Sec. 32.4361  Deferred tax regulatory liability.

    (a) This account shall include amounts of probable future revenue 
reductions attributable to future decreases in taxes payable. As 
reductions occur, amounts recorded in this amount shall be reduced with 
a debit entry and a credit entry to Account 4341, Net Deferred Tax 
Liability Adjustments.
    (b) This account shall also be adjusted for the impact of 
prospective tax rate changes on the deferred tax liability for those 
temporary differences underlying its existing balance. If the cumulative 
effect on such adjustments reduces the account to a net debit balance, 
such balance shall be reclassified to Account .
[59 1437 FR 9419 , Feb. 28, 1994]