NAC706.401967. Accounts for other assets.

     1. The investment account must include:

     (a) The book cost of investments made for a period or periods of more than 1 year in duration in securities, notes, mortgages and other items, of both associated companies and companies that are not associated companies; and

     (b) The offsetting entry to the recording of amortization of discount or premium on interest-bearing investments when such investments were purchased for less or more than face value.

     2. Information to be included for each note or security includes the type of note or security, maker, payee, payor, date of issuance, certificate number, date of maturity, interest or dividend rate, face value and any other identifying information. Securities owned and pledged must be included in the investment account, and a complete record of securities pledged must be maintained. The records of the company must bear sufficient detail and description, including the use of subaccounts where necessary, to allow ready identification, analysis and verification of all relevant facts for each class of investment, including, without limitation, investments in associated companies and in companies that are not associated companies, note mortgages, bonds, stocks or securities pledged.

     3. If a company is acquired at a cost in excess of its book value, the excess must be charged to the goodwill account.

     4. A company may use an account for payroll clearing. If such an account is used, it must be cleared monthly.

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