47 C.F.R. Subpart F—Instructions For Other Income Accounts
Title 47 - Telecommunication
(a) Structure of the other income accounts. The Other Income Accounts are designed to reflect both operating and nonoperating income items including taxes, extraordinary items and other income and expense items not properly included elsewhere. (b) Other income accounts listing. [67 FR 5697, Feb. 6, 2002] 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] The Operating Tax accounts shall include the taxes arising from the central operations of the company. Class B telephone companies shall use this account for operating taxes of the type and character required of Class A companies in Accounts 7210 through 7250. [67 FR 5698, Feb. 6, 2002] (a) This account shall be charged and Account 4320, Unamortized Operating Investment Tax Credits—Net, shall be credited with investment tax credits generated from qualified expenditures related to regulated operations which the company defers rather than recognizes currently in income. (b) This account shall be credited and Account 4320 shall be charged ratably with the amortization of each year's investment tax credits included in Account 4320 for investment services for ratemaking purposes. Such amortization shall be determined in relation to the period of time used for computing book depreciation on the property with respect to which the tax credits relate. [51 FR 43499, Dec. 2, 1986, as amended at 67 FR 5698, Feb. 6, 2002] (a) This account shall be charged and Account 4070, Income Taxes-Accrued, shall be credited for the amount of Federal Income Taxes for the current period. This account shall also reflect subsequent adjustments to amounts previously charged. (b) Taxes should be accrued each month on an estimated basis and adjustments made as later data becomes available. (c) Tax credits, other than investment tax credits, if normalized, shall be recorded consistent with the accounting for investment tax credits and shall be amortized to income as directed by this Commission. (d) No entries shall be made to this account to reflect interperiod tax allocations. (a) This account shall be charged and Account 4070, Income Taxes—Accrued, shall be credited for the amount of state and local income taxes for the current period. This account shall also reflect subsequent adjustments to amounts previously charged. (b) Taxes should be accrued each month on an estimated basis and adjustments made as later data becomes available. (c) No entries shall be made to this account to reflect interperiod tax allocations. (a) This account shall be charged and Account 4080, Other Taxes—Accrued, shall be credited for all taxes, other than Federal, state and local income taxes and payroll related taxes, related to regulated operations applicable to current periods. Among the items includable in this account are property, gross receipts, franchise and capital stock taxes; this account shall also reflect subsequent adjustments to amounts previously charged. (b) Special assessments for street and other improvements and special benefit taxes, such as water taxes and the like, shall be included in the operating expense accounts or investment accounts, as may be appropriate. (c) Discounts allowed for prompt payment of taxes shall be credited to the account to which the taxes are chargeable. (d) Interest on tax assessments which are not paid when due shall be included in Account 7500, Interest and related items. (e) Taxes paid by the company under tax-free covenants on indebtedness shall be charged to Account 7300, Nonoperating income and expense. (f) Sales and use taxes shall be accounted for, so far as practicable, as part of the cost of the items to which the taxes relate. (g) Taxes on rented telecommunications plant which are borne by the lessee shall be credited by the owner to Account 5200, Miscellaneous revenue, and shall be charged by the lessee to the appropriate Plant Specific Operations Expense account. [51 FR 43499, Dec. 2, 1986, as amended at 67 FR 5698, Feb. 6, 2002] (a) This account shall be charged or credited, as appropriate, with contra entries recorded to the following accounts for income tax expense that has been deferred in accordance with §32.22 of Subpart B.
4100 Net Current Deferred Operating Income Taxes 4340 Net Noncurrent Deferred Operating Income Taxes (b) Subsidiary record categories shall be maintained to distinguish between property and nonproperty related deferrals and so that the company may separately report that amounts contained herein that relate to Federal, state and local income taxes. Such subsidiary record categories shall be reported as required by part 43 of this Commission's Rules and Regulations. This account shall be used to record the results of transactions, events and circumstances affecting the company during a period and which are not operational in nature. This account shall include such items as nonoperating taxes, dividend income and interest income. Whenever practicable, the inflows and outflows associated with a transaction or event shall be matched and the result shown as a net gain or loss. This account shall include the following: (a) Dividends on investments in common and preferred stock, which is the property of the company, whether such stock is owned by the company and held in its treasury, or deposited in trust including sinking or other funds, or otherwise controlled. (b) Dividends received and receivable from affiliated companies accounted for on the equity method shall be included in Account 1410, Other noncurrent assets, as a reduction of the carrying value of the investments. (c) Interest on securities, including notes and other evidences of indebtedness, which are the property of the company, whether such securities are owned by the company and held in its treasury, or deposited in trust including sinking or other funds, or otherwise controlled. It shall also include interest on cash bank balances, certificates of deposits, open accounts, and other analogous items. (d) For each month the applicable amount requisite to extinguish, during the interval between the date of acquisition and date of maturity, the difference between the purchase price and the par value of securities owned or held in sinking or other funds, the income from which is includable in this account. Amounts thus credited or charged shall