Goto Section: 32.4550 | 32.5000 | Table of Contents
Revised as of September 1, 2021
Goto Year:2020 |
§ 32.4999 General.
(a) Purpose of revenue accounts. The revenue accounts are intended to
include the actual cash inflows (or equivalents) that have or will
occur as a result of the company's ongoing major or central operations
during the period. They will include the revenues which arise from
furnishing regulated telecommunications services to others, from
directory advertising, rentals of telecommunications assets and from
providing other services which are directly associated with the
provision of regulated telecommunications services.
(b) Deductions from revenue. Corrections of overcharges, authorized
refunds of overcollections previously credited to revenue, authorized
refunds and adjustments on account of failure in service, and other
corrections shall be charged to the revenue account previously credited
with the amounts involved.
(c) Commissions. Commissions paid to others or employees in place of
compensation or salaries for services rendered, such as public
telephone commissions, shall be charged to Account 6623, Customer
services, and not to the revenue accounts. Other commissions shall be
charged to the appropriate expense accounts.
(d) Revenue recognition. Credits shall be made to the appropriate
revenue accounts when such revenue is actually earned. When the billing
cycle encompasses more than one accounting period, adjustments are
necessary to properly recognize the revenue applicable to the current
accounting period under report. Revenues recorded under the terms of
two-tier contracts or other variable payment plans should be deferred,
if necessary, and recognized ratably with expenses over the terms of
the related contract. Any amounts deferred shall be credited to Account
4300, Other long-term liabilities and deferred credits.
(e) Contractual arrangements. Charges and credits resulting from
activities associated with the provisions of regulated
telecommunications services shall be recorded in a manner consistent
with the nature of the underlying contractual arrangements. The charges
and credits resulting from expense sharing or apportionment
arrangements associated with the provision of regulated
telecommunications services shall be recorded in the detailed regulated
accounts. Charges and credits resulting from revenue settlement
agreements or other revenue pooling arrangements associated with the
provision of regulated telecommunications services shall be included in
the appropriate revenue accounts. Those charges and credits resulting
from contractual revenue pooling and/or sharing agreements shall be
recorded in each prescribed revenue account and prescribed subsidiary
record categories thereof to the extent that each is separately
identifiable in the settlement process. It is not intended that
settlement amounts be allocated or generally spread to the individual
revenue accounts where they are not separately identifiable in the
settlement process. When the settlement amounts are not identifiable by
a revenue account they shall be recorded in Account 5060, Other basic
area revenue, 5105, Long distance message revenue, or 5200,
Miscellaneous revenue, as appropriate.
(f) Subsidiary records—jurisdictional subdivisions and interconnection.
Subsidiary record categories shall be maintained in order that the
company may separately report revenues derived from charges imposed
under intrastate, interstate and international tariff filings. Such
subsidiary record categories shall be reported as required by part 43
of this chapter.
(g) Structure of revenue accounts. (1) The revenue section of the
system of accounts shall be organized by revenue group summary account,
account and subsidiary record category (if required).
(2) The revenue section of this system of accounts shall be comprised
of six major groups—Local Network Services Revenues, Network Access
Services Revenues, Long Distance Network Services Revenues,
Miscellaneous Revenues, Nonregulated revenues, and Uncollectible
Revenues, which shall be considered as a revenue group for the purposes
of the construction of the system.
(3) Accounts shall be maintained as prescribed in this Section subject
to the conditions described in section 32.13 of subpart B. In certain
instances, subsidiary record categories may be required below the
account level by this system of accounts or by Commission order.
(h) Local Network Services revenues. Local Network Services revenues
(Accounts 5001 through 5060) shall include revenues derived from the
provision of service and equipment entirely within the basic service
area. That area is defined as the normal boundaries for local calling
plus Extended Area Service (EAS) boundaries as they apply to that
service. It includes revenues derived from both local private network
service and local public network services as well as from customer
premises facilities services. Local revenues include associated charges
such as one-time service connection or termination charges and
secondary features such as call waiting.
(i) Network Access revenues. (1) Network Access revenues (Accounts
5081-5083) shall include revenues derived from the provision of
exchange access services to an interexchange carrier or to an end user
of telecommunications services beyond the exchange carrier's network.
(2) Billing and collections service provided under exchange access
tariffs shall be included in the Miscellaneous Revenues Group.
(j) Long Distance Network Service revenues. Long Distance Network
Service revenues shall include revenues derived from the provision of
services beyond the basic service area, whether message or flat-rate
and including public network switching as well as private.
(k) Miscellaneous revenues. Miscellaneous revenues are those revenues
derived from the provision of regulated products and services provided
under tariff or contract but not contained elsewhere. They shall also
include operating revenue derived from activities performed incident to
the company's tariffed telecommunications operations which, though
non-tariffed, are included in the regulatory process.
(l) Nonregulated revenues. The nonregulated revenue account shall be
used for nonregulated operating revenues when a nonregulated activity
involves the common or joint use of assets or resources in the
provision of regulated and nonregulated products or services as
required in § 32.23(c) of this subpart. Revenues from nontariffed
activities offered incidental to tariffed services may be accounted for
as regulated revenues, provided the activities are outgrowths of
regulated operations and the revenues do not exceed, in the aggregate,
one percent of total revenues for three consecutive years. Such
activities must be listed in the Commission-approved Cost Allocation
Manual for any company required to file a Cost Allocation Manual.
(m) Uncollectible revenues. Uncollectible revenues shall include
amounts originally credited to the revenue accounts which have proved
impracticable of collection.
(n) Revenue accounts to be maintained.
Local network services revenues:
Basic local service revenue
Network access service revenues:
End user revenue 5081
Switched access revenue 5082
Special access revenue 5083
Long distance network services revenues:
Long distance message revenue 5100
Miscellaneous revenue 5200
Nonregulated operating revenue 5280
Uncollectible revenue 5300
[ 51 FR 43499 , Dec. 2, 1986, as amended at 53 FR 49322 , Dec. 7, 1988; 59 FR 46930 , Sept. 13, 1994; 64 FR 50008 , Sept. 15, 1999; 67 FR 5690 , Feb.
6, 2002; 69 FR 53649 , Sept. 2, 2004; 82 FR 20842 , May 4, 2017]
Goto Section: 32.4550 | 32.5000
Goto Year: 2020 |
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