Goto Section: 32.22 | 32.24 | Table of Contents
Revised as of September 1, 2021
Goto Year:2020 |
§ 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 § § 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 § 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
§ § 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
§ 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]
Goto Section: 32.22 | 32.24
Goto Year: 2020 |
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