Goto Section: 32.7300 | 32.7500 | Table of Contents
Revised as of October 1, 2020
Goto Year:2019 |
§ 32.7400 Nonoperating taxes.
This account shall include taxes arising from activities which are not
a part of the central operations of the entity.
(a) This account shall be charged and Account 4330, Unamortized
nonoperating investment tax credits--net, shall be credited with
investment tax credits generated from qualified expenditures related to
other operations which the company has elected to defer rather than
recognize currently in income.
(b) This account shall be credited and Account 4330 shall be charged
with the amortization of each year's investment tax credits included in
such accounts relating to amortization of previously deferred
investment tax credits of other property or regulated property, the
amortization of which does not serve to reduce costs of service (but
the unamortized balance does reduce rate base) for ratemaking purposes.
Such amortization shall be determined with reference to the period of
time used for computing book depreciation on the property with respect
to which the tax credits relate.
(c) This account shall be charged and Account 4070, Income
taxes--accrued, shall be credited for the amount of nonoperating
Federal income taxes and state and local income taxes for the current
period. This account shall also reflect subsequent adjustments to
amounts previously charged.
(d) Taxes shall be accrued each month on an estimated basis and
adjustments made as more current data becomes available.
(e) Companies that adopt the flow-through method of accounting for
investment tax credits shall reduce the calculated provision in this
account by the entire amount of the credit realized during the year.
Tax credits, other than investment tax credits, if normalized, shall be
recorded consistent with the accounting for investment tax credits.
(f) No entries shall be made to this account to reflect interperiod tax
(g) Taxes (both Federal and state) shall be accrued each month on an
estimated basis and adjustments made as later data becomes available.
(h) This account shall be charged and Account 4080, Other
taxes--accrued, shall be credited for all nonoperating taxes, other
than Federal, state and local income taxes, and payroll related taxes
for the current period. Among the items includable in this account are
property, gross receipts, franchise and capital stock taxes. This
account shall also reflect subsequent adjustments to amounts previously
(i) This account shall be charged or credited, as appropriate, with
contra entries recorded to the following accounts for nonoperating tax
expenses that has been deferred in accordance with § 32.22: 4110 Net
Current Deferred Nonoperating Income Taxes, 4350 Net Noncurrent
Deferred Nonoperating Income Taxes.
(j) Subsidiary record categories shall be maintained to distinguish
between property and nonproperty related deferrals and so that the
company may separately report the amounts contained herein that relate
to Federal, state and local income taxes. Such subsidiary record
categories shall be reported as required by part 43 of this chapter.
[ 67 FR 5699 , Feb. 6, 2002]
Goto Section: 32.7300 | 32.7500
Goto Year: 2019 |
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