Sec.  32.7100   Other operating income and expenses.

   This account shall be used to record the results of transactions, events or
   circumstances during the periods which are incidental or peripheral to the
   major or central operations of the company. It shall be used to record all
   items of an operating nature such as incidental work performed for others
   not provided for elsewhere. Whenever practicable the inflows and outflows
   associated with a transaction, event or circumstances shall be matched and
   the result shown as a net gain or loss. This account shall include the
   following:

   (a) Profits realized from custom work (plant construction) performed for
   others incident to the company's regulated telecommunications operations.
   This includes profits from the incidental performance of nontariffed
   construction activities (including associated engineering and design) for
   others which are similar in nature to those activities which are performed
   by the company in constructing its own telecommunications plant facilities.
   The records supporting the entries in this account for income and custom
   work shall be maintained with sufficient particularity to identify
   separately the revenue and costs associated with each undertaking.

   (b) Return on investment for the use of regulated property plant and
   equipment to provide nonregulated products and services.

   (c) All gains and losses resulting from the exchange of foreign currency.
   Transaction (realized) gains or losses shall be measured based on the
   exchange rate in effect on the transaction date. Unrealized gains or losses
   shall be measured based on the exchange rate in effect at the balance sheet
   date.

   (d) Gains or losses resulting from the disposition of land or artworks.

   (e) Charges or credits, as appropriate, to record the results of
   transactions, events or circumstances which are of an operational nature,
   but occur irregularly or are peripheral to the major or central operations
   of the company and not provided for elsewhere.

   [ 67 FR 5698 , Feb. 6, 2002]