balance in the discount, premium, and expense account for the particular class of funded debt reacquired shall be closed to account No. 304, "Miscellaneous credits", or account No. 314, "Miscellaneous debits", as may be appropriate. (f) If the net of the balances in the discount, premium, and expense accounts for all classes of funded debt outstanding is a debit balance, the amount shall be included in the balance sheet in account No. 26, "Discount of funded debt", and if a credit balance the amount shall be included in account No. 71, "Premium on funded debt."*+ 20.0-28 Conversion of securities. Before recording journal entries which it is proposed to spread upon the carrier's books to record the reacquirement of capital stock or funded debt securities issued or assumed by the carrier through issuance in exchange therefor of either the carrier's capital stock or funded debt securities they shall be presented to this Commission for consideration. The text of such entries shall give complete information concerning the plan of exchange; the authority of the regulatory body with respect thereto, if any; and shall show the basis upon which the amounts in the entries have been determined.*t 20.0-29 Contingent assets and liabilities. (a) Contingent assets and liabilities shall not be included in the body of the balance-sheet statement. Contingent assets represent possible source of value to the carrier contingent upon the fulfillment of conditions regarded as uncertain. Contingent liabilities include items which may, under certain conditions, become obligations of the carrier, but are neither direct nor assumed obligations on the date of the balance sheet. (b) Contingent assets and liabilities shall be shown in detail in a supplementary statement accompanying the balance sheet.*† BALANCE SHEET ACCOUNTS INVESTMENTS 20.1 Investment in carrier property. This account shall include the cost to the carrier of physical property used in or held under a definite plan for pipe-line operations, in existence at the date of the balance-sheet statement. The carrier's records shall be so kept as to show the charges and credits to this account classified in accordance with the accounts for investment in carrier property.*†† NOTE A: This account shall not include any item representing titles to securities. NOTE B: When any carrier property is acquired under agreement which provides that the cost shall be paid in installments, the cost (its money cost at time of purchase) shall be charged to the appropriate property-investment accounts at the time of its acquisition, and included in this account in the same manner as the cost of property purchased outright. When the par value of notes or other securities issued in payment, or in part payment, for such property is more or less than its actual cash value at the time of purchase, or of the proportion of the value to which the securities are applicable, the difference between the par value of the securities and the actual cash value of the property, or of the proportion of the value paid for by the securities, shall be charged or credited to the proper discount and premium account. (See also §§ 20.0-26, 20.0-27.) NOTE C: The carrier's invesment in noncarrier property shall be included in account No. 5, "Miscellaneous physical property." Page 468 *For statutory citation, see note to § 20.00-1. ††In §§ 20.1 to 20.82, inclusive, the numbers to the right of the decimal point correspond with the respective account numbers in Uniform system of accounts for pipe-line companies (balance-sheet accounts), Interstate Commerce Commission, Nov. 16, 1934. Cross references to accounts are made by citing the account number, e. g., account No. 12, instead of the corresponding section number (§ 20.12). 20.2 Cost of organization. This account shall include the cost of organizing and incorporating the company and the expense of issuing its capital stock. (See also § 20.0-26.) ITEMS [Note § 20.01-6.] Amounts paid for legal services. Amounts paid for privileges of incorporation. Fees and taxes for original capital-stock issues. Listing capital stock on exchanges. Office expenses incident to organizing and preparing the company for operation. Preparing, engraving, printing, and distributing prospectuses and certificates in connection with original and additional stock issues. Revenue stamps on original issues of capital stock. Special counsel and other fees and expenses in mergers, consolidations, and reorganizations. NOTE A: Whenever all or any portion of an issue of capital stock is retired, the proportionate part of the amounts included in this account for expenses incurred in connection with such issue shall be retired. NOTE B: When charges are made to this account for expenses incurred in mergers, consolidations, or reorganization, amounts previously included herein on the books of the various companies concerned should not be carried over unless it is clear that such items involve no duplication when added to the new charges made or to be made. 20.3 Operating oil supply. This account shall include the cost of oil owned by the carrier and used to maintain lines and storage tanks in condition for the transportation of commercial oil.