Sec.  32.1410   Other noncurrent assets.

   (a) This account shall include the acquisition cost of the company's
   investment in equity or other securities issued or assumed by affiliated
   companies, including securities held in special funds (sinking funds). The
   carrying value of the investment (securities) accounted for on the equity
   method shall be adjusted to recognize the company's share of the earnings or
   losses and dividends received or receivable of the affiliated company from
   the date of acquisition. (Note also Account 1170, Receivables, and Account
   7300, Nonoperating income and expense.)

   (b) This account shall include the acquisition cost of the Company's
   investment in securities issued or assumed by nonaffiliated companies and
   individuals, and also its investment advances to such parties and special
   deposits of cash for more than one year from date of deposit.

   (c) Declines in value of investments, including those accounted for under
   the cost method, shall be charged to Account 4540, Other capital, if
   temporary and as a current period loss if permanent. Detail records shall be
   maintained to reflect unrealized losses for each investment.

   (d) This account shall also include advances represented by book accounts
   only with respect to which it is agreed or intended that they shall be
   either settled by issuance of capital stock or debt; or shall not be subject
   to current cost settlement.

   (e) Amounts due from affiliated and nonaffiliated companies which are
   subject to current settlement shall be included in Account 1170,
   Receivables.

   (f) This account shall include the total unamortized balance of debt
   issuance expense for all classes of outstanding long-term debt. Amounts
   included in this account shall be amortized monthly and charged to account
   7500, Interest and related items.

   (g) Debt Issuance expense includes all expenses in connection with the
   issuance and sale of evidence of debt, such as fees for drafting mortgages
   and trust deeds; fees and taxes for issuing or recording evidences of debt;
   costs of engraving and printing bonds, certificates of indebtedness, and
   other commercial paper; fees paid trustees; specific costs of obtaining
   governmental authority; fees for legal services; fees and commissions paid
   underwriters, brokers, and salesmen; fees and expenses of listing on
   exchanges, and other like costs. A subsidiary record shall be kept of each
   issue outstanding.

   (h) This account shall include the amount of cash and other assets which are
   held by trustees or by the company's treasurer in a distinct fund, for the
   purpose of redeeming outstanding obligations. Interest or other income
   arising from funds carried in this account shall generally be charged to
   this account. A subsidiary record shall be kept for each sinking fund which
   shall designate the obligation in support of which the fund was created.

   (i) This account shall include the amount of all noncurrent assets which are
   not includable in paragraphs (a) through (h) of this section.

   (j) A subsidiary record shall be kept identifying separately common stocks,
   preferred stocks, long-term debt, advances to affiliates, and investment
   advances. A subsidiary record shall also be kept identifying special
   deposits of cash for more than one year from the date of deposit. Further,
   the company's record shall identify the securities pledged as collateral for
   any of the company's long-term debt or short-term loans or to secure
   performance of contracts.

   (k) Subsidiary record categories shall be maintained in order that the
   entity may separately report the amounts contained herein that relate to the
   equity method and the cost method. Such subsidiary record categories shall
   be reported as required by part 43 of this chapter.

   [ 67 FR 5682 , Feb. 6, 2002]