Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.546 546 Interest on funded debt

This account shall include the current accruals of interest on all classes of long-term debt, the principal of which is includable in accounts 765, Funded debt unmatured;  766, Equipment obligations;  767, Receivers' and trustees' securities;  768, Debt in default;  and 769, Accounts Payable;  affiliated companies.

Note A:  This account shall not include charges for interest on funded debt obligations issued or assumed by the accounting company and owned by it, whether pledged as collateral or held in its treasury, in special deposits, or in sinking or other funds.

Note B:  When funded debt is incurred for new lines or extensions, or for addition and betterment purposes, the accruals of interest on such funded debt (less interest received on unexpended balances), to the date of completion or coming into service of the property so acquired shall be includable in the road and equipment accounts.

Note C:  This account shall be maintained so as to show separately:  (a) Fixed interest which will be paid, or for which provision for payment will be made, when the interest matures;  (b) interest in default;  and (c) contingent interest determined to be payable.