Nevada Administrative Code › Chapter 706 - Motor Carriers › UNIFORM SYSTEM OF ACCOUNTS FOR TAXICAB COMPANIES › Accounts › Section 706.810 - Unincorporated companies: Net worth

Current through June 11, 2024
1. To provide
			 flexibility to the required entries recorded in the capital and drawing
			 accounts, which flexibility is required because these accounts encompass the
			 varied terms and provisions of partnership agreements of different companies
			 operating under an unincorporated form of business organization, permissive
			 wording is used for the required entries and the description of the items to be
			 included in both the capital and drawing accounts. Despite the permissive
			 language employed, it is intended that where permissive wording has been used
			 to describe items included in both of these accounts, if an item by the terms
			 or provisions of the particular company's partnership agreement excludes such
			 item from one of the accounts, then such item must be included in the other
			 account both for regulatory purposes and for purposes of this uniform system of
			 accounts. The required information related to a particular item must be
			 recorded in the same account in which the item has been recorded.
2. Once an election has been made as to which
			 of the two accounts must contain the item in question, the company must be
			 consistent in the inclusion of the item in the same account in future years
			 unless a new partnership agreement has been made or the old partnership
			 agreement has been amended making such consistency incompatible with the new or
			 amended partnership agreement provisions.
3. Neither a provision nor a requirement has
			 been expressed for an annual closing of a particular person's drawing account
			 to his or her capital account. This has been omitted to allow flexibility to
			 these accounts in accordance with the possible terms or provisions of
			 partnership agreements of the various companies. It is to be clearly understood
			 that a person's capital balance must be the net amount of the combination of
			 his or her drawing and capital account balances both for financial statement
			 purposes and for purposes of NAC 706.558 to 706.855, inclusive.
4. Amounts payable to the proprietor,
			 partners, or other persons maintaining an ownership interest in the company, as
			 fair and reasonable compensation for services performed must be charged to the
			 appropriate administrative, operation or other functional expense
			 accounts.
5. A capital account must
			 be used when the organizational form of business is that of a partnership, sole
			 proprietorship, joint venture, association, or any other form, other than an
			 incorporated company. It must include the capital contributions made or
			 earnings retained in the business by the persons who own the company.
			 Subaccounts must be maintained for each person having an ownership interest in
			 the company and any entries recorded must be so detailed and described to
			 permit ready identification including source, analysis and verification of all
			 relevant facts. This account may be credited or debited as appropriate for
			 additional capital contributions and for the results of annual operations, gain
			 or loss. The basis upon which the distribution of gain or loss affects the
			 various ownership interests may be noted and supporting records must be
			 maintained detailing all facts and factors which such distributions
			 affected.
6. The withdrawal account
			 includes all withdrawals of capital and personal expenses paid by the company
			 on behalf of persons having an ownership interest in the company. Subaccounts
			 must be maintained for each person having an ownership interest in the company
			 and any entries recorded must be so detailed and described as to permit ready
			 identification, including source, analysis and verification of all relevant
			 facts.
Taxicab Auth., Uniform System of
			 Accounts Reg. §§ 361.01 -363, eff. 12-24-70; A
			 11-16-79
NRS
			 706.8818,
			 706.8829