75.3 GROUP II AND GROUP III AIR CARRIERS Depreciation-Airframe Parts. Record here provisions for depreciation of spare airframe instruments and parts carried in balance sheet subaccount 1608.1 Airframe Parts and Assemblies. 75.4 Depreciation-Aircraft Engine Parts. Record here provisions for depreciation of spare aircraft engine instruments and parts carried in balance sheet subaccount 1608.5 Aircraft Engine Parts and Assemblies. ALI. AIR CARRIER GROUPS 75.5 Depreciation-Other Flight Equipment. Record here provisions for depreciation of property and equipment and parts carried in balance sheet accounts 1603 Aircraft Propellers, 1604 Aircraft Communications and Navigational Equipment 1606 Miscellaneous Flight Equipment, 1607 Improvements to Leased Flight Equipment (exclusive of capi talized overhauls of leased flight equipment for which airworthiness reserves are maintained) and balance sheet subaccount 1608.9 Other Parts and Assemblies. Group I air carriers shall also include in this subaccount provisions for depreciation of property carried in balance sheet account 1608 Flight Equipment Rotable Parts and Assemblies. 75.6 Depreciation-Flight Equipment. This classification is established only for purposes of control by the Civil Aeronautics Board and shall include all charges to operating expenses for depreciation of flight equipment of all types and classes. 75.8 Depreciation-Maintenance Equipment and Hangars. Record here provisions for depreciation of property and equipment carried in balance sheet account 1634, Maintenance and Engineering Equipment and balance sheet subaccount 1640.1 Maintenance Buildings and Improvements. 75.9 Depreciation General Ground Property. Record here provisions for depreciation of property and equipment carried in balance sheet accounts 1630 through 1640, other than account 1634, Maintenance and Engineering Equipment and subaccount 1640.1, Maintenance Buildings and Improvements. 77 Uncleared Expense Credits. (a) Record here credits to operating expenses, which have not been cleared to the objective accounts to which applicable. (b) Each air carrier shall credit, or charge as appropriate, the objective account prescribed for each expense element which may be involved in distribution of expenses between separate reporting entities or nontransport divisions of the air carrier. At the option of the air carrier, either the individual applicable objective accounts or this account may be credited with amounts capitalized, charged against incidental services, or otherwise assigned to other than separate operating entities of the air carrier provided the aggregate credits to this account in each function do not, for any accounting year, distort the individual objective accounts of the function to which related and all expense credits applicable to complete individual transactions are consistently credited either to this account or the individual objective accounts to which related. Each air carrier using this account shall establish such standard practices as may be prescribed by the Civil Aeronautics Board or, in the absence of such action by the Civil Aeronautics Board, such standard practices as will prevent credits to this account from significantly distorting the individual objective accounts of each function to which related. (c) This account shall not be credited with amounts applicable to objective accounts of the Flying Operations, Depreciation, and Direct Maintenance functions. Credits applicable to such functions shall be carried to the individual objective accounts to which applicable. (d) This account shall be subdivided as follows by all air carrier groups: 77.8 Uncleared Interchange Expense Credits. Record here credits to operating expenses, from operations performed for others under aircraft interchange agreements, which have not been cleared to the objective accounts to which applicable. 77.9 Other Uncleared Expense Credits. Record here credits to operating expenses, from other than operations under aircraft interchange agreements, which have not been cleared to the objective accounts to which applicable. This classification is established for purposes of control by the Civil Aeronautics Board and shall include all charges to operating expenses for maintenance of flight equipment of all types and classes. 79 Applied Burden Debit/Credit. (a) This classification is established only for purposes of control by the Civil Aeronautics Board and reporting on Form 41 by air carriers, and shall reflect all maintenance burden applied in accordance with the provisions of section 24, schedule P-5 of this system of accounts and reports. (b) This classification shall be subdivided as follows by all air carrier groups: 79.6 Applied Burden-Flight Equipment. 79.8 Applied Burden-General Ground Property. Section 14-Objective Classification-Nonoperating Income and Expense 80 Imputed Interest Capitalized. (a) Record here imputed interest capitalized pursuant to section 2-10 and charged to asset accounts. (b) This account shall be subdivided as follows by all air carrier groups: 80.1 Imputed Interest Capitalized Credit. Record here credits related to imputed interest capitalized and recorded in asset accounts. 80.2 Imputed Interest Deferred Debit. Record here debits related to imputed interest deferred in balance sheet account 2390 Other Deferred Credits. 80.3 Imputed Interest Deferred Credit. Record here periodic credits for imputed interest, cleared to this account as the amount of such interest in the asset accounts is written off. (80 Stat. 383, 5 U.S.C. 552) [ER 484, 32 F.R. 5368, Mar. 30, 1967] 81 Capital Gains and Losses. (a) Record here gains or losses on retirements of property and equipment, repair parts, supplies or materials, and investments in securities. This account shall not include gains or losses on debt securities issued by the air carrier which have been reacquired and cancelled or resold. Such gains or losses shall be recorded, as appropriate, in profit and loss account 88 Miscellaneous Nonoperating Credits or 89 Miscellaneous Nonoperating Debits. Gains or losses on reacquisition and retirement or resale of capital stock issued by the air carrier shall not be included in this account but in paid-in capital subaccount 2890.3 Other Capital Stock Transactions. Gains or losses from property carried in balance sheet account 1520 Advances to Nontransport Divisions shall be accounted for in books of nontransport divisions and treated by the air carrier as a part of quarterly profit and loss of nontransport divisions taken up through profit and loss account 86 Income from Nontransport Ventures. (b) This account shall be subdivided as follows by all air carrier groups: 81.1 Capital Gains and Losses-Operating Property. Record here gains or losses on retirements of operating property and equipment, flight equipment expendable parts, or miscellaneous materials and supplies sold or otherwise retired in connection with a general retirement program as opposed to incidental sales performed as a service to others. 81.2 Capital Gains and Losses-Other. Record here gains or losses on retirement of nonoperating property and equipment and investments in securities of others. 82 Unapplied Cash Discounts. Record here cash discounts on routine purchases of materials, repair parts or supplies. Cash discounts on classes of assets included in property and equipment accounts shall not be recorded in this account but shall be applied as a reduction of the cost of such assets. 83 Interest Income. (a) Record here interest income from all sources. This account shall include as an increase or reduction of interest received the proportionate amortization of any discount or premium on the purchase price of securities of others held by the air carrier. (b) This account shall not include interest on securities issued or assumed by the air carrier and subsequently reacquired. 84 Income from Subsidiary Companies and Dividend Income. (a) Record here income from the equity in net earnings or losses of subsidiary companies and income arising out of dividends declared on stocks of companies in which the air carrier owns 50 percent or less of the voting capital stock. Dividends on capital stock issued by the air carrier and subsequently reacquired shall not be included in this account. (b) This account shall be subdivided as follows by all carrier groups: [ER-546, 33 F.R. 18697, Dec. 18, 1968] 84.1 Income from Subsidiary Companies. Record here the equity in the current earnings or losses of subsidiary companies. Dividends declared on the stock of such companies shall not be included in this account as income, but shall be entered in balance sheet subaccount 1510.1 Investments in Subsidiary Companies, as a return of investment. The foregoing instructions shall not apply to investments in nontransport foreign subsidiary companies. [ER-546, 33 F.R. 18697, Dec. 18, 1968] 84.2 Dividend Income-Other than Subsidiary Companies. Record here income from dividends declared on stocks of companies in which the air carrier owns 50 percent or less of the voting capital stock. Dividends declared on stock of subsidiary companies shall not be included in this account, but shall be entered in balance sheet subaccount 1510.1 Investments in Subsidiary Companies. [ER-546, 33 F.R. 18697, Dec. 18, 1968] 85 Foreign Exchange Adjustments. Record here gains or losses from transactions involving currency conversions resulting from nonroutine, unusual changes in rates of foreign exchange in accordance with provisions of section 2-3. 86 Income from Nontransport Ventures. (a) Record here the gross revenues and expenses applicable to operations not reasonably considered as incidental to the commercial air transport services of the accounting entity; rents from nonoperating properties used by others; income or loss from nontransport divisions; and other income or loss from activities of the air carrier which are extraneous to the air transport and incidental services of the accounting entity. (b) This account shall include revenues and expenses applicable to nonscheduled transport services performed for the defense establishment when and as separate reports for such services are required in accordance with section 21 or 31, as applicable, Introduction to System of Reports. Where the foregoing transport services are not required to be separately reported, gross revenues from such services shall be included in profit and loss account 07 Charter and Special, or other appropriate revenue account, and gross expenses shall be included in the appropriate operating expense functions. [ER-327, 26 F.R. 4222, May 16, 1961, as amended by ER-369, 27 F.R. 12819, Dec. 28, 1962] 87.3 Amortization of Discount and Expense on debt. 87.4 Amortization of Premium on Debt. (80 Stat. 383, 5 U.S.C. 552) [ER-484, 32 F.R. 5368, Mar. 30, 1967] 88 Miscellaneous Nonoperating Credits. (a) Record here all credits of a nonoperating character not provided for otherwise, such as royalties from patents, gains from the reacquisition and retirement or resale of debt securities issued by the air carrier, and intercompany credit adjustments. (b) This account shall be subdivided as follows by all air carrier groups: 88.1 Intercompany Transaction Adjustment-Credit. Record here all intercompany credits for any differences between amounts at which transactions between the air carrier and its nontransport divisions or associated companies are initially recorded and are to be settled as provided under section 2-18. 