[Code of Federal Regulations]
[Title 17, Volume 2]
[Revised as of April 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR210.5-03]

[Page 267-268]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER II--SECURITIES AND EXCHANGE COMMISSION
 
PART 210--FORM AND CONTENT OF AND REQUIREMENTS FOR FINANCIAL STATEMENTS,
 
Sec. 210.5-03  Income statements.

    (a) The purpose of this rule is to indicate the various line items 
which, if applicable, and except as otherwise permitted by the 
Commission, should appear on the face of the income statements filed for 
the persons to whom this article pertains (see Sec. 210.4-01(a)).
    (b) If income is derived from more than one of the subcaptions 
described under Sec. 210.5-03.1, each class which is not more than 10 
percent of the sum of the items may be combined with another class. If 
these items are combined, related costs and expenses as described under 
Sec. 210.5-03.2 shall be combined in the same manner.

    1. Net sales and gross revenues. State separately:
    (a) Net sales of tangible products (gross sales less discounts, 
returns and allowances), (b) operating revenues of public utilities or 
others; (c) income from rentals; (d) revenues from services; and (e) 
other revenues. Amounts earned from transactions with related parties 
shall be disclosed as required under Sec. 210.4-08(k). A public utility 
company using a uniform system of accounts or a form for annual report 
prescribed by federal or state authorities, or a similar system or 
report, shall follow the the general segregation of operating revenues 
and operating expenses reported under Sec. 210.5-03.2 prescribed by such 
system or report. If the total of sales and revenues reported under this 
caption includes excise taxes in an amount equal to 1 percent or more of 
such total, the amount of such excise taxes shall be shown on the face 
of the statement parenthetically or othewise.
    2. Costs and expenses applicable to sales and revenues.
    State separately the amount of (a) cost of tangible goods sold, (b) 
operating expenses of public utilities or others, (c) expenses 
applicable to rental income, (d) cost of services, and (e) expenses 
applicable to other revenues. Merchandising organizations, both 
wholesale and retail, may include occupancy and buying costs under 
caption 2(a). Amounts of costs and expenses incurred from transactions 
with related parties shall be disclosed as required under Sec. 210.4-
08(k).
    3. Other operating costs and expenses. State separately any material 
amounts not included under caption 2 above.
    4. Selling, general and administrative expenses.
    5. Provision for doubtful accounts and notes.
    6. Other general expenses. Include items not normally included in 
caption 4 above. State separately any material item.
    7. Non-operating income.
    State separately in the income statement or in a note thereto 
amounts earned from (a) dividends, (b) interest on securities, (c) 
profits on securities (net of losses), and (d) miscellaneous other 
income. Amounts earned from transactions in securities of related 
parties shall be disclosed as required under Sec. 210.4-08(k). Material 
amounts included under miscellaneous other income shall be separately 
stated in the income statement or in a note thereto, indicating clearly 
the nature of the transactions out of which the items arose.
    8. Interest and amortization of debt discount and expense.
    9. Non-operating expenses.
    State separately in the income statement or in a note thereto 
amounts of (a) losses on securities (net of profits) and (b) 
miscellaneous income deductions. Material amounts included under 
miscellaneous income deductions shall be separately stated in the income 
statement or in a note thereto, indicating clearly the nature of the 
transactions out of which the items arose.
    10. Income or loss before income tax expense and appropriate items 
below.

[[Page 268]]

    11. Income tax expense. Include under this caption only taxes based 
on income (see Sec. 210.4-08(h)).
    12. Minority interest in income of consolidated subsidiaries.
    13. Equity in earnings of unconsolidated subsidiaries and 50 percent 
or less owned persons. State, parenthetically or in a note, the amount 
of dividends received from such persons. If justified by the 
circumstances, this item may be presented in a different position and a 
different manner (see Sec. 210.4-01(a)).
    14. Income or loss from continuing operations.
    15. Discontinued operations.
    16. Income or loss before extraordinary items and cumulative effects 
of changes in accounting principles.
    17. Extraordinary items, less applicable tax.
    18. Cumulative effects of changes in accounting principles.
    19. Net income or loss.
    20. Earnings per share data.

[45 FR 63671, Sept. 25, 1980, as amended at 45 FR 76977, Nov. 21, 1980; 
50 FR 25215, June 18, 1985]