paper. The third, fourth, and fifth sheets are of green opaque paper and the sixth, seventh, and eighth are of buff opaque paper. The data columns of the first sheet of certain schedules are separated by perforations to permit disassembly for clipboard statistical processing. The remaining sheets are unperforated and are of a format which permits filing within binders designed for standard 81⁄2" x 14" sheets. The four copies of each schedule filed with the Civil Aeronautics Board shall consist of the original white sheet and the three green sheets. (f) Wherever practicable the sheets have been designed to permit machine tabulation. Upon approval by the Civil Aeronautics Board, the carrier may supply its own continuous-feed forms provided each schedule conforms with the specifications of the forms prescribed herein. (g) A good quality black ribbon shall be used in preparing the original copy of each schedule submitted to the Civil Aeronautics Board. In no event shall ditto or similar processes be used nor shall any information be typed on the reverse side of copies submitted to the Civil Aeronautics Board. (h) [Reserved] (i) Four separate entities shall be established for the purpose of submitting the reports hereinafter prescribed. They are as follows: (1) Domestic operations; (2) operations via the Atlantic Ocean; (3) operations via the Pacific Ocean; and (4) operations within the Latin American areas. With respect to the first classification, the domestic entity shall embrace all operations within the 50 States of the United States and the District of Columbia, and shall also include Canadian transborder operations. The reports to be submitted by each entity shall be comparable to those required of a distinct legal entity whether the reporting entity constitutes such an entity, a semiautonomous physically separated operating division of the air carrier, or an entity established for reporting purposes only. The entities for which separate reports shall be made by the different air carriers are set forth below in the list entitled Route Air Carrier Reporting Entities. (j) As a general rule separate reports shall be filed for the air carrier and any associated company air carriers as defined in section 03. However, transactions of associated companies in which 100 percent equity control resides in the reporting air carrier shall be consolidated with transactions of the reporting air carrier when such associated companies perform services related to the transport operations of the reporting air carrier almost exclusively and are not engaged in air transportation for their own account. (k) Generally, nonscheduled services shall be treated as an integral part of the reporting entity to which most closely related without regard to the geographic area in which such nonscheduled services may actually be performed. However, supplemental reports shall be made of nonscheduled services (including services for the Department of Defense) in areas not encompassed by the prescribed reporting entity in any month in which the available ton-miles of such nonscheduled services exceed 5 percent of the total available ton-miles of the reporting entity. Such supplemental reports shall continue until waived by the Board upon a showing that such nonscheduled operations will not in the subsequent 12-month period exceed the 5-percent limit. The supplemental reports to be filed each month or calendar quarter, as applicable, shall be comprised of report schedules D-1, P-5, T-1, and T-2. Transport and nontransport revenues pertaining to such separately reported nonscheduled services shall be reflected on schedule P-2 each quarter with appropriate cross-references inserted on schedules P-3 and P-4, as applicable. (1) When and as required in the national interest, any air carrier which performs nonscheduled transport services for the Department of Defense shall, when directed by the Board, make separate reports for such services as if they were conducted by a physically separated transport entity. Such reports shall consist of schedules P-1 through P-9, T-1, and T-2. The letter "D" shall be inserted on such reports, following the schedule number of each P and T schedule. Where a carrier has more than one reporting entity, nonscheduled transport and nonscheduled Defense services shall be assigned to the reporting entity to which more closely related. [ER-327, 26 F.R. 4222, May 16, 1961, as amended by ER-369. 27 FR. 12819, Dec. 28. 1962; ER-483, 32 F.R. 2811, Feb. 11, 1967; ER-586, 34 F.R. 14591, Sept. 19, 1969; ER-597, 34 F.R. 19751, Dec. 17, 1969; ER-604, 35 F.R. 2821, Feb. 11, 1970] Section 22-General Reporting (a) The CAB Form 41 report is comprised of schedules to be filed at the frequency indicated below. Four copies of each schedule shall be filed with the Civil Aeronautics Board and shall be received, or postmarked, on or before expiration of the indicated interval subsequent to the period for which the report is being made. P-2(a) Revenue Market Report.... Quarterly. 40 P-3.. Transport revenues; depreciation and amortization; nonoperating Quarterly. 40 P-3(a). Income taxes.... do.. 40 40 P-4.... P-5.1. P-8........ Aircraft and Traffic Servicing, and Promotion and Sales Expense P-9.2.... Distribution of Ground Servicing Expenses by Geographic Loca- Incidental Revenues-Net; Explanation of Special Items; Ex- Distribution of Ground Servicing Expenses by Geographic Loca- .do.. ..do..... P-10. Payroll... do. P-41. Taxes. Annually. G-43...... Compensation and Expenses of Persons and Firms (Other than do................. 00 90 1 In accordance with the provisions of §§ 235.4 and 235.5 of Part 235 of tnis subchapter. * Interval relates to receipt by the Board in Washington, D.C., rather than postmark for these schedules. (b) Each air carrier shall file the schedules of the CAB Form 41 reports with the Civil Aeronautics Board in accordance with the above instructions, except that B and P report schedules for the final quarter of each calendar year may be extended to 90 days following the year's end: Provided, that preliminary schedules B-1, P-1.1, or P-1.2, P-3, and P-3(a) are submitted within the standard prescribed 40-day filing period. At the request of an air carrier, and upon a showing by such air carrier that public disclosure of its preliminary yearend report would adversely affect its interests and would not be in the public interest, the Board will withhold such preliminary yearend report from public disclosure until such time as (1) the final report is filed, (2) the final report is due, or (3) information covered by the preliminary 50-031-71-16 report is publicly released by the carrier concerned, whichever first occurs. (c) If circumstances prevent the filing of a report within the prescribed time limit, consideration will be given to the granting of an extension upon receipt of a written request therefor. Such a request must set forth good and sufficient reason to justify granting the extension, must set forth the date when the report can be filed, and be submitted sufficiently in advance of the due date to permit proper time for consideration and communication to the air carrier of the action taken. Except in cases of emergency no such request will be entertained which is not postmarked in sufficient time to normally reach the Civil Aeronautics Board at least 24 hours before the prescribed due date. If a request is denied, the air carrier remains subject to the filing requirements to the same extent as if no request for extension of time had been made. (d) Statements of accounting or statistical procedures required to be filed under this system of accounts and reports are recapitulated below. These statements or revisions thereof shall be filed prior to the date on which the procedures are to become effective and shall be regarded as accepted unless the carrier is notified of Board objections within 30 days after receipt. The Board may require modification of any previously effective procedure covered by such statements after 60-days' notice to the carrier. These statements shall be filed in triplicate, with each statement submitted on a separate page to facilitate processing and filing. (1) Procedures for assigning or prorating profit and loss items between operating entities, as prescribed by section 2-1(b). (2) Procedures for retroactive adjustments made to conform accounts with mail rate actions, as required by section 2-4(d). (3) Procedures for accrual of selfinsurance reserves, as prescribed by section 2-13(c). (4) Procedures for establishment of expense equalization reserves, as prescribed by section 2-13(d). (5) Procedures for depreciation of property and equipment, as prescribed by section 2-14(b). (6) Procedures of accounting for airframe and aircraft engine overhauls and airworthiness reserves as prescribed by section 5-4(g) (8). (7) Procedures for amortization of developmental and preoperating costs and other intangibles, as prescribed by section 5-5(b), section 6-1870 (c), and section 6-1880. (8) Procedures for the accrual of obsolescence and deterioration reserves for flight equipment expendable parts, as required by section 6-1311(d). (9) Procedures for accrual of unearned transportation revenues, as prescribed by sections 2-17(b) and 6-2160 (d). (10) Procedures for assigning or prorating expenses between incidental services and transport operations, as prescribed by section 9-4600(d). (11) Procedures for applying maintenance burden, as prescribed by section 10-5300 (c), section 11-5300 (c) and section 24, Schedule P-6, paragraph (f). (12) Procedures for computing available seat-miles and available ton-miles for each aircraft type, as required by paragraph (g), in section 25, Schedule T-3. (13) Procedures for the accrual of vacation liability, as required by Section 6-2120(c). (14) Procedures for accounting for investments in subsidiary and other associated companies, including change in status from associated to subsidiary company, or vice versa, and adjustments in investment accounts, as prescribed by section 6-1510(c). (e) All financial data reported on B, P, and G schedules shall reflect the status of the air carrier's books of account for the period for which report is being made and shall conform to the instructions of this Uniform System of Accounts and Reports. At the option of the air carrier financial data may be reported in thousands of dollars by Group III air carriers, and in whole dollars by Group I and Group II air carriers, by either dropping or rounding the hundreds of dollars and the cents respectively, provided all amounts are balanced within and between schedules and zero digits are inserted for the actual money amounts eliminated. (f) Traffic and other operational statistics included in schedules of the CAB Form 41 reports