debt," and the total of the net credit balances in account No. 546, "Premium on funded debt." Each month there shall be charged to income account No. 325, "Amortization of discount on funded debt," a proportion (based upon the ratio of such fiscal period to the remaining life of the respective securities) of each debit balance in these accounts, and there shall also be credited to income account No. 311, "Release of premiums on funded debt," a similarly based proportion of each credit balance in these accounts. Through charges to Profit and Loss carriers may at any time extinguish all or any part of debit balances remaining in any of these accounts.*† 18.5-5 Reacquired securities. Capital stock or funded debt liability accounts in the balance sheet are intended to include only the par value of capital stock or funded debt securities that have been actually issued to bona fide holders for value, or after such issue by another company have been assumed by the accounting company. If after such issue or assumption they have been reacquired by the carrier under circumstances which require they shall not be treated as paid or retired they shall be charged at par value to the appropriate asset account, but their amounts, though appearing on the balance-sheet statement, shall be omitted from the total of the assets and deducted from the liabilities. In the case of securities held in sinking or other funds they shall be shown separately as a deduction from both the asset and liability accounts, in order that the asset accounts for securities owned shall include only securities of other companies and that the liability accounts for securities issued or assumed shall include only those actually outstanding. In case, however, the premium or discount realized at the prior sale of the securities reacquired has been included in an asset account other than the premiums and discounts account, such asset account shall be concurrently adjusted through Profit and Loss to the extent of the premium or discount previously included therein with respect to the securities reacquired. If any such securities are reacquired for more or less than their par value, the difference between the par value and the cost of reacquirement shall be debited or credited to Profit and Loss Account, together with any amounts carried in the discount and premium accounts with respect to such securities.** 18.5-6 Book value of securities owned. The accounting company is allowed the option of carrying its investment in securities, other than those issued or assumed by it, either at cost or at a reasonable valuation other than cost.** 18.5-7 Contingent assets and liabilities. Contingent assets and liabilities shall not be included in the body of the balance-sheet statement, but should be shown in detail in a supplementary statement accompanying the balance-sheet statement. Contingent assets are those without value to the accounting company until the fulfilment of conditions regarded as uncertain. Contingent liabilities include items which may, under certain conditions, become obliga *For statutory citation, see note to § 18.00-1. Page 433 tions of the company, but are neither direct nor assumed obligations on the date of the balance sheet.*† 18.5-8 Balance sheet accounts defined. The term balance-sheet accounts is used to designate those titles under which the ledger accounts are combined and summarized to show the assets, liabilities, and corporate surplus or deficit of the business.* [Introductory paragraph, p. 75, Uniform system of accounts for express companies (general balance sheet accounts), ICC, May 28, 1914] GENERAL BALANCE SHEET ACCOUNTS 18.500 Form of general balance sheet statement. Investment: ASSET SIDE 501. Real property and equipment 502. Sinking funds— Total book assets at date (in short column). 503. Miscellaneous physical property. 504. Investments in affiliated companies (a) Stocks. (b) Bonds. (c) Notes. (d) Advances. 505. Other investments 507. Special deposits. 508. Loans and notes receivable. 509. Traffic balances receivable. 510. Net balances receivable from agents and messengers. 511. Miscellaneous accounts receivable. 512. Material and supplies. 513. Interest, dividends, and rents receivable. 514. Working fund advances. 515. Other current assets. Total current assets. Deferred assets: 516. Insurance and other reserve funds Total book assets at date (in short column). 517. Provident funds Total book assets at date (in short column). 518. Fidelity and indemnity funds Total book assets at date (in short column). Other assets at date (in long column). 519. Advance payments on contracts. 520. Other deferred assets. Total deferred assets. Page 434 *For statutory citation, see note to § 18.00-1. Unadjusted debits: 521. Rents and insurance premiums paid in advance. 522. Taxes paid in advance. 523. Discount on capital stock. 524. Discount on funded debt. 525. Other unadjusted debits. 526. Securities issued or assumed-Unpledged (in short column only). 527. Securities issued or assumed-Pledged (in short column only). Total unadjusted debits. Stock: LIABILITY SIDE 528. Capital stock Book liability at date (in short column). Held by or for carrier at date (in short column). 529. Premium on capital stock. Total stock liabilities. Long-term debt: 530. Funded debt unmatured— Book liability at date (in short column). Held by or for carrier at date (in short column). Current liabilities: 531. Loans and notes payable. 532. Traffic balances payable. 533. Audited accounts and wages unpaid. 534. Miscellaneous accounts payable. 535. Matured interest, dividends, and rents unpaid. 536. Matured funded debt unpaid. 537. Miscellaneous advances payable. 538. Unpaid money orders, checks, and drafts. 539. Express privilege liabilities. 540. Estimated tax liability. 541. Unmatured interest, dividends, and rents payable. 542. Other current liabilities. Total current liabilities. Deferred liabilities: 543. Liability on account of provident funds. 544. Liability on account of fidelity and indemnity funds. 545. Other deferred liabilities. Total deferred liabilities. Unadjusted credits: 546. Premium on funded debt. 547. Operating and insurance reserves. 548. Accrued depreciation-Buildings. 549. Accrued depreciation-Equipment. 550. Accrued depreciation-Miscellaneous physical property. 551. Other unadjusted credits. Total unadjusted credits. Corporate surplus: * 552. Additions to property through income and surplus. 