18 CFR § 367.4040 - Account 404, Amortization of limited-term property.

---
identifier: "/us/cfr/t18/s367.4040"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "18 CFR § 367.4040 - Account 404, Amortization of limited-term property."
title_number: 18
title_name: "Conservation of Power and Water Resources"
section_number: "367.4040"
section_name: "Account 404, Amortization of limited-term property."
chapter_name: "FEDERAL ENERGY REGULATORY COMMISSION, DEPARTMENT OF ENERGY"
subchapter_number: "U"
subchapter_name: "REGULATIONS UNDER THE PUBLIC UTILITY HOLDING COMPANY ACT OF 2005, FEDERAL POWER ACT AND NATURAL GAS ACT"
part_number: "367"
part_name: "UNIFORM SYSTEM OF ACCOUNTS FOR CENTRALIZED SERVICE COMPANIES SUBJECT TO THE PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 2005, FEDERAL POWER ACT AND NATURAL GAS ACT"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 717  16 U.S.C. 791a  and 42 U.S.C. 16451-16463."
regulatory_source: "Order 684, 71 FR 65226, Nov. 7, 2006, unless otherwise noted."
cfr_part: "367"
---


# 367.4040 Account 404, Amortization of limited-term property.

This account must include amortization charges applicable to amounts included in the service company property accounts for limited-term franchises, licenses, patent rights, limited-term interests in land, and expenditures on leased property where the service life of the improvements is terminable by action of the lease. The charges to this account must be sufficient to distribute the book cost of each investment as evenly as may be over the period of its benefit (*See* account 111, Accumulated provision for amortization of service company property (§ 367.1110)).