Sec.

FINANCIAL STATEMENTS

282.930 Traveling expenses.

Sec.

282.0-20 Balance sheet statement. 282.0-30 Income statement. 282.0-40 Water-line operating revenue and expense statement.

AUTHORITY: The provisions of this Part 282 issued under sec. 204, 49 Stat. 1987, as amended; 46 U.S.C. 1114. Interpret or apply sec. 801, 49 Stat. 2011, as amended; 46 U.S.C. 1211.

SOURCE: The provisions of this Part 282 contained in Revised General Order 22, 15 F.R. 7935, Nov. 21, 1950, unless otherwise noted.

CROSS REFERENCE: For uniform system of accounts for maritime carriers, issued by the Interstate Commerce Commission, see 49 CFR, Part 1208.

NOTE: In this part the numbers assigned to sections include, as whole numbers following the decimal point, the numbers of the prescribed accounts. Cross references to an account are made by citing only the account number portion of the section reference. Instructions, as distinguished from the texts of prescribed accounts, are designated § 282.0 with the prescribed instruction numbers appearing as subnumbers following a dash.

§ 282.00 General order of Maritime Administrator.

(a) Uniform system of accounts for operating-differential subsidy contractors. Every operating-differential subsidy contractor and such affiliate, domestic agent, subsidiary, or holding company connected with, or directly or indirectly controlling or controlled by, such contractor, as the Maritime Administration shall require, shall keep its books, records, and accounts, relating to the maintenance, operation, and servicing of the vessels, services, routes, and lines covered by an agreement, entered into pursuant to the provisions of Title VI of the Merchant Marine Act, 1936, as amended (secs. 601-610, 49 Stat. 2001-2007; 46 U.S.C. 1171-1180), as prescribed in, and in the manner required by, the "Uniform System of Accounts for Maritime Carriers" annexed hereto.

(b) Effective date of section. As to each contractor with which the United States Maritime Commission or the Federal Maritime Board has entered into an operating-differential subsidy agreement pursuant to the provisions of Title VI of the Merchant Marine Act, 1936, as amended, this section shall become effective on January 1, 1951. As to every other company included within the terms of this section, the same shall become effective upon the first day of the

calendar month during which such company and the Federal Maritime Board enter into an operating-differential subsidy agreement pursuant to the provisions of Title VI of the Merchant Marine Act 1936, as amended. The books, records and accounts referred to in this section shall be retained in accordance with the provisions of § 380.24 of this chapter.

[G.O. 22, Rev., 15 F.R. 7935, Nov. 21, 1950, as amended by Amdt. 3, 23 F.R. 6283, Aug. 15, 1958; 30 F.R. 12356, Sept. 28, 1965]

§ 282.01 Abstract from law; Merchant Marine Act.

Section 801 of Title VIII of the Merchant Marine Act, 1936:

Every contract executed by the Commission under the provision of titles VI or VII of this act shall contain provisions requiring (1) that the contractor and every affiliate, domestic agent, subsidiary, or holding company connected with, or directly or indirectly controlling or controlled by, the contractor, to keep its books, records, and accounts, relating to the maintenance, operation, and servicing of the vessels, services, routes, and lines covered by the contract, in such form and under such regulations as may be prescribed by the Commission: Provided, That the provisions of this paragraph shall not require the duplication of books, records, and accounts required to be kept in some other form by the Interstate Commerce Commission; (2) that the contractor and every affiliate, domestic agent, subsidiary, or holding company connected with, or directly or indirectly controlling or controlled by, the contractor, to file, upon notice from the Commission, balance sheets, profit and loss statements, and such other statements of financial operations, special report, memoranda of any facts and transactions, which in the opinion of the Commission affect the financial results in, the performance of, or transactions or operations under, such contract; (3) that the Commission shall be authorized to examine and audit the books, records, and accounts of all persons referred to in this section whenever it may deem it necessary or desirable; and (4) that upon the willful failure or refusal of any person described in this section to comply with the contract provisions required by this section, the Commission shall have the right to rescind the contract, and upon such rescission the United States shall be relieved of all further liability on such contract.

The books, records and accounts referred to in this section shall be retained in accordance with the provisions of § 380.24 of this chapter.

[G.O. 22, Rev., 15 F.R. 7935, Nov. 21, 1950, as amended at 30 F.R. 12356, Sept. 28, 1965]

(b) "Related companies" means companies or persons that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the accounting carrier.

