NAC706.401995. Income statement accounts.

     1. The account for net income before federal taxes must be an income statement account that reflects the difference between the sum of all income accounts and the sum of all expenses, before arriving at a figure for federal income taxes.

     2. The account for federal income taxes on earnings must include the amount of federal income tax expense incurred by the company during the accounting period. Concurrent credits for tax accruals must be made to the account for accrued federal income taxes described in NAC 706.401977. As the exact amount of taxes becomes known, the current tax expense must be adjusted accordingly so that this account includes, in each year, the applicable taxes.

     3. The account for net income after federal taxes must be an income account that reflects the net earnings after giving effect to federal taxes.

     4. The dividends account must include the amount of dividends paid or declared by the company during the calendar year. The account for dividends payable described in subsection 2 of NAC 706.401976 must be set up as a liability whenever such dividends are declared.

     (Added to NAC by Transportation Serv. Auth. by R040-02, eff. 9-20-2002)