Subject to regulation of the Division Director, the board of directors of each savings and loan association shall allocate the profits of the association, at least annually, at the times the bylaws provide. The board of directors of each savings and loan association shall: In accordance with generally accepted accounting principles, determine gross income for the association; and Exclude from gross income: Income received or accrued during the period of default for any asset upon which a default exists; and Discounts that are amortized on securities upon which a default exists. To determine the amount of net profits, the board of directors shall deduct items from gross income in accordance with generally accepted accounting principles. By regulation the Division Director may permit or deny other items to be included in, or deducted from, gross income.