be concurrently included in the accounts in which the securities are carried. (e) Amounts charged to the telecommunications plant under construction account related to allowance for funds used during construction. (See §32.2000(c)(2)(x).) (f) Gains or losses resulting from: (1) The disposition of land or artworks; (2) The disposition of plant with traffic; (3) The disposition of nonoperating telecommunications plant not previously used in the provision of telecommunications services. (g) All other items of income and gains or losses from activities not specifically provided for elsewhere, including representative items such as: (1) Fees collected in connection with the exchange of coupon bonds for registered bonds; (2) Gains or losses realized on the sale of temporary cash investments or marketable equity securities; (3) Net unrealized losses on investments in current marketable equity securities; (4) Write-downs or write-offs of the book costs of investment in equity securities due to permanent impairment; (5) Gains or losses of nonoperating nature arising from foreign currency exchange or translation; (6) Gains or losses from the extinguishment of debt made to satisfy sinking fund requirements; (7) Amortization of goodwill; (8) Company's share of the earnings or losses of affiliated companies accounted for on the equity method; and (9) The net balance of the revenue from and the expenses (including depreciation, amortization and insurance) of property, plant, and equipment, the cost of which is includable in Account 2006, Nonoperating plant. (h) Costs that are typically given special regulatory scrutiny for ratemaking purposes. Unless specific justification to the contrary is given, such costs are presumed to be excluded from the costs of service in setting rates. (1) Lobbying includes expenditures for the purpose of influencing public opinion with respect to the election or appointment of public officials, referenda, legislation, or ordinances (either with respect to the possible adoption of new referenda, legislation or ordinances, or repeal or modification of existing referenda, legislation or ordinances) or approval, modification, or revocation of franchises, or for the purpose of influencing the decisions of public officials. This also includes advertising, gifts, honoraria, and political contributions. This does not include such expenditures which are directly related to communications with and appearances before regulatory or other governmental bodies in connection with the reporting utility's existing or proposed operations; (2) Contributions for charitable, social or community welfare purposes; (3) Membership fees and dues in social, service and recreational or athletic clubs and organizations; (4) Penalties and fines paid on account of violations of statutes. This account shall also include penalties and fines paid on account of violations of U.S. antitrust statutes, including judgements and payments in settlement of civil and criminal suits alleging such violations; and (5) Abandoned construction projects. (i) Cash discounts on bills for material purchased shall not be included in this account. [67 FR 5698, Feb. 6, 2002] This account shall include taxes arising from activities which are not a part of the central operations of the entity. (a) This account shall be charged and Account 4330, Unamortized nonoperating investment tax credits—net, shall be credited with investment tax credits generated from qualified expenditures related to other operations which the company has elected to defer rather than recognize currently in income. (b) This account shall be credited and Account 4330 shall be charged with the amortization of each year's investment tax credits included in such accounts relating to amortization of previously deferred investment tax credits of other property or regulated property, the amortization of which does not serve to reduce costs of service (but the unamortized balance does reduce rate base) for ratemaking purposes. Such amortization shall be determined with reference to the period of time used for computing book depreciation on the property with respect to which the tax credits relate. (c) This account shall be charged and Account 4070, Income taxes—accrued, shall be credited for the amount of nonoperating Federal income taxes and state and local income taxes for the current period. This account shall also reflect subsequent adjustments to amounts previously charged. (d) Taxes shall be accrued each month on an estimated basis and adjustments made as more current data becomes available. (e) Companies that adopt the flow-through method of accounting for investment tax credits shall reduce the calculated provision in this account by the entire amount of the credit realized during the year. Tax credits, other than investment tax credits, if normalized, shall be recorded consistent with the accounting for investment tax credits. (f) No entries shall be made to this account to reflect interperiod tax allocation. (g) Taxes (both Federal and state) shall be accrued each month on an estimated basis and adjustments made as later data becomes available. (h) This account shall be charged and Account 4080, Other taxes—accrued, shall be credited for all nonoperating taxes, other than Federal, state and local income taxes, and payroll related taxes for the current period. Among the items includable in this account are property, gross receipts, franchise and capital stock taxes. This account shall also reflect subsequent adjustments to amounts previously charged. (i) This account shall be charged or credited, as appropriate, with contra entries recorded to the following accounts for nonoperating tax expenses that has been deferred in accordance with §32.22: 4110 Net Current Deferred Nonoperating Income Taxes, 4350 Net Noncurrent Deferred Nonoperating Income Taxes. (j) Subsidiary record categories shall be maintained to distinguish between property and nonproperty related deferrals and so that the company may separately report the amounts contained herein that relate to Federal, state and local income taxes. Such subsidiary record categories shall be reported as required by part 43 of this chapter. [67 FR 5699, Feb. 6, 2002] (a) This account shall include the current accruals of interest on all classes of funded debt the principal of which is includable