Code of Federal Regulations Title 49. Transportation 49 CFR § 1201.783 783 Deferred revenues—transfers from government authorities

This account shall include amounts representing the cost of acquisition, addition to, or improvement of depreciable operating property received, or receivable from Federal, state, or local authorities. Items to be included in this account shall be determined in accordance with instruction 1–15.

An appropriate record shall be maintained of each asset associated with these transfers showing:  (1) Original cost to carrier (or fair value if not purchased), (2) accumulated depreciation, and (3) estimated salvage value, if any.

This account shall be charged periodically, and account 503, “Railway Operating Revenues—Amortization of Deferred Transfers from Government Authorities,” shall be credited with amounts equal to the depreciation costs of the assets to which they apply. When such assets are retired or otherwise disposed of, this account shall be charged, and account 503 concurrently credited with any remaining associated amounts. (See instruction 1–15.)

Note A:  This account shall not include government transfers in the form of, or designated for the purchase of land or other non-depreciable property. Transfers of this type are includible in account 795, “Other Capital.”

Note B:  This account shall not include transfers from the Federal Government to either Amtrak or ConRail representing the cost of depreciable and non-depreciable operating property.

(Authority:  49 U.S.C. 304, 320)