NAC706.768. Accounts for other assets.

     1. The investment account includes the book cost of investments made for a period or periods to exceed 1 year in duration in securities, notes, mortgages and other items, of both associated and nonassociated companies. This account must also include the offsetting entry to the recording of amortization of discount or premium on interest-bearing investments when such interest-bearing investments were purchased for less or more than face value. Information to be included for each note or security must include the type of note or security, maker, payee, payor, date of issuance, certificate number, date of maturity, interest or dividend rate, face value and other identifying information. Securities owned and pledged must be included in this account and a complete record of securities pledged must be maintained. The company’s records must bear sufficient detail and description, including the use of subaccounts where necessary, to permit ready identification, analysis and verification of all relevant facts for each class of investment, for example, associated or nonassociated company, note mortgage, bonds, stocks or security pledged.

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

     3. An account for payroll clearing may be used by companies desiring such an account. If used, the account must be cleared monthly.

     [Taxicab Auth., Uniform System of Accounts Reg. §§ 281-290, eff. 12-24-70]