§ 367.24. Construction and service contracts for other companies.
202 words·~1 min read·
/us/cfr/t18/s§ 367.24·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)Expenditures made in the performance of construction or service contracts, under which the service company undertakes projects to construct physical property for associate or non-associate companies must be recorded in Account 412, Cost and expenses of construction or other services (§ 367.4120). The service company must keep records pursuant to its cost allocation system indicating the cost of each contract or project, the amount of service costs allocated to the contracts, and the additional classification of expenditures relating to projects that will meet the accounting requirements of the company for which the work is performed.
(b)Account 412 (§ 367.4120) will include:
(1)The cost of materials, construction payrolls, outside services, and other expenses which are directly attributable to the performance of service or construction contracts for other companies.
(2)The cost of goods procured directly attributable to the performance of service or construction contracts for other companies.
(3)The related salaries, expense of officers and employees, pay of employees on the service company's regular staff specifically assigned to construction work, and other expenses of maintaining the service company's organization and equipment.
(4)The support services performed by the service company in connection with the procurement of goods for associate companies.