88.9 Other. Record here all other miscellaneous nonoperating credits not included in subaccount 88.1 Intercompany Transaction Adjustment-Credit. [ER-707, 36 F.R. 20936, Nov. 2, 1971] 89 Miscellaneous Nonoperating Debits. (a) Record here all debits of a nonoperating character not provided for otherwise, such as fines or penalties imposed by governmental authorities; costs related to property held for future use; donations for charitable, social or community welfare purposes; losses on reacquired and retired or resold debt securities of the air carrier; losses on uncollectible nonoperating receivables or accruals to reserve for uncollectible nonoperating receivables; and intercompany debt adjustments. This account shall be charged with amortization of amounts carried in balance sheet account 1870 Property Acquisition Adjustment, unless otherwise approved or directed by the Civil Aeronautics Board. (b) This account shall be subdivided as follows by all air carrier groups: 89.1 Intercompany Transaction Adjustment-Debit. Record here all intercompany debits for any differences between amounts at which transactions between the air carrier and its nontransport divisions or associated companies are initially recorded and are to be settled as provided under section 2-18. 89.9 Other. Record here all other miscellaneous nonoperating debits not included in subaccount 89.1 Intercompany Transaction Adjustment-Debit. [ER-707, 36 FR. 20936, Nov. 2, 1971] Section 15-Objective Classification-Income Taxes for Current Period 91 Provision for income taxes. (a) Record here quarterly provisions for accruals of Federal, State, local, and foreign taxes based upon net income, computed at the normal tax and surtax rates in effect during the current accounting year. In general, this account shall reflect provisions within each period for currently accruing tax liabilities as actually or constructively computed on tax returns, and any subsequent adjustments. This account shall include credits for refund claims arising from the carryback of losses in the year in which the loss occurs, credits for the carry-forward of losses in the year to which the loss is carried, and investment tax credits in the year in which each credit is utilized to reduce the liability for income taxes. (See section 2-6.) Income taxes shall be apportioned between members of a consolidated tax group in accordance with the provisions of section 2-18. (b) This account shall be subdivided as follows by all carrier groups: 91.1 Income Taxes Before Investment Tax Credits. Record here accruals of income taxes based upon taxable income of the period. 91.2 Investment Tax Credits Utilized. Record here investment tax credits utilized to reduced the accrued liability for income taxes. [ER-437, 30 F.R. 8830, July 14, 1965; as amended by ER-707, 36 F.R. 20936, Nov. 2, 1971] 92 Provisions for Deferred Federal Income Taxes. (a) Record her income tax debits and credits deferred in accordance with the provisions of balance sheet account 2340 Deferred Federal Income Taxes for those income elements specifically set forth in section 2–6(b). (b) This account shall be subdivided as follows by all air carrier groups: accordance with the provisions of balance sheet account 2131 Accured Federal Income Taxes. This account shall also include amounts for previously deferred investment tax credits amortized during the current period. (b) This account shall be subdivided as follows by all carrier groups: 93.1 Investment Tax Credits Deferred. 93.2 Amortization of Deferred Investment Tax Credits. [ER-437, 30 F.R. 8830, July 14, 1965] Section 16-Objective Classification-Special Items 96 Special Income Credits and Debits (Net). Record here extraordinary income credits or debits accounted for during the current accounting year, in accordance with the previsions of section 2-7. Records supporting entries to this account shall be maintained with sufficient particularity to identify the nature and gross amount of each special income credit and each special income debit. 97 Special Income Tax Credits and Record here income taxes allocable to items of income included in profit and loss account 96 Special Income Credits and Debits (Net) and other extraordinary income tax assessments that do not constitute ordinary adjustments of a recurrent nature, in accordance with the provisions of section 2-7. Records supporting entries to this account shall be maintained with sufficient particularity to identify the nature and gross amount of each special credit and each special debit. [ER-437, 30 F.R. 8830, July 14, 1965] OPERATING STATISTICS CLASSIFICATIONS Section 19-Uniform Classification of Operating Statistics SOURCE: SECS. 19-1 through 19-6 contained in ER-586, 34 F.R. 14588, Sept. 19, 1969; ER597, 34 F.R. 19751, Dec. 17, 1969. 66-031 0-7218 A, C, E, G, L, N, P, R. A, E, G. C, E, G. A, C, E, G, L, N, P, R. A, C, E, G, L, N, P, R. A, C, E, G. A, C, E, G. A, C, E, G. ----- A, C, E, G. |