---
kind: "section"
citation: "18 C.F.R. § 367.4390"
title: "18"
number: "367.4390"
heading: "Account 439, Adjustments to retained earnings."
url: "https://uscodex.org/cfr/18/367.4390"
---

# §367.4390. Account 439, Adjustments to retained earnings.

- (a) This account must, with prior Commission approval, include significant non-recurring transactions accounted for as prior period adjustments, as follows:
  - (1) **Correction of an error in the financial statements of a prior year.**
  - (2) Adjustments that result from realization of income tax benefits of reacquisition operating loss carry forwards of purchased subsidiaries. All other items of profit and loss recognized during a year must be included in the determination of net income for that year.
- (b) Adjustments, charges, or credits due to losses on reacquisition, resale or retirement of the company's own capital stock must be included in this account.

## Notes

### Authority

Authority: 15 U.S.C. 717 et seq., 16 U.S.C. 791a et seq., and 42 U.S.C. 16451-16463.

### Source

Source: Order 684, 71 FR 65226, Nov. 7, 2006, unless otherwise noted.