New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter IV - STEAM UTILITIES › Subchapter F - Uniform Systems Of Accounts › Article 1 - Classes A and B › Part 462 - Instructions-balance Sheet Accounts › Section 462.6 - Discount, expense, and premium on long-term debt

Current through Register Vol. 46, No. 28, July 10, 2024
(a) A discount, expense, and premium account
					 shall be maintained for each class and series of long-term debt (including
					 receivers' certificates) issued or assumed by the utility, in which shall be
					 recorded the discount, expense, and premium associated with the issuance and
					 sale of each such class and series of debt.
(b) In stating the balance sheet, the total
					 of the debit balances (discount plus expense, or expense less premium)
					 remaining in those accounts having debit balances, shall be reported under
					 account 140, Unamortized Debt Discount and Expense, and the total of the credit
					 balances (premium less expense) remaining in those accounts having credit
					 balances shall be reported under account 240, Unamortized Premium on Debt.
					 Accounts with debit balances shall not be set off by accounts with credit
					 balances.
(c) The discount,
					 expense, and premium referred to above shall be amortized over the life of the
					 respective issues under such a plan as will equitably distribute the amounts
					 over the life of the securities. The amortization shall be on a monthly basis,
					 and the amounts thereof shall be charged to account 531, Amortization of Debt
					 Discount and Expense, or credited to account 532, Amortization of Premium on
					 Debt--Credit, as may be appropriate. The utility may, however, accelerate the
					 charging off of discount and expense by charges to account 531, Amortization of
					 Debt Discount and Expense, or to account 414, Miscellaneous Debits to
					 Surplus.
(d) When any long-term
					 debt is reacquired or redeemed without being converted into another form of
					 long-term debt and when the transaction is not in connection with a refunding
					 operation, the unamortized debt discount and expense or premium applicable to
					 the debt reacquired or redeemed shall be cleared from the accounts. If a debit,
					 such amount may be distributed in whole or in part to either account 531,
					 Amortization of Debt Discount and Expense, or to account 414, Miscellaneous
					 Debits to Surplus; or, if a credit, to either account 532, Amortization of
					 Premium on Debt--Credit, or account 401, Miscellaneous Credits to Surplus. The
					 difference, if any, between the face amount of the debt reacquired or redeemed,
					 and the amount paid upon reacquirement shall be distributed, if a debit, to
					 either account 538, Miscellaneous Income Deductions, or account 414,
					 Miscellaneous Debits to Surplus; or, if a credit, to either account 526,
					 Miscellaneous Non-operating Revenues, or account 401, Miscellaneous Credits to
					 Surplus.
(e) When the redemption of
					 one issue or series of bonds or other long-term obligations is financed by
					 another issue or series before the date of maturity of the first issue, the
					 accounting shall be as provided in subdivision (d) unless otherwise ordered or
					 directed by the commission.
(f)
					 Discount, expense, or premium on debt shall not be included as part of the cost
					 of constructing or acquiring any property, tangible or intanglible, except
					 under the provisions of section
					 463.4(a)(14) 
					 of this Title.