FCC 32.23 Revised as of October 1, 2006
Goto Year:2005 |
2007
Sec. 32.23 Nonregulated activities.
(a) This section describes the accounting treatment of activities classified
for accounting purposes as “nonregulated.” Preemptively deregulated
activities and activities (other than incidental activities) never subject
to regulation will be classified for accounting purposes as
“nonregulated.” Activities that qualify for incidental treatment under the
policies of this Commission will be classified for accounting purposes as
regulated activities. Activities that have been deregulated by a state will
be classified for accounting purposes as regulated activities. Activities
that have been deregulated at the interstate level, but not preemptively
deregulated, will be classified for accounting purposes as regulated
activities until such time as this Commission decides otherwise. The
treatment of nonregulated activities shall differ depending on the extent of
the common or joint use of assets and resources in the provision of both
regulated and nonregulated products and services.
(b) When a nonregulated activity does not involve the joint or common use of
assets and resources in the provision of both regulated and nonregulated
products and services, carriers shall account for these activities on a
separate set of books consistent with instructions set forth in Sec. Sec. 32.1406
and 32.7990. Transfers of assets, and sales of products and services between
the regulated activity and a nonregulated activity for which a separate set
of books is maintained, shall be accounted for in accordance with the rules
presented in Sec. 32.27, Transactions with Affiliates. In the separate set of
books, carriers may establish whatever detail they deem appropriate beyond
what is necessary to provide this Commission with the information required
in Sec. Sec. 32.1406 and 32.7990.
(c) When a nonregulated activity does involve the joint or common use of
assets and resources in the provision of regulated and nonregulated products
and services, carriers shall account for these activities within accounts
prescribed in this system for telephone company operations. Assets and
expenses shall be subdivided in subsidiary records among amounts solely
assignable to nonregulated activities, amounts solely assignable to
regulated activities, and amounts related to assets and expenses incurred
jointly or in common, which will be allocated between regulated and
nonregulated activities. Carriers shall submit reports identifying regulated
and nonregulated amounts in the manner and at the times prescribed by this
Commission. Nonregulated revenue items not qualifying for incidental
treatment as provided in Sec. 32.4999(l) of this part, shall be recorded in
separate subsidiary record categories of Account 5280, Nonregulated
operating revenue. Amounts assigned or allocated to regulated products or
services shall be subject to part 36 of this chapter.
[ 52 FR 6560 , Mar. 4, 1987, as amended at 53 FR 49322 , Dec. 7, 1988; 59 FR 46930 , Sept. 13, 1994; 64 FR 50007 , Sept. 15, 1999]
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