Section 45-18-006 - REPORTING AND ACCOUNTING006.01 Quarterly Reports of Condition require bank holdings of investment company shares to be reported at the lower of the aggregate cost or market value in RC-B SECURITIES. Reference the glossary entry for "marketable equity securities,". 006.01A Market value of "open-end" investment companies should be based on net asset value rather than offering price.006.01B Shares in "closed-end" investment companies should be marked to the bid price.006.01C At no time may the carrying value of investment company holdings be increased above their aggregate cost as a result of net unrealized gains.006.02 Net unrealized losses on marketable equity securities and subsequent recoveries of net unrealized losses must be excluded from RI-INCOME STATEMENT and be reported (reduced by applicable income tax effect) in RI-A CHANGES IN EQUITY CAPITAL as an adjustment to "Undivided Profits and Capital Reserves." A loss on an individual investment which is other than temporary should be charged to noninterest expense on RI-INCOME STATEMENT.006.03 As part of the market value determination referred to above, mutual fund sales fees, both "front end load" and "deferred contingency", must be deducted the current value of fund shares. Unless the market value of such shares increases to offset these fees, the fees will be reflected as unrealized losses and effectively charged against "Undivided Profits and Capital Reserves."45 Neb. Admin. Code, ch. 18, § 006
Adopted effective 11/25/2023