Goto Section: 32.5300 | 32.6110 | Table of Contents
Revised as of September 1, 2021
Goto Year:2020 |
§ 32.5999 General.
(a) Structure of the expense accounts. (1) The expense section of the
system of accounts shall be organized by expense group summary account,
and subsidiary record category (if required).
(2) The expense section of this system of accounts shall be comprised
of four major expense groups—Plant Specific Operations, Plant
Nonspecific Operations, Customer Operations and Corporate Operations.
Expenses to be recorded in Plant Specific and Plant Nonspecific
Operations Expense Groups generally reflect cost associated with the
various kinds of equipment identified in the plant asset accounts.
Expenses to be recorded in the Customer Operations and Corporate
Operations accounts reflect the costs of, or are associated with,
functions performed by people, irrespective of the organization in
which any particular function is performed.
(3) Accounts shall be maintained as prescribed in this section subject
to the conditions described in § 32.13 in subpart B. Subsidiary record
categories may be required below the account level by this system of
accounts or by Commission order.
(b) Plant Specific Operations Expense. (1) The Plant Specific
Operations Expense Accounts, 6110 through 6441, are used to record
costs related to specific kinds of telecommunications plant.
(2) The Plant Specific Operations Expense accounts predominantly mirror
the telecommunications plant in service detail accounts and are
numbered consistently with them; the first digit of the expense account
being six (6) and the remaining digits being the same as the last three
numbers of the related plant account. In classifying Plant Specific
Operations expenses, the text of the corresponding plant account should
be consulted to ensure appropriateness.
(3) The Plant Specific Operations Expense accounts shall include the
costs of inspecting, testing (except as specified in Account 6533,
Testing Expense) and reporting on the condition of telecommunications
plant to determine the need for repairs, replacements, rearrangements
and changes; performing routine work to prevent trouble (except as
specified in Account 6533), replacing items of plant other than
retirement units; rearranging and changing the location of plant not
retired; repairing material for reuse; restoring the condition of plant
damaged by storms, floods, fire or other casualties (other than the
cost of replacing retirement units); inspecting after repairs have been
made; and receiving training to perform these kinds of work. Also
included are the costs of direct supervision (immediate of first-level)
and office support of this work.
(4) In addition to the activities specified in paragraph (b)(3) of this
section, the appropriate Plant Specific Operations Expense accounts
shall include the cost of personnel whose principal job is the
operation of plant equipment, such as general purpose computer
operators, aircraft pilots, chauffeurs and shuttle bus drivers.
However, when the operation of equipment is performed as part of other
identifiable functions (such as the use of office equipment, capital
tools or motor vehicles), the operators' cost shall be charged to
accounts appropriate for those functions. (For costs of operator
services personnel, see Accounts 6621, Call completion services, and
6622, Number services, and for costs of test board personnel see
(c) Plant nonspecific operations expense. The Plant Nonspecific
Operations Expense accounts shall include expenses related to property
held for future telecommunications use, provisioning expenses, network
operations expenses, and depreciation and amortization expenses.
Accounts in this group (except for Account 6540, Access expense, and
Accounts 6560 through 6565) shall include the costs of performing
activities described in narratives for individual accounts. These costs
shall also include the costs of supervision and office support of these
(d) Customer Operations Expense. The Customer Operations Expense
accounts shall include the cost of performing customer related
marketing and services activities described in narratives for
individual accounts. These costs shall also include the costs of
supervision, office support and training for these activities.
(e) Corporate Operations Expense. The Corporate Operations Expense
accounts shall include the costs of performing executive and planning
activities and general and administrative activities described in
narratives for individual accounts. These costs shall also include the
costs of supervision, office support and training for these activities.
(f) Reimbursements. Reimbursements of actual costs incurred in
connection with joint operations or projects repairing plant due to
damages by others, and obligations to make changes in
telecommunications plant (such as highway relocations), shall be
credited to the accounts originally charged.
(g) Expense accounts to be maintained.
Income Statement Accounts
Plant specific operations expense:
Network support expense 6110
General support expenses 6120
Central office switching expense 6210
Operators system expense 6220
Central office transmission expenses 6230
Information origination/termination expense 6310
Cable and wire facilities expenses 6410
Plant nonspecific operations expense:
Other property plant and equipment expenses 6510
Network operations expenses 6530
Access expense 6540
Depreciation and amortization expenses 6560
Customer operations expense:
Corporate operations expense:
General and administrative 6720
Provision for uncollectible notes receivable 6790
[ 51 FR 43499 , Dec. 2, 1986, as amended at 52 FR 7580 , Mar. 12, 1987; 64 FR 50008 , Sept. 15, 1999; 65 FR 16335 , Mar. 28, 2000; 67 FR 5694 , Feb.
6, 2002; 69 FR 53651 , Sept. 2, 2004; 82 FR 20842 , May 4, 2017]
Goto Section: 32.5300 | 32.6110
Goto Year: 2020 |
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