*† 20.4 Sinking funds. (a) This account shall include the amount of cash, the book cost of securities issued by other companies, and the par value of nominally issued and nominally outstanding (note § 20.01-2 (q) (r)) securities issued or assumed by the carrier; and other assets which are held by trustees or by the carrier's treasurer in a distinct fund for the purpose of redeeming outstanding obligations. (See also §§ 20.0-23, 20.0-24, 20.0-25.) (b) A separate account should be kept for each sinking fund under a title which shall designate the obligation in support of which the fund was created.** 20.5 Miscellaneous physical property. This account shall include the carrier's investment in physical property other than carrier property assignable to account 1, "Investment in carrier property", including hotels, restaurants, commercial power plants, etc., which are entirely distinct from carrier property and are not operated in connection with pipe-line service of the carrier. ITEMS [Note § 20.01–6.] Commercial power plants. Hotels and restaurants. Lands and buildings not used in pipe-line service. *For statutory citation, see note to § 20.00-1. Page 469 Lands and property acquired and held in anticipation of an indefinite future use. Mineral and timber lands. Pipe-line material leased to others under long-term lease. 20.6 Investments in affiliated companies. (a) This account shall include the book value (note § 20.01-2 (d)) of the carrier's investment advances to affiliated companies, also of its investment in securities issued or assumed by such companies, such securities not being held in special deposits or in special funds. (Note § 20.01-2 (c)) (b) This account shall be subdivided: (1) Stocks. (2) Bonds. (3) Notes, including herein not only notes that run longer than 2 years and all notes of affiliated companies held as investments, but also notes payable on demand or within 2 years from the date of issue when it is mutually understood and intended that the notes shall not be enforced as current assets. (4) Advances. (c) The carrier's records shall be kept in such manner that the book value of securities pledged as collateral security for any of the carrier's funded debt or short-term loans and the ledger value of securities unpledged may be shown separately in the annual report to this Commission.*+ NOTE A: Accounts with affiliated companies which are subject to current settlements, such as charges for material and supplies currently furnished, charges for repairs to equipment, etc., shall be classed as current assets or current liabilities, as may be appropriate. NOTE B: The value of securities borrowed by the carrier and pledged shall not be included in this account. NOTE C: The book value of securities pledged for purposes other than that of security for funded debt or short-term loans shall be included in account No. 12, "Special deposits" (when for 2 years or less), or 22, "Insurance and other funds", as may be appropriate. 20.7 Other investments. (a) This account shall include the book value of carrier's investment in securities issued or assumed by nonaffiliated companies (note § 20.01-2 (s)) and individuals other than securities held in special funds (see note C to this account); also its investment advances to such parties and special deposits of cash for more than 2 years from date of deposit. (b) This account shall be subdivided: (1) Stocks. (2) Bonds. (3) Notes, including herein not only notes that run longer than 2 years and all notes of nonaffiliated companies and of individuals held as investments, but also notes payable on demand or within 2 years from date of issue when it is mutually understood and intended that the notes shall not be enforced as current assets. Page 470 *For statutory citation, see note to § 20.00-1. (4) Advances. (5) Miscellaneous (including "special deposits" for more than 2 years from date of deposit). (c) The carrier's records shall be kept in such manner that the ledger value of securities pledged as collateral security for any of the carrier's funded debt or short-term loans and the book value of securities unpledged may be shown separately in the annual report to this Commission.** NOTE A: Accounts with nonaffiliated companies which are subject to current settlements, such as charges for material and supplies currently furnished, charges for repairs to equipment, etc., shall be classed as current assets or current liabilities, as may be appropriate. NOTE B: The value of securities borrowed by the carrier and pledged shall not be included in this account. NOTE C: The book value of securities pledged for purposes other than of security for funded debt or short-term loans shall be included in account No. 12, "Special deposits" (when for 2 years or less), or No. 22, "Insurance and other funds", as may be appropriate. NOTE D: Working-fund advances to nonaffiliated companies other than those for investment shall be included in account No. 21, "Working-fund advances." 