N.Y. Comp. Codes R. & Regs. tit. 16 § 197.8

Current through Register Vol. 46, No. 50, December 11, 2024

Section 197.8 - Discount or premium on owned securities of others

(a) When securities with a fixed maturity date are purchased at a discount (that is, when the total cost, including brokerage fees, taxes, commissions, etc., is less than par), such discount may be spread over the remaining life of the securities through periodic debits to the account in which the securities are carried (preferably coincident with entries recording interest accruals) and credits to account 444, Miscellaneous Non-operating Revenues.

(b) In like manner, when securities with a fixed maturity date are purchased at a premium (that is, when the total cost, including brokerage fees, taxes, commissions, etc., is in excess of par), such premium may be amortized over the remaining life of the securities through periodic credits to the account in which the securities are carried (preferably coincident with entries recording interest accruals) and debits to account 449, Non-operating Revenue Deductions.

(c) No debits shall be made in respect of discount upon securities held as investments or in special funds unless there is reason to believe that such securities will be redeemed at not less than par and at a date not later than their maturity.

N.Y. Comp. Codes R. & Regs. Tit. 16 § 197.8