§ 32.4340   Net noncurrent deferred operating income taxes.

   (a) This account shall include the balance of income tax expense related to
   noncurrent items from regulated operations which have been deferred to later
   periods as a result of comprehensive interperiod tax allocation related to
   temporary differences that arise from regulated operations.

   (b) This account shall be credited or debited, as appropriate, and Account
   7250, Provision for Deferred Operating Income Taxes—Net, shall reflect the
   offset for the tax effect of revenues and expenses from regulated operations
   which have been included in the determination of taxable income, but which
   will not be included in the determination of book income or for the tax
   effect of revenues and expenses from regulated operations which have been
   included in the determination of book income prior to the inclusion in the
   determination of taxable income.

   (c) As regulated assets or liabilities which generated the prepaid income
   tax or deferred income tax are reclassified from long-term or noncurrent
   status to current status, the appropriate deferred income tax shall be
   reclassified  from  this account to Account 4100, Net Current Deferred
   Operating Income Taxes.

   (d) The classification of deferred income taxes as current or noncurrent
   shall follow the classification of the asset or liability that gave rise to
   the  deferred  income  tax. If there is no related asset or liability,
   classification shall be based on the expected turnaround of the temporary
   difference.

   (e) Subsidiary record categories shall be maintained in order that the
   company may separately report the amounts contained herein that are property
   related and those that are nonproperty related. Such subsidiary record
   categories shall be reported as required by part 43 of this Commission's
   Rules and Regulations.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  59 FR 9419 , Feb. 28, 1994]

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