shall reflect data pertaining to the month, quarter or 12months-to-date period for which the report is being made. (g) Adjustments correcting errors in previously reported traffic and other operational statistics shall not be included in data reported in schedules for the current period but shall be effected by submission of corrected schedules for the period to which applicable or, if only a few items are involved, by written notice and authorization to the Civil Aeronautics Board to correct previously filed reports except that any correction which amounts to less than one-half of one percent (0.5%) of the corrected amount for the month to which related may be included in the report for the current month provided the amount of the correction is clearly noted on the Form 41 Report. (h) All letters and statements of correction or revision of reported data shall be a part of the CAB Form 41 reports. (1) All changes in accounting methods having a material impact upon the particular financial elements involved, and all changes in methods of computing and reporting traffic and capacity statistics having a material impact upon the particular statistic involved shall be adequately explained and identified in the report first reflecting such changes. Such explanations related to financial position or financial results shall be made on schedules B-2 and P-2-Notes to Balance Sheet and Notes to Income Statement, respectively. Changes in methods for computing or reporting traffic and capacity statistics shall be identified and explained on a separate sheet attached to the first report affected. (See sec. 2-16.) The reporting requirements shall not be construed, in any sense, as relieving the air carrier of the responsibility for conforming its procedures to those otherwise prescribed in this system of accounts and reports. [ER-327, 26 FR. 4222, May 16, 1961, as amended by ER-417, 29 F.R. 13530, Oct. 1, 1964; 29 F.R. 14105, Oct. 14, 1964; ER-435. 30 F.R. 7704, June 15, 1965; ER-437, 30 F.R. 8830, July 14, 1965; ER-447, 30 F.R. 14197, Nov. 11, 1965; ER-483, 32 F.R. 2811, Feb. 11, 1967; ER-518, 32 F.R. 18023, Dec. 16, 1967; ER-526, 33 F.R. 849, Jan. 24, 1968; ER-527, 33 F.R. 2710, Feb. 8, 1968; ER-546, 33 F.R. 18697, Dec. 18, 1968; ER-562, 34 F.R. 3741, Mar. 4, 1969; ER-586, 34 F.R. 14591, Sept. 19, 1969; ER-597, 34 F.R. 19751, Dec. 17, 1969; ER-604, 35 F.R. 2821, Feb. 11, 1970] Section 23-Certification and Balance Sheet Elements Schedule A-Certification (a) The certification of the CAB Form 41 report shall be signed by an elective corporate officer, executive or director, or such other person as may be authorized by the carrier to sign the certification provided a written authorization disclosing the individual's name and title is forwarded to the Civil Aeronautics Board. Since corrections or revisions of reported data are a part of the CAB Form 41 report, all correspondence relating to such matters shall be signed only by persons authorized to sign the certification. (b) The certification of the Form 41 reports, embodied in Schedule A thereof, shall read as follows: I, the undersigned...---- (Title of officer in charge of accounts) of the__. (Full name of the reporting company) do certify that this report and all schedules and supporting documents which are submitted herewith or have been submitted heretofore as parts of this report filed for the above indicated period have been prepared under my direction; that I have carefully examined them and declare that they correctly reflect the accounts and records of the company, and to the best of my knowledge and belief are a complete and accurate statement, after adjustments to reflect full accruals, of the operating revenues and expenses, income items, assets, liabilities, capital, surplus, and operating statistics for the periods reported in the several schedules; that the various items herein reported were determined in accordance with the Uniform System of Accounts and Reports for Certificated Air Carriers prescribed by the Civil Aeronautics Board; and that the data contained herein are reported on a basis consistent with that of the preceding report except as specifically noted in explanations accompanying the financial and statistical statements. Schedule A-1-Status of Accounting Plans Required To Be Filed (a) This schedule shall be filed by all route carriers. (b) This schedule shall be filed for the overall or system operations of the air carrier. (c) The indicated data shall be entered on this schedule for each accounting plan listed in section 22(d). (d) Columns 1 and 2 shall reflect the title of the accounting plan and its applicable section under this Uniform System of Accounts and Reports. (e) Column 3 shall indicate for each plan, by insertion of either "Yes" or "No", whether the plan was revised this period. (f) Columns 4 and 5 shall reflect for each plan the date filed with the Board and its effective date. Schedule B-1 Balance Sheet (a) This schedule shall be filed by all route air carriers. (b) This schedule shall reflect the balances as at the close of business on the last day of each calendar quarter, for the overall or system operations of each air carrier in conformance with the provisions of sections 4, 5, and 6. (c) Individual proprietors or partners shall report the aggregate capital contributed by the proprietor or partners in account 2890 Other Paid-In Capital. |