shall not be reclassified to another account for either statement or accounting purposes but shall remain in this account until liquidated through operation of the plan in subsequent periods. Upon each redetermination of self-insurance requirements, pursuant to section 2–13, any balances of material amount in excess of those required to cover current risks borne by the air carrier shall be credited to profit and loss account 96 Special Income CredIts and Debits (Net) rather than to insurance expense accounts. (See section 2-13, Establishment of Reserves.)
(b) The losses charged to this account shall be limited to the net losses associated with each casualty for which self-insurance reserves are provided, after offsetting any recoveries from purchased insurance, as accumulated in balance sheet account 1890 Other Deferred Charges. (See also section 2–13.) Under co-insurance programs, this account shall be charged with losses borne by the carrier and not covered by purchased insurance. Any excess of accumulated proceeds from purchased insurance under such co-insurance programs over the depreciated cost of accumulated property losses during each insured period shall be credited to this account to the extent losses associated with such casualties have been charged to this account during such period. Any remaining excess accumulated during
the insured period shall be credited to profit and loss account 81 Capital Gains and Losses and shall not be credited to this account. The cost of ordinary maintenance and overhaul work performed along with the repair of casualty damage shall be charged to the appropriate maintenance accounts and not to this account. Refunds of insurance premiums whether based upon the air carrier's casualty experience, or otherwise, shall not be credited to this account but to the applicable insurance expense account.
(c) Each air carrier shall maintain appropriate records for each type and class of property risk or other risk for which self-insurance reserves are provided.
(d) The air carrier shall submit in writing to the Civil Aeronautics Board a statement describing the air carrier's policy with respect to self-insurance pursuant to section 2-13. 2390 Other Deferred Credits.
Record here credits, not provided for elsewhere, the proper final disposition of which cannot be effected until additional information has been received.
STOCKHOLDER EQUITY 2820 Preferred Stock.
Record here in separate subdivisions for each class and series, the par or stated value of preferred capital stock issued or in the case of no-par stock without stated value, the full consider&tion received. 2840 Common Stock.
Record here in separate subdivisions for each class and series, the par or stated value of common stock issued or in case of no-par stock without stated value, the full consideration received. 2860 Capital Stock Subscribed and Un.
issued. Record here in separate subdivisions for each class and series, the par or stated value, or the subscription price in the case of stock without par or stated value, of legally enforceable subscriptions to the capital stock of the air carrier. 2890 Other Paid-In Capital.
(a) Record here in separate subdivisions for each class and series, the
difference between the price at which accounts cannot be classified as to the sourco capital stock is sold and the par or
thereof. stated value of such stock; gains or losses 2930 Appropriations of Retained Earn. arising from the reacquisition and the ings. resale or retirement of each class and
(a) Record here amounts of retained series of capital stock; donations; the earnings segregated for contingencies excess of retained earnings capitalized and other special purposes, including reover par or stated value of capital stock tained earnings segregated in connection issued; and adjustments in capital re with self-insurance plans. sulting from reorganization or recapital (b) Charges resulting from the maization. This account shall also include terialization of events for which retained the balances of contributions to the busi earnings have been appropriated shall ness enterprise of individual proprietors
not be entered in this account but in apor partners.
propriate profit and loss accounts. Bal
ances in this account shall be returned (b) Each air carrier shall maintain
to balance sheet account 2940 Unapthe following subaccounts:
propriated Retained Earnings when the 2890.1 Premium on Capital Stock.
reason for which created no longer Record here in separate subdivisions for
exists. each class and series of capital stock issued
2940 Unappropriated Retained Earn. the excess of the cash value of consideration
ings. received over the par or stated value and accrued dividends of stock issued together (a) Record here the net income or with assessments against stockholders repre loss from operations of the air carrier senting payments required in excess of par and dividends declared on capital stock. or stated value.
(b) This account shall not be charged 2890.2 Discount on Capital Stock.
with dividends on treasury stock but Record here in separate subdivisions for
may be charged with dividends on capi. each class and series of capital stock Issued,
tal stock of the air carrier held in special the excess of the par or stated value over the funds not under the control of the air cash value of consideration received, less carrier. If a dividend is not payable in accrued dividends. Discount applicable to cash the values entered in this account a particular class and series of capital stock
shall be completely described. may be offset against premiums from the
(c) Delayed credits or charges to insame class and series of capital stock. Discounts and premiums on different classes
come shall not be entered in this account and series of capital stock shall not be offset. directly but in appropriate profit and The air carrier may, at its option, record in loss accounts. this subaccount commissions and expenses (d) Net income or loss accounted for incurred in the issuance of capital stock and during the current fiscal year shall not may charge balance sheet account 2940
be entered in this account until the close Unappropriated Retained Earnings to the
of the fiscal year. Individual proprietorextent capital stock expense may exceed any existing balance of paid-in capital over the
ships or partnerships may clear net inpar or stated value of capital stock.
come or loss accounted for during the
year directly to balance sheet account 2890.3 Other Capital Stock Transactions.
2890 Other Paid-In Capital, or optionRecord here, in separate subdivisions for ally, to this account for subsequent each class and series, the balance of credits
transfer to balance sheet account 2890 arising from the reacquisition and resale or
Other Paid-In Capital. cancellation of capital stock, credits arising from a reduction in the par or stated value 2990 Treasury Stock. of capital stock or the net balance of credits or debits resulting from other paid-in capital
(a) Charge here the cost of capital transactions, not provided for elsewhere,
stock issued by the air carrier reacquired which is identified with particular classes
by it and not retired or cancelled. Cap. and series of capital stock.
ital credits or debits resulting from the 2890.9 Miscellaneous Paid-In Capital.
resale or retirement of capital stock held
in this account shall be entered in balRecord here all other paid-in capital
ance sheet account 2890.3 Other Capital credits or debits not identified with partic
Stock Transactions. ular classes and series of capital stock such es capital provided by donations from com
(b) Separate records shall be estabpany stockholders and other paid-in capital lished for each class and series of capital which at the effective date of this system of stock held in this account.
OPERATING REVENUES 01 Passenger.
01.1 Passenger-first class ..
01.2 Passenger--coach... 02 United States mail.
02. Non priority. 03 Foreign Mail. 06 Property. 06.1
Express.. 06.8 Freight
06.5 Excess passenger baggage... 07 Charter and special.
10.1 Gross revenues..
10.3 Other expenses. 11 Rents.
11.1 Gross revenues..
11.3 Other expenses.. 12 Limousine service.
12.1 Gross revenues..
12.3 Other expenses.
13.1 Gross revenues.
13.5 Other expenses.
14.1 Gross revenues..
14.3 Other expenses.
15.1 Gross revenues..
16.3 Other expenses.
16,1 Gross revenues..... 16.2 Depreciation expense.
16.3 Other expenses. 17 Air cargo services.
17.1 Gross revenues.
17.3 Other expenses.
18.1 Gross revenues.-
18.3 Other expenses.
19.1 Reservations cancellation fees.. 19.9 Miscellaneous operating revenues.