Collapse to view only § 32.6613 - Product advertising.
- § 32.5999 - General.
- § 32.6110 - Network support expenses.
- § 32.6112 - Motor vehicle expense.
- § 32.6113 - Aircraft expense.
- § 32.6114 - Tools and other work equipment expense.
- § 32.6120 - General support expenses.
- § 32.6121 - Land and building expense.
- § 32.6122 - Furniture and artworks expense.
- § 32.6123 - Office equipment expense.
- § 32.6124 - General purpose computers expense.
- § 32.6210 - Central office switching expenses.
- § 32.6211 - Non-digital switching expense.
- § 32.6212 - Digital electronic switching expense.
- § 32.6220 - Operator systems expense.
- § 32.6230 - Central office transmission expense.
- § 32.6231 - Radio systems expense.
- § 32.6232 - Circuit equipment expense.
- § 32.6310 - Information origination/termination expenses.
- § 32.6311 - Station apparatus expense.
- § 32.6341 - Large private branch exchange expense.
- § 32.6351 - Public telephone terminal equipment expense.
- § 32.6362 - Other terminal equipment expense.
- § 32.6410 - Cable and wire facilities expenses.
- § 32.6411 - Poles expense.
- § 32.6421 - Aerial cable expense.
- § 32.6422 - Underground cable expense.
- § 32.6423 - Buried cable expense.
- § 32.6424 - Submarine and deep sea cable expense.
- § 32.6426 - Intrabuilding network cable expense.
- § 32.6431 - Aerial wire expense.
- § 32.6441 - Conduit systems expense.
- § 32.6510 - Other property, plant and equipment expenses.
- § 32.6511 - Property held for future telecommunications use expense.
- § 32.6512 - Provisioning expense.
- § 32.6530 - Network operations expense.
- § 32.6531 - Power expense.
- § 32.6532 - Network administration expense.
- § 32.6533 - Testing expense.
- § 32.6534 - Plant operations administration expense.
- § 32.6535 - Engineering expense.
- § 32.6540 - Access expense.
- § 32.6560 - Depreciation and amortization expenses.
- § 32.6561 - Depreciation expense—telecommunications plant in service.
- § 32.6562 - Depreciation expense—property held for future telecommunications use.
- § 32.6563 - Amortization expense—tangible.
- § 32.6564 - Amortization expense—intangible.
- § 32.6565 - Amortization expense—other.
- § 32.6610 - Marketing.
- § 32.6611 - Product management and sales.
- § 32.6613 - Product advertising.
- § 32.6620 - Services.
- § 32.6621 - Call completion services.
- § 32.6622 - Number services.
- § 32.6623 - Customer services.
- § 32.6720 - General and administrative.
- § 32.6790 - Provision for uncollectible notes receivable.
§ 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 Account 6533.)
(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 activities.
(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.
| Account title | 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: | Marketing | 6610 | Services | 6620 | Corporate operations expense: | General and administrative | 6720 | Provision for uncollectible notes receivable | 6790 |
|---|
§ 32.6110 - Network support expenses.
(a) Companies shall use this account for expenses of the type and character detailed in Accounts 6112 through 6114.
(b) Credits shall be made to this account by companies for amounts transferred to Construction and/or other Plant Specific Operations Expense accounts. These amounts shall be computed on the basis of direct labor hours.
§ 32.6112 - Motor vehicle expense.
(a) This account shall include costs of fuel, lubrications, license and inspection fees, washing, repainting, and minor accessories. Also included are the costs of personnel whose principal job is operating motor vehicles, such as chauffeurs and shuttle bus drivers. The costs of users of motor vehicles whose principal job is not the operation of motor vehicles shall be charged to accounts appropriate for the activities performed.
(b) Credits shall be made to this account for amounts transferred to Construction and/or to other Plant Specific Operations Expense accounts. These amounts shall be computed on the basis of direct labor hours.
§ 32.6113 - Aircraft expense.
(a) This account shall include such costs as aircraft fuel, flight crews, mechanics and ground crews, licenses and inspection fees, washing, repainting, and minor accessories.
