UNBILLED REVENUES.
Unbilled revenues may be accrued or not accrued according to the policy adopted by the utility. The recording of unbilled revenues-if not recorded before- hand-does not constitute an accounting change for income tax purposes; also, if unbilled revenues are included as a part of the accounting record they will have no effect on the working capital rate base. The statement of assets and liabilities in a balance sheet does not purport to represent the financial position of the company upon a liquidated basis, but rather that of a going concern. The accounts of utilities are customarily maintained in accordance with generally accepted accounting principles, and one of these principles is that income is not taken into the accounts until realized. Most electric and gas utilities consider that point of realization of income as the date the bill is rendered to the customer.
- DOI
- 10.2308/tar-7058091
- Volume
- 32 (3)
- Pages
- 403-405
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref