§ 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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