(b) Credits shall be made to this account for amounts transferred to Construction and/or to other Plant Specific Operations Expense accounts. These amounts shall be computed on the basis of direct labor hours.
§ 32.6114 - Tools and other work equipment expense.
(a) This account shall include costs incurred in connection with special purpose vehicles, garage work equipment and other work equipment included in Account 2114, Tools and other work equipment. This account shall be charged with costs incurred in connection with the work equipment itself. This account shall also include such costs as fuel, licenses and inspection fees, washing, repainting and minor accessories. The costs of using garage work equipment to maintain motor vehicles shall be charged to Account 6112, Motor vehicles expense. This account shall not be charged with the costs of operators of special purpose vehicles and other work equipment. The costs of operators of this equipment shall be charged to accounts appropriate for the activities performed.
(b) Credits shall be made to this account for amounts related to special purpose vehicles and other work equipment transferred to Construction and/or to other Plant Specific Operations Expense accounts. These amounts shall be computed on the basis of direct labor hours.
§ 32.6120 - General support expenses.
Companies shall use this account for expenses of the type and character detailed in Accounts 6121 through 6124.
§ 32.6121 - Land and building expense.
(a) This account shall include expenses associated with land and buildings (excluding amortization of leasehold improvements). This account shall also include janitorial service, cleaning supplies, water, sewage, fuel and guard service, and electrical power.
(b) The cost of electrical power used to operate the telecommunications network shall be charged to Account 6531, Power Expense, and the cost of separately metered electricity used for operating specific types of equipment, such as computers, shall be charged to the expense account appropriate for such use.
§ 32.6122 - Furniture and artworks expense.
This account shall include expenses associated with furniture and artworks.
§ 32.6123 - Office equipment expense.
This account shall be charged only with costs incurred in connection with the office equipment itself. The costs of operators of this equipment shall be charged to accounts appropriate for the activities performed.
§ 32.6124 - General purpose computers expense.
This account shall include the costs of personnel whose principal job is the physical operation of general purpose computers and the maintenance of operating systems. This excludes the cost of preparation of input data or the use of outputs which are chargeable to the accounts appropriate for the activities being performed. Also excluded are costs incurred in planning and maintaining application systems and databases for general purpose computers. (See also § 32.6720, General and administrative.) Separately metered electricity for general purpose computers shall also be included in this account.
§ 32.6210 - Central office switching expenses.
Class B telephone companies shall use this account for expenses of the type and character required of Class A companies in Accounts 6211 through 6212.
§ 32.6211 - Non-digital switching expense.
This account shall include expenses associated with non-digital electronic switching and electro-mechanical switching.
§ 32.6212 - Digital electronic switching expense.
(a) This account shall include expenses associated with digital electronic switching. Digital electronic switching expenses shall be maintained in the following subaccounts: 6212.1 Circuit, 6212.2 Packet.
(b) This subaccount 6212.1 Circuit shall include expenses associated with digital electronic switching equipment used to provide circuit switching.
(c) This subaccount 6212.2 Packet shall include expenses associated with digital electronic switching equipment used to provide packet switching.
§ 32.6220 - Operator systems expense.
This account shall include expenses associated with operator systems equipment.
§ 32.6230 - Central office transmission expense.
Companies shall use this account for expenses of the type and character detailed in Accounts 6231 and 6232.
§ 32.6231 - Radio systems expense.
This account shall include expenses associated with radio systems.
§ 32.6232 - Circuit equipment expense.
(a) This account shall include expenses associated with circuit equipment. Circuit equipment expenses shall be maintained in the following subaccounts: 6232.1 Electronic, 6232.2 Optical.
(b) This subaccount 6232.1 Electronic shall include expenses associated with electronic circuit equipment.
(c) This subaccount 6232.2 Optical shall include expenses associated with optical circuit equipment.
§ 32.6310 - Information origination/termination expenses.
Companies shall use this account for expenses of the type and character detailed in Accounts 6311 through 6362.
§ 32.6311 - Station apparatus expense.
