- 39 -
b. Accounting
For the taxable years ended December 31, 1983 and 1984, UPS-
New York and UPS-Ohio were required to file annual reports with
the ICC and were required to follow the rules of accounting and
use the accounts established by the ICC in connection with ICC
accounting and reporting requirements. Petitioner was also
required to follow Generally Accepted Accounting Principles. For
financial accounting and managerial reporting purposes,
petitioner used a system of accounts that was generally the same
as the ICC system of account numbers. However, petitioner's
expense accounts are much more detailed than ICC expense accounts
used for ICC accounting purposes.
With respect to a shipment made by a regular customer, there
was no change in the method in which journal entries were made in
1983 and 1984. Petitioner generally debited accounts receivable
and credited an intercompany account. When petitioner received
the EVC amounts from its shippers, the amounts were deposited in
petitioner's bank accounts. Petitioner paid shippers' claims out
of corporate bank accounts.
Petitioner did make changes to its internal accounting
worksheets at its district level in 1984. The worksheets
detailed the EVC's differently in 1984 than in 1983. However,
petitioner's accounting journal entries were the same in 1984 as
they were in 1983 at the district level.
Page: Previous 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 NextLast modified: May 25, 2011