Section 706.40198 - Unincorporated companies: Net worth1. 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.Nev. Admin. Code § 706.40198
Added to NAC by Transportation Serv. Auth. by R040-02, eff. 9-20-2002