Nevada Administrative Code › Chapter 706 - Motor Carriers › UNIFORM SYSTEM OF ACCOUNTS FOR LIMOUSINE COMPANIES › Accounts › Section 706.40198 - Unincorporated companies: Net worth

Current through June 11, 2024
1. Notwithstanding
				any provision of the uniform system of accounts for limousine operations to the
				contrary, a company that is organized in any form other than an incorporated
				company, including, without limitation, a partnership, sole proprietorship,
				joint venture or association, is not required to record an item in both the
				capital and drawing accounts if the partnership agreement excludes the
				inclusion of the item in both accounts, but such an item must be recorded in
				either the capital or the drawing account, or both, for regulatory purposes and
				purposes of the uniform system of accounts for limousine operations. The
				required information relating to that particular item must be recorded in the
				same account in which the item has been recorded.
2. Once an election has been made pursuant to
				subsection 1 as to whether an item will be recorded in the capital or drawing
				account, 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 is amended making such consistency
				incompatible with the new or amended provisions of the partnership
				agreement.
3. The drawing account
				of a person within a company that is organized in any form other than an
				incorporated company, including, without limitation, a partnership, sole
				proprietorship, joint venture or association, need not be close to the person's
				capital account on an annual basis. For the purposes of financial statements
				and the uniform system of accounts for limousine operations, the capital
				balance of the person must be the net amount of the combination of the balances
				of the person's drawing account and his or her capital account.
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, operating or other functional expense
				accounts.
5. A capital account must
				be used by a company that is organized in any form other than an incorporated
				company, including, without limitation, a partnership, sole proprietorship,
				joint venture or association. The capital account 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 as to allow ready identification including source, analysis and
				verification of all relevant facts. The capital 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 affected
				by such distributions.
6. The
				withdrawal account must include 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 allow ready identification, including source, analysis and
				verification of all relevant facts.
Added to NAC by
				  Transportation Serv. Auth. by R040-02, eff.
				  9-20-2002
NRS
					 706.167,
					 706.171