Sec. 561.18. Spreading of income, revenue, and expense items

(a) When the amount of any unusual item includible in an income, operating revenue, or operating expense account for a single month is relatively so large that its inclusion in the accounts for that month would seriously distort those accounts, it may be included in account 186, Miscellaneous Deferred Debits, or account 253, Other Deferred Credits, as appropriate, and distributed in equal amounts to the accounts for the current and remaining months of the calendar year.

(b) When the amount of any unusual item includible in the income, operating revenue, or operating expense accounts is relatively so large that its inclusion in the accounts for the year in which the transaction occurred, would seriously distort those accounts, the company may request permission to include all or a part of the amount in account 186, Miscellaneous Deferred Debits, or account 253, Other Deferred Credits to be amortized over such period and through such accounts as the commission shall determine. Without permission of this commission no such items shall be carried beyond the year in which the transaction occurred.