Statutes, codes, and regulations
Code of Massachusetts Regulations
Department 220 CMR - DEPARTMENT OF PUBLIC UTILITIESTitle 220 CMR 50.00 - Uniform System Of Accounts For Gas CompaniesBALANCE SHEET ACCOUNTS ASSETS AND OTHER DEBITS
OTHER PROPERTY AND INVESTMENTS
Section 123 - Investment in Associated Companies

220 CMR, 50, 123

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Current through Register 1531, September 27, 2024
Section 123 - Investment in Associated Companies
A. This account shall include the book cost of investments in securities issued or assumed by associated companies and investment advances to such companies, including interest accrued thereon when such interest is not subject to current settlement. Include also the offsetting entry to the recording of amortization of discount or premium on interest-bearing investments. (See account 419, Interest and Dividend Income.)
B. This account shall be maintained in such manner as to show the investment in securities of, and advances to, each associated company together with full particulars regarding any of such investments that are pledged.

220 CMR, 50, 123

NOTE A. - Securities and advances of associated companies owned and pledged shall be included in this account, but such securities, if held in special deposits or in special funds, shall be included in the appropriate deposit or fund account. A complete record of securities pledged shall be maintained.

NOTE B. - Securities of associated companies held as temporary cash investments are includible in account 136, Temporary Cash Investments.

NOTE C. - Balances in open accounts with associated companies, which are subject to current settlement, are includible in account 146, Accounts Receivable from Associated Companies.

NOTE D. - The utility may write down the cost of any security in recognition of a decline in the value thereof. Securities shall be written off or written down to a nominal value if there be no reasonable prospect of substantial value. Fluctuations in market value shall not be recorded but a permanent impairment in the value of securities shall be recognized in the accounts. When securities are written off or written down, the amount of the adjustment shall be charged to account 435, Miscellaneous Debits to Surplus, or to an appropriate account for accumulated provisions for loss in value established as a separate subdivision of this account.