NOTE: Where reference is made to control (in referring to a relationship between any person or persons and another person or persons), such reference shall be construed to include actual as well as legal control, whether maintained or exercised through or by reason of the method of or circumstances surrounding organization or operation, through or by common directors, officers, or stockholders, a voting trust or trusts, a holding or investment company or companies, or through or by any other direct or indirect means; and to include the power to exercise control.

(c) "Current assets" means cash, as well as those assets that are readily convertible into cash or are held for current operation, and other amounts accruing to the carrier and subject to settlement within one year from date of the balance sheet.

(d) "Current liabilities" means those obligations the amounts of which are definitely determined or can be closely estimated and which are either matured at the date of the balance sheet or become due upon demand or within one year from the date of the balance sheet.

(e) "Debt expense” means all expense in connection with the issuance and sale of evidences of long-term debt, such as fees for drafting mortgages and trust deeds; fees and taxes for issuing or recording evidences of debt; cost of engraving and printing bonds, certificates of indebtedness, and other evidences of debt; fees paid trustees; specific cost of obtaining governmental authority; fees for legal services; fees and commissions paid underwriters, brokers, and salesmen for marketing evidences of debt; fees and expenses of listing on exchanges; and other like costs.

(f) "Discount," as applied to securities issued or assumed by the carrier, means the excess of the par or face value

of the securities, plus interest or dividends accrued to the date of the sale, over the cash value of the consideration received from the sale.

(g) "Nonshipping property" me ans property neither used in nor held for transportation service.

(h) "Premiums," as applied to securities issued or assumed by the carrier, means the excess of the cash value of the consideration received at their sale over the sum of their par or face value plus interest or dividends accrued to the date of sale.

(i) "Shipping property" means property which is used or held for use by the carrier in the conduct of its shipping operations.

(a) The carrier's records shall be kept with sufficient particularity to show fully the facts pertaining to all entries in its accounts.

(b) Where the general book entries do not contain complete information they shall be supported by other detailed records, cross-referenced for ready identification.

(c) All records shall be filed in such manner as to be readily accessible for examination.

(d) All accounts kept shall conform in number and title to those prescribed in this part.

(e) Accounts included in this system may be subdivided if such subaccounts do not impair the integrity of the accounts or records prescribed in this part.

(f) The accounts for each month shall be recorded currently so that all transactions applicable to each month, as nearly as may be ascertained, shall be entered in the books of the carrier.

§ 282.0-3 Unaudited items.

(a) When it is known that a transaction has occurred which affects operating revenues, operating expenses, or income, but the amount involved and its effect upon the accounts cannot be determined with absolute accuracy, the amount thereof shall be estimated and included in the appropriate operating or income and balance-sheet accounts. Any such estimate shall be adjusted as soon as the actual amount is determined.

(b) Accruals shall not be recorded for purely speculative items, but shall be limited to reasonable estimates on reliable information of transactions that will be consummated.

§ 282.0-4

Submission of questions.

To promote and maintain uniformity of accounting, carriers shall submit all questions of doubtful interpretation of the accounting regulations for consideration and decision to the agency having jurisdiction over the carrier's accounts. § 282.0-5 Terminated voyages.

(a) The carrier shall keep its records in such manner that it can report with respect to operating revenue, operating expense, and other accounts affected, the revenues accruing and the expenses incurred for each terminated voyage of its vessels operated in line service.

(b) The revenues and expenses for uncompleted voyages or periods, included in unterminated voyage accounts, shall be recorded in such detail that the operating revenue, operating expense, or other accounts affected may be transferred from the unterminated voyage accounts to the appropriate revenue, expense, and other accounts involved.

§ 282.0-6 Balance-sheet accounts.

The balance-sheet accounts are intended to disclose the financial condition of the carrier as of a given date by showing the assets, liabilities, capital stock, and surplus (or deficit) of the carrier. § 282.0-7 Conversion of securities.

Journal entries which record the requirement of capital stock or funded debt securities by issuing in exchange the carrier's capital stock or funded debt shall be submitted to the Interstate Commerce Commission for approval before being recorded upon the books by car. riers reporting to that Commission. § 282.0-8

Contingent assets and liabili

ties. Contingent assets and liabilities shall not be included in the accounts, but such records shall be kept as will enable the carrier to report all items of signifilcant amount.

§ 282.0-9 Revenue accounts.

(a) The revenue accounts are designed to show the amounts of revenue which the carrier becomes entitled to receive from furnishing of transportation service, including service incidental thereto.

(b) The accounting for operating revenues shall be coincident with the transactions which create them. For the purpose of meeting this requirement, the carrier shall account for unaudited revenues upon an accrual basis.