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Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.722 722 Other investments and advances

Current as of January 02, 2025 | Updated by Findlaw Staff

(a) This account shall include the ledger value of the accounting company's investment in securities issued or assumed by nonaffiliated companies other than securities held in special deposits or special funds;  and also investment advances made to nonaffiliated companies not subject to current settlement;  notes receivable from nonaffiliated companies which mature later than 1 year from date of the balance sheet;  and similar noncurrent items of nonaffiliated companies. This account shall also include unrealized holding gains and losses on trading and available-for-sale types of security investments. Include also the offsetting entry to the recording of amortization of discount or premium on interest bearing investments.

(b) This account shall be maintained in such manner as to show each of the following classes of investment in each nonaffiliated company:

(1) Stocks.

(2) Bonds.

(3) Other secured obligations.

(4) Unsecured notes.

(5) Investment advances.

(c) A complete record of securities pledged shall be maintained to show separately the ledger value of securities pledged and unpledged in the annual report to the Board.

Note A:  Accounts with nonaffiliated companies which are subject to current settlement, if their collection is reasonably assured, shall be classed as current assets, and if settlement is deferred beyond one year such items shall be transferred to account 741, “Other assets.”

Note B:  The term nonaffiliated companies includes all companies other than those defined as affiliated in note B of account 721, “Investments and advances:  Affiliated companies.”

Note C:  The value of securities borrowed by the accounting company and pledged shall not be included in this account. A memorandum record shall be kept.

Note D:  The value of securities pledged for purposes other than that of security for funded debt or short-term loans shall be included in accounts 715, “Sinking funds,” 716, “Capital funds,” or 717, “Other funds,” as appropriate.

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Cite this article: FindLaw.com - Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.722 722 Other investments and advances - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-49-transportation/cfr-sect-49-1201-722/

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