This account shall include expenses associated with station apparatus. Expenses associated with company internal use communication equipment shall be recorded in Account 6123, Office Equipment Expense.
§ 32.6341 - Large private branch exchange expense.
This account shall include expenses associated with large private branch exchanges. Expenses associated with company internal use communication equipment shall be recorded in Account 6123, Office Equipment Expense.
§ 32.6351 - Public telephone terminal equipment expense.
This account shall include expenses associated with public telephone terminal equipment.
§ 32.6362 - Other terminal equipment expense.
This account shall include expenses associated with other terminal equipment.
§ 32.6410 - Cable and wire facilities expenses.
Companies shall use this account for expenses of the type and character detailed in Accounts 6411 through 6441.
§ 32.6411 - Poles expense.
This account shall include expenses associated with poles.
§ 32.6421 - Aerial cable expense.
(a) This account shall include expenses associated with aerial cable.
(b) Subsidiary record categories shall be maintained as provided in § 32.2421(a) of subpart C.
§ 32.6422 - Underground cable expense.
(a) This account shall include expenses associated with underground cable.
(b) Subsidiary record categories shall be maintained as provided in § 32.2422(a) of subpart C.
§ 32.6423 - Buried cable expense.
(a) This account shall include expenses associated with buried cable.
(b) Subsidiary record categories shall be maintained as provided in § 32.2423(a) of subpart C.
§ 32.6424 - Submarine and deep sea cable expense.
(a) This account shall include expenses associated with submarine and deep sea cable.
(b) Subsidiary record categories shall be maintained as provided in § 32.2424.
§ 32.6426 - Intrabuilding network cable expense.
(a) This account shall include expenses associated with intrabuilding network cable.
(b) Subsidiary record categories shall be maintained as provided in § 32.2426(a) of subpart C.
§ 32.6431 - Aerial wire expense.
This account shall include expenses associated with aerial wire.
§ 32.6441 - Conduit systems expense.
This account shall include expenses associated with conduit systems.
§ 32.6510 - Other property, plant and equipment expenses.
Companies shall use this account for expenses of the type and character detailed in Accounts 6511 and 6512.
§ 32.6511 - Property held for future telecommunications use expense.
This account shall include expenses associated with property held for future telecommunications use.
§ 32.6512 - Provisioning expense.
(a) This account shall include costs incurred in provisioning material and supplies, including office supplies. This includes receiving and stocking, filling requisitions from stock, monitoring and replenishing stock levels, delivery of material, storage, loading or unloading and administering the reuse or refurbishment of material. Also included are adjustments resulting from the periodic inventory of material and supplies.
(b) Credits shall be made to this account for amounts transferred to construction and/or to Plant Specific Operations Expense. These costs are to be cleared by adding to the cost of material and supplies a suitable loading charge.
§ 32.6530 - Network operations expense.
Companies shall use this account for expenses of the type and character detailed in Accounts 6531 through 6535.
§ 32.6531 - Power expense.
This account shall include the cost of electrical power used to operate the telecommunications network.
§ 32.6532 - Network administration expense.
This account shall include costs incurred in network administration. This includes such activities as controlling traffic flow, administering traffic measuring and monitoring devices, assigning equipment and load balancing, collecting and summarizing traffic data, administering trunking, and assigning interoffice facilities and circuit layout work.
§ 32.6533 - Testing expense.
This account shall include costs incurred in testing telecommunications facilities from a testing facility (test desk or other testing system) to determine the condition of plant on either a routine basis or prior to assignment of the facilities; receiving, recording and analyzing trouble reports; testing to determine the nature and location of reported trouble condition; and dispatching repair persons or otherwise initiating corrective action. (Note also § 32.5999(b)(3) of this subpart.)
§ 32.6534 - Plant operations administration expense.
(a) This account shall include costs incurred in the general administration of plant operations. This includes supervising plant operations (except as specified in § 32.5999(a)(3) of this subpart; planning, coordinating and monitoring plant operations; and performing staff work such as developing methods and procedures, preparing and conducting training (except on-the-job training) and coordinating safety programs.
