[Code of Federal Regulations]
[Title 47, Volume 2]
[Revised as of October 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR32.1410]

[Page 405-406]
 
                       TITLE 47--TELECOMMUNICATION
 
                    CHAPTER I--FEDERAL COMMUNICATIONS
                         COMMISSION (CONTINUED)
 
PART 32--UNIFORM SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS COMPANIES--Table of Contents
 
           Subpart C--Instructions for Balance Sheet Accounts
 
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

[[Page 406]]

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]