§ 32.4200   Long term debt and funded debt.

   (a) This account shall include:

   (1) The total face amount of unmatured debt maturing more than one year
   from date of issue, issued by the company and not retired, and the
   total face amount of similar unmatured debt of other companies, the
   payment of which has been assumed by the company, including funded debt
   the maturity of which has been extended by specific agreement. This
   account shall also include such items as mortgage bonds, collateral
   trust bonds, income bonds, convertible debt, debt securities with
   detachable warrants and other similar obligations maturing more than
   one year from date of issue.

   (2) The premium associated with all classes of long-term debt. Premium,
   as applied to securities issued or assumed by the company, means the
   excess of the current money value received at their sale over the sum
   of their book or face amount and interest or dividends accrued at the
   date of the sale.

   (3) The discount associated with all classes of long-term debt.
   Discount, as applied to securities issued or assumed by the company,
   means the excess of the book or face amount of the securities plus
   interest or dividends accrued at the date of the sale over the current
   money value of the consideration received at their sale.

   (4) The face amount of debt reacquired prior to maturity that has not
   been retired. Gain or loss shall be recognized at the time of
   reacquisition by credits or charges to Account 7300, Nonoperating
   income and expense, except that material gains or losses shall be
   treated as extraordinary. (See Account 7600, Extraordinary items.)

   (5) The noncurrent portion of obligations applicable to property
   obtained under capital leases. Amounts subject to current settlement
   shall be included in Account 4130, Other current liabilities.

   (6) The amount of advance from affiliated companies. Amounts due
   affiliated companies which are subject to current settlement shall be
   included in Account 4000.

   (7) Investment advances, including those represented by notes.

   (8) Long-term debt not provided for elsewhere.

   (b) Subsidiary records shall be maintained for each issue. The
   subsidiary records shall identify the premium or discount attributable
   to each issue.

   (c) Premiums and discounts on long-term debt recorded in this account
   shall be amortized monthly by the interest method and charged or
   credited, as appropriate, to Account 7500, Interest and related items.

   (d) Debt securities with detachable warrants shall be accounted for in
   accordance with generally accepted accounting principles.

   (e) Securities maturing in one year or less, including securities
   maturing serially, shall be included in Account 4130, Other current
   liabilities.

   [ 67 FR 5689 , Feb. 6, 2002]

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