20.8 Company securities owned. (a) This account shall include the book value of nominally issued and nominally outstanding (note § 20.01-2 (q), (r)) securities issued or assumed by the carrier, other than such securities held in insurance or other special funds. (Note § 20.0-24.) (b) This account shall be maintained to show: (1) For stock: (i) Par stock: (a) Number of shares and total par value of shares unpledged. (6) Number of shares and total par value of shares pledged. (ii) Nonpar stock: Number of shares and any nominal value of shares, unpledged. (b) Number of shares and any nominal value of shares pledged. (2) For funded debt: (i) Total par value unpledged. (ii) Total par value pledged.*+ CURRENT ASSETS 20.9 Cash. (a) To this account shall be charged all cash received and to it shall be credited all cash actually paid out. The term "cash" includes metallic money, bank bills, legal tender, notes, checks, or other representatives of money. (b) This account shall be so kept as to include in the balance of the account the actual amount in the carrier's general cash fund including the amounts held in its treasury, amounts deposited with banks and trust companies subject to check, and cash in transit from agents.*t *For statutory citation, see note to § 20.00-1. Page 471 20.10 Demand loans and deposits. This account shall include the amount of demand loans fully secured by stocks, bonds, and other marketable collateral, and of deposits with banks and trust companies when such items are subject to collection on demand. (See also § 20.0–22.) *† 20.11 Time drafts and deposits. This account shall include the amount of time drafts receivable and time deposits with banks and trust companies. (See also § 20.0-22.)*+ 20.12 Special deposits. This account shall include funds specially deposited (other than in sinking funds or deposits under mortgage provisions) for payment of dividends, interest, and other debts, when such payments are due 2 years or less from the date of deposit; also money and securities deposited to insure the performance of contracts to be performed within 2 years from the date of the deposit; and other deposits of a special nature not provided for elsewhere. (See also § 20.0-22.)** NOTE A: Special deposits due more than 2 years from date of deposit shall be included in account No. 6, "Investments in affiliated companies", or No. 7, "Other investments." NOTE B: Securities pledged as collateral for the carrier's funded debt or short-term loans shall be included, in accordance with the character of the securities pledged in accounts Nos. 6, "Investments in affiliated companies"; 7, "Other investments"; or 8, "Company securities owned." NOTE C: The balance sheet in the annual report to this Commission shall show in the first short column the balance in this account. This balance shall be divided to show in the second short column the par value of securities issued or assumed and to show the book value of other assets in the fund in the long column. (See also § 20.0–24.) 20.13 Notes receivable. This account shall include the book value of all collectible obligations in the form of demand or time loans (see note B hereunder) and other similar evidences (except interest coupons) of money receivable within a time not exceeding 2 years from date of issue. (See also § 20.0–22.)** NOTE A: This account shall not include obligations any part of which shall mature more than 2 years after date of issue, obligations maturing serially any part of which matures more than 2 years after date of issue, or demand or short-term notes held as investments includible in account No. 6, "Investments in affiliated companies." NOTE B: Demand loans fully secured by stocks, bonds, or other marketable collateral shall be included in account No. 10, "Demand loans and deposits." 20.14 Agents' balances. This account shall include the net balance due in current accounts from agents and from other employees and representatives charged with the collection or custody of current revenue. (See also § 20.0-22.) *† NOTE: Amounts advanced to general and special agents as working funds shall be included in account No. 21, "Working-fund advances." 20.15 Revenue receivable. This account shall include the amount. receivable from the transportation and storage of oil and oil products. This account shall be subdivided to show: (a) Amount of local revenue receivable. (b) Amount of joint revenue receivable from companies parties to joint tariffs.** Page 472 *For statutory citation, see note to § 20.00-1. |