Section 407-730-2 - DefinitionsA. Regulatory Asset. An asset established on the books of a public utility pursuant to the actions of a regulatory body having jurisdiction over the utility.B. Flow-Through Income Tax Accounting. A methodology for calculating income tax expense for regulatory purposes whereby amounts of revenue or expense related to designated item(s) are included in the calculation of regulatory income taxes in the same time period as when the items are included on the company's actual tax return, even though the amount(s) are included on the utility's income statement for regulatory purposes in a different time period than that of the tax return, and for which no deferred taxes are recorded on the company's books.C. Net-Tax Accounting. An accounting procedure whereby an asset or a liability is recorded on a company's books and reported on its financial statements at an amount which includes the effect of income taxes owed or receivable.65-407 C.M.R. ch. 730, § 2