(b) Credits shall be made to this account for amounts transferred to construction accounts. These amounts shall be computed on the basis of direct labor hours. (See § 32.2000(c)(2)(ii) of subpart C.)
§ 32.6535 - Engineering expense.
(a) This account shall include costs incurred in the general engineering of the telecommunications plant which are not directly chargeable to an undertaking or project. This includes developing input to the fundamental planning process, performing preliminary work or advance planning in connection with potential undertakings, and performing special studies of an engineering nature.
(b) Credits shall be made to this account for amounts transferred to construction accounts. These amounts shall be computed on the basis of direct labor hours. (See § 32.2000(c)(2)(ii) of subpart C.)
§ 32.6540 - Access expense.
(a) This account shall include amounts paid by interexchange carriers or other exchange carriers to another exchange carrier for the provision of carrier's carrier access.
(b) Subsidiary record categories shall be maintained in order that the entity may separately report interstate and intrastate carrier's carrier expense. Such subsidiary record categories shall be reported as required by part 43 of this Commission's Rules and Regulations.
§ 32.6560 - Depreciation and amortization expenses.
Companies shall use this account for expenses of the type and character detailed in Accounts 6561 through 6565.
§ 32.6561 - Depreciation expense—telecommunications plant in service.
This account shall include the depreciation expense of capitalized costs in Accounts 2112 through 2441, inclusive.
§ 32.6562 - Depreciation expense—property held for future telecommunications use.
This account shall include the depreciation expense of capitalized costs included in Account 2002, Property held for future telecommunications use.
§ 32.6563 - Amortization expense—tangible.
This account shall include only the amortization of costs included in Accounts 2681, Capital leases, and 2682, Leasehold improvements.
§ 32.6564 - Amortization expense—intangible.
This account shall include the amortization of costs included in Account 2690, Intangibles.
§ 32.6565 - Amortization expense—other.
(a) This account shall include only the amortization of costs included in Account 2005, Telecommunications plant adjustment.
(b) This account shall also include lump-sum write offs of amounts of plant acquisition adjustment as provided for in § 32.2005(b)(3) of subpart C.
(c) Subsidiary records shall be maintained so as to show the character of the amounts contained in this account.
§ 32.6610 - Marketing.
Companies shall use this account for expenses of the type and character detailed in Accounts 6611 through 6613.
§ 32.6611 - Product management and sales.
This account shall include:
(a) Costs incurred in performing administrative activities related to marketing products and services. This includes competitive analysis, product and service identification and specification, test market planning, demand forecasting, product life cycle analysis, pricing analysis, and identification and establishment of distribution channels.
(b) Costs incurred in selling products and services. This includes determination of individual customer needs, development and presentation of customer proposals, sales order preparation and handling, and preparation of sales records.
§ 32.6613 - Product advertising.
This account shall include costs incurred in developing and implementing promotional strategies to stimulate the purchase of products and services. This excludes nonproduct-related advertising, such as corporate image, stock and bond issue and employment advertisements, which shall be included in the appropriate functional accounts.
§ 32.6620 - Services.
Companies shall use this account for expenses of the type and character detailed in Accounts 6621 through 6623.
§ 32.6621 - Call completion services.
This account shall include costs incurred in helping customers place and complete calls, except directory assistance. This includes handling and recording; intercept; quoting rates, time and charges; and all other activities involved in the manual handling of calls.
§ 32.6622 - Number services.
This account shall include costs incurred in providing customer number and classified listings. This includes preparing or purchasing, compiling, and disseminating those listings through directory assistance or other means.
§ 32.6623 - Customer services.
(a) This account shall include costs incurred in establishing and servicing customer accounts. This includes:
(1) Initiating customer service orders and records;
(2) Maintaining and billing customer accounts;
(3) Collecting and investigating customer accounts, including collecting revenues, reporting receipts, administering collection treatment, and handling contacts with customers regarding adjustments of bills;
(4) Collecting and reporting pay station receipts; and
(5) Instructing customers in the use of products and services.
