§  32.4350   Net noncurrent deferred nonoperating income taxes.

   (a) This account shall include the balance of income tax expense
   (Federal, state, and local) that has been deferred to later periods as
   a result of comprehensive interperiod allocation related to
   nonoperating differences.

   (b) This account shall be credited or debited, as appropriate, and
   Account 7400, Nonoperating Taxes, shall reflect the offset for the tax
   effect of revenues from other operations and extraordinary items and
   nonoperating expenses which have been included in the determination of
   taxable income, but which will not be included in the determination of
   book income or for the tax effect of nonoperating expenses and
   extraordinary items and nonoperating income which have been included in
   the determination of book income prior to the inclusion in the
   determination of taxable income.

   (c) As other assets or liabilities which generated the prepaid income
   tax or deferred income tax are reclassified from long-term or
   non-current status to current status, the appropriate deferred income
   tax shall be reclassified from this account to account 4110, Net
   Current Deferred Nonoperating Income Taxes.

   (d) This account shall also include the balance of the income tax
   effect (Federal, State and local) related to noncurrent extraordinary
   items which have been included in the determination of taxable income
   in a period different from when it is included in the determination of
   book income, that is, more than one year.

   (e) This account shall be charged or credited with the contra amount
   recorded to Account 7600, Extraordinary items, in accordance with
   §  32.22.

   (f) As the extraordinary item which generated the deferred income tax
   becomes current, the appropriate deferred income tax shall be
   reclassified from this account to Account 4110, Net Current Deferred
   Nonoperating Income Taxes.

   (g) The classification of deferred income taxes as current or
   noncurrent shall follow the classification of the asset or liability
   that gave rise to the deferred income tax. If there is no related asset
   or liability, classification shall be based on the expected turnaround
   of the temporary difference.

   (h) Subsidiary record categories shall be maintained in order that the
   company may separately report the amounts contained herein that are
   property related and those that are nonproperty related. Such
   subsidiary record categories shall be reported as required by part 43
   of this Commission's Rules and Regulations.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  59 FR 9419 , Feb. 28, 1994;  67 FR 5690 , Feb. 6, 2002]

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