18 CFR § 367.9 - Prior period items.

---
identifier: "/us/cfr/t18/s367.9"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "18 CFR § 367.9 - Prior period items."
title_number: 18
title_name: "Conservation of Power and Water Resources"
section_number: "367.9"
section_name: "Prior period items."
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: "2026-04-05"
last_updated: "2026-04-05"
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"
---


# 367.9 Prior period items.

(a) Items of profit and loss related to the following must be accounted for as prior period adjustments and excluded from the determination of net income for the current year:

(1) Correction of an error in the financial statements of a prior year.

(2) Adjustments that result from realization of income tax benefits of pre-acquisition operating loss carry forwards of purchased subsidiaries.

(b) All other items of profit and loss recognized during the year must be included in the determination of net income for that year.