(b) This account shall also include amounts paid by interexchange carriers or other exchange carriers to another exchange carrier for billing and collection services. Subsidiary record categories shall be maintained in order that the entity may separately report interstate and intrastate amounts. Such subsidiary record categories shall be reported as required by part 43 of this Commission's rules and regulations.
§ 32.6720 - General and administrative.
This account shall include costs incurred in the provision of general and administrative services as follows:
(a) Formulating corporate policy and in providing overall administration and management. Included are the pay, fees and expenses of boards of directors or similar policy boards and all board-designated officers of the company and their office staffs, e.g., secretaries and staff assistants.
(b) Developing and evaluating long-term courses of action for the future operations of the company. This includes performing corporate organization and integrated long-range planning, including management studies, options and contingency plans, and economic strategic analysis.
(c) Providing accounting and financial services. Accounting services include payroll and disbursements, property accounting, capital recovery, regulatory accounting (revenue requirements, separations, settlements and corollary cost accounting), non-customer billing, tax accounting, internal and external auditing, capital and operating budget analysis and control, and general accounting (accounting principles and procedures and journals, ledgers, and financial reports). Financial services include banking operations, cash management, benefit investment fund management (including actuarial services), securities management, debt trust administration, corporate financial planning and analysis, and internal cashier services.
(d) Maintaining relations with government, regulators, other companies and the general public. This includes:
(1) Reviewing existing or pending legislation (see also Account 7300, Nonoperating income and expense, for lobbying expenses);
(2) Preparing and presenting information for regulatory purposes, including tariff and service cost filings, and obtaining radio licenses and construction permits;
(3) Performing public relations and non-product-related corporate image advertising activities;
(4) Administering relations, including negotiating contracts, with telecommunications companies and other utilities, businesses, and industries. This excludes sales contracts (see also Account 6611, Product management and sales); and
(5) Administering investor relations.
(e) Performing personnel administration activities. This includes:
(1) Equal Employment Opportunity and Affirmative Action Programs;
(2) Employee data for forecasting, planning and reporting;
(3) General employment services;
(4) Occupational medical services;
(5) Job analysis and salary programs;
(6) Labor relations activities;
(7) Personnel development and staffing services, including counseling, career planning, promotion and transfer programs;
(8) Personnel policy development;
(9) Employee communications;
(10) Benefit administration;
(11) Employee activity programs;
(12) Employee safety programs; and
(13) Nontechnical training course development and presentation.
(f) Planning and maintaining application systems and databases for general purpose computers.
(g) Providing legal services: This includes conducting and coordinating litigation, providing guidance on regulatory and labor matters, preparing, reviewing and filing patents and contracts and interpreting legislation. Also included are court costs, filing fees, and the costs of outside counsel, depositions, transcripts and witnesses.
(h) Procuring material and supplies, including office supplies. This includes analyzing and evaluating suppliers' products, selecting appropriate suppliers, negotiating supply contracts, placing purchase orders, expediting and controlling orders placed for material, developing standards for material purchased and administering vendor or user claims.
(i) Making planned search or critical investigation aimed at discovery of new knowledge. It also includes translating research findings into a plan or design for a new product or process or for a significant improvement to an existing product or process, whether intended for sale or use. This excludes making routine alterations to existing products, processes, and other ongoing operations even though those alterations may represent improvements.
(j) Performing general administrative activities not directly charged to the user, and not provided in paragraphs (a) through (i) of this section. This includes providing general reference libraries, food services (e.g., cafeterias, lunch rooms and vending facilities), archives, general security investigation services, operating official private branch exchanges in the conduct of the business, and telecommunications and mail services. Also included are payments in settlement of accident and damage claims, insurance premiums for protection against losses and damages, direct benefit payments to or on behalf of retired and separated employees, accident and sickness disability payments, supplemental payments to employees while in governmental service, death payments, and other miscellaneous costs of a corporate nature. This account excludes the cost of office services, which are to be included in the accounts appropriate for the activities supported.
§ 32.6790 - Provision for uncollectible notes receivable.
This account shall be charged with amounts concurrently credited to Account 1170, Receivables.