in Account 4200, Long term debt and funded debt. It shall also include the interest on funded debt the maturity of which has been extended by specific agreement. This account shall be kept so that the interest on each class of funded debt may be shown separately in the annual reports to this Commission. (b) These accounts shall not include charges for interest on funded debt issued or assumed by the company and held by or for it, whether pledged as collateral or held in its treasury, in special deposits or in sinking or other funds. (c) Interest expressly provided for and included in the face amount of securities issued shall be charged at the time of issuance to Account 1280, Prepayments, and cleared to this account as the term expires to which the interest applies. (d) This account shall also include monthly amortization of balances in Account 4200, Long-term debt and funded debt. (e) This account shall include the interest portion of each capital lease payment. (f) This account shall include the monthly amortization of the balances in Account 1410, Other noncurrent assets. (g) This account shall include all interest deductions not provided for elsewhere, e.g., discount, premium, and expense on notes maturing one year or less from date of issue. (h) A list of representative items of indebtedness, the interest on which is chargeable to this account, follows: (1) Advances from affiliated companies; (2) Advances from nonaffiliated companies and other liabilities; (3) Assessments for public improvements past due; (4) Bond coupons, matured and unpaid; (5) Claims and judgments; (6) Customers' deposits; (7) Funded debt mature, with respect to which a definite agreement as to extension has not been made; (8) Notes payable on demand or maturing one year or less from date of issue; (9) Open accounts; (10) Tax assessments, past due; and (11) Discount, premium, and issuance expense of notes maturing one year or less from date of issue. [67 FR 5699, Feb. 6, 2002] (a) This account is intended to segregate the effects of events or transactions that are extraordinary. Extraordinary events and transactions are distinguished by both their unusual nature and by the infrequency of their occurrence, taking into account the environment in which the company operates. This account shall also include the related income tax effect of the extraordinary items. (b) This account shall be credited and/or charged with nontypical, noncustomary and infrequently recurring gains and/or losses which would significantly distort the current year's income computed before such extraordinary items, if reported other than as extraordinary items. (c) This account shall be charged or credited and Account 4070, Income taxes—accrued, shall be credited or charged for all current income tax effects (Federal, state and local) of extraordinary items. (d) This account shall also be charged or credited, as appropriate, with a contra amount recorded to Account 4350, Net noncurrent deferred nonoperating income taxes or Account 4110, Net current deferred nonoperating income taxes for the income tax effects (Federal, state and local) of extraordinary items that have been deferred in accordance with §32.22. [67 FR 5700, Feb. 6, 2002] Jurisdictional differences and nonregulated income amounts shall be included in Accounts 7910 and 7990. This account shall include the impact on revenues and expenses of the jurisdictional ratemaking practices which vary from those of this Commission. All entries recorded in this account shall be recorded net of the applicable income tax effects and shall be supported by appropriate subsidiary records, where necessary, as provided for in §32.13(e) of subpart B. (a) This account shall be used by those companies who offer nonregulated activities that do not involve the joint or common use of assets or resources used in the provision of both regulated and nonregulated products and services, and which have not established a separate subsidiary for that purpose. (b) All revenue and expenses (including taxes) incurred in these nonregulated activities shall be recorded on separate books of account for such operations. Only the net of the total revenues and total expenses shall be recorded in this account, with a contra debit or credit to account 1406.3. [52 FR 6562, Mar. 4, 1987]
Title 47: Telecommunication
PART 32—UNIFORM SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS COMPANIES
Subpart F—Instructions For Other Income Accounts
§ 32.6999 General.
------------------------------------------------------------------------ Class A Class B Account title account account------------------------------------------------------------------------Other operating income and expense: Other operating income and expense........ 7100 7100Operating taxes: Operating taxes........................... ........... 7200 Operating investment tax credits-net...... 7210 ........... Operating Federal income taxes............ 7220 ........... Operating state and local income taxes.... 7230 ........... Operating other taxes..................... 7240 ........... Provision for deferred operating income 7250 ........... taxes_net................................Nonoperating income and expense: Nonoperating income and expense........... 7300 7300Nonoperating taxes: Nonoperating taxes........................ 7400 7400Interest and related items: Interest and related items................ 7500 7500 Extraordinary items....................... 7600 7600Jurisdictional differences and non-regulated income items: Income effect of jurisdictional ratemaking 7910 7910 difference_net........................... Nonregulated net income................... 7990 7990------------------------------------------------------------------------
§ 32.7100 Other operating income and expenses.
§ 32.7199 Content of accounts.
§ 32.7200 Operating taxes.
§ 32.7210 Operating investment tax credits—net.
§ 32.7220 Operating Federal income taxes.
§ 32.7230 Operating state and local income taxes.
§ 32.7240 Operating other taxes.
§ 32.7250 Provision for deferred operating income taxes—net.
§ 32.7300 Nonoperating income and expense.
§ 32.7400 Nonoperating taxes.
§ 32.7500 Interest and related items.
§ 32.7600 Extraordinary items.
§ 32.7899 Content of accounts.
§ 32.7910 Income effect of jurisdictional ratemaking differences—net.
§ 32.7990 Nonregulated net income.
