N.M. Admin. Code § 17.12.720.19

Current through Register Vol. 35, No. 21, November 5, 2024

Section 17.12.720.19 - RETAINED EARNINGS ACCOUNTS

A. 435 - Balance Transferred from Income: This account shall include the net credit or debit transferred from income for the year.

B. 436 - Appropriations of Retained Earnings:

(1) This account shall include appropriations of retained earnings.

(2) Item:

(a) Appropriations required under terms of mortgages, orders of court, contracts, or other agreements.

(b) Appropriations required by action of regulatory authorities.

(c) Other appropriations made at option of utility for specific purposes.

C. 438 - Dividends Declared:

(1) This account shall include amounts declared payable out of retained earnings as dividends on actually outstanding common stock issued by the utility.

(2) Dividends shall be segregated for each class of common stock as to those payable in cash, stock, and other forms. If not payable in cash, the medium of payment shall be described with sufficient detail to identify it.

D. 439 - Adjustments to Retained Earnings:

(1) This account shall include significant nonrecurring transactions relating to prior periods. Other than transactions of stock as specified in paragraph B [(2)] below, all entries to this account must receive prior Commission approval. These transactions are limited to those adjustments which (a) can be specifically identified with and related to the business activities of particular prior periods, (b) are not attributable to economic events occurring subsequent to the date of the financial statements for the prior period, (c) depend primarily on determinations by persons other than the management, and (d) were not susceptible to reasonable estimation prior to such determination. This account shall also include the related income tax effects (State and Federal) on items included herein. All items included in this account shall be sufficiently described in the entries relating thereto as to permit ready analysis.

(2) Adjustments, charges, or credits due to losses on reacquisition, resale, or retirement of the company's own capital stock shall be included in this account.

(3) Item:

(a) Significant nonrecurring adjustments or settlement of income taxes.

(b) Significant amounts resulting from litigation or similar claims.

(c) Significant amounts relating to adjustments or settlements of utility revenue under rate processes.

(d) Significant adjustments to plant in service depreciation and amortization as a result of Commission direction.

(e) Write-off of unamortized capital stock expenses.

N.M. Admin. Code § 17.12.720.19

Recompiled 12/30/01