553. Reserves from income and surplus. Total appropriated surplus. 554. Profit and loss balance. Total corporate surplus. [Form of general balance sheet statement, p. 88, Uniform system of accounts for express companies, ICC, May 28, 1914] DEBITS 18.501 Real property and equipment. This account shall include the balances carried showing the cost or ledger value of the invest *For statutory citation, see note to § 18.00-1. Page 435 ment in real property and equipment devoted to the operations of the accounting company.** tIn §§ 18.501 to 18.554, inclusive, the numbers to the right of the decimal point correspond with the respective account numbers in Uniform system of accounts for express companies (general balance sheet accounts), Interstate Commerce Commission, May 28, 1914. The amendment of Mar. 15, 1938, is noted in brackets following section affected. Cross references to accounts are made by citing the account number, e. g., account No. 501, instead of the corresponding section number (§ 18.501). 18.502 Sinking funds. This account shall include the amount of cash, the ledger value of securities of other companies, other assets in the hands of trustees of sinking and other funds for the purpose of redeeming outstanding obligations; also amounts deposited with such trustees on account of mortgaged property sold, when the proceeds of sale are to be held for the redemption of securities, and the par value of securities issued or assumed by the accounting company held in such funds. A separate account shall be provided for each fund. The amounts included in this account shall be divided so as to show (a) the par value of the securities issued or assumed by the accounting company and (b) the amount in cash and the ledger value of securities of other companies.** NOTE: In stating the balance sheet in the annual reports to the Commission the total amount of the funds and the par value of securities issued or assumed by the accounting company and held in the funds shall be shown in the short columns, and the net amount of the funds (total amount less securities issued or assumed shall be shown in the long column. 18.503 Miscellaneous physical property. This account shall include the accounting company's investments in physical property other than investments properly classifiable in account No. 501. ITEMS OF INVESTMENT Buildings held for rent. Lands and other property acquired and Coal and other mines. held in anticipation of future use. Lands and buildings not used in trans- Manufacturing plants. portation operations. Mineral and timber lands. 18.504 Investments in affiliated companies. This account shall include the ledger value of the accounting company'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 funds. This account shall be subdivided as follows: (a) Stocks. (b) Bonds. (c) Notes, including herein not only notes that run longer than 1 year, but also notes payable on demand or within 1 year from the date of issue when it is mutually understood and intended that the notes shall not be enforced as current assets, also all notes held as investments. (d) Advances. The accounting company's records shall be kept in such manner that the ledger value of securities pledged as collateral security for Page 436 *For statutory citation, see note to § 18.00-1. any of the accounting company's funded debt or short-term loans or deposited for purposes enumerated in account No. 507, "Special deposits," and the ledger value of securities unpledged may be shown separately in the annual report to the Commission.** NOTE A: Accounts with affiliated companies which are subject to current settlements, such as charges for materials 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 term affiliated companies includes: (1) Controlled companies, including companies solely controlled by the accounting company, and also companies jointly controlled by the accounting company and others under a joint arrangement. (2) Controlling companies, including both companies solely controlling the accounting company and companies which jointly control the accounting company under a joint arrangement. (3) Companies controlled by controlled companies. By control is meant the ability to determine the action of a corporation. Joint control is that which rests in two or more corporations and which is held under a joint arrangement. NOTE C: The value of securities borrowed by the accounting company and pledged shall not be included in this account. NOTE D: The value of securities held in special funds shall be included in account No. 502, "Sinking funds," No. 516, "Insurance and other reserve funds," No. 517, "Provident funds," or No. 518, "Fidelity and indemnity funds," as may be appropriate. 18.505 Other investments. This account shall include the ledger value of the accounting company's investment advances to nonaffiliated companies; also its investment in securities issued or assumed by such companies, such securities not being held in special funds. This account shall be subdivided as follows: (a) Stocks. (b) Bonds. (c) Notes, including herein not only notes that run longer than 1 year, but also notes payable on demand or within 1 year from date of issue when it is mutually understood and intended that the notes shall not be enforced as current assets; also all notes held as investments. (d) Advances. The accounting company's records shall be kept in such manner that the ledger value of securities pledged as collateral security for any of the accounting company's funded debt or short-term loans or deposited for purposes enumerated in account No. 507, "Special deposits," and the ledger value of securities unpledged may be shown separately in the annual report to the Commission.*t NOTE A: Accounts with nonaffiliated companies which are subject to current settlements, such as charges for materials 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 term nonaffiliated companies includes all companies other than those defined as affiliated in Note B of account No. 504. NOTE C: The value of securities borrowed by the accounting company and pledged shall not be included in this account. NOTE D: The value of securities held in special funds shall be included in account No. 502, "Sinking funds," No. 516, "Insurance and other reserve funds," *For statutory citation, see note to § 18.00-1. Page 437 |
