Sec. 32.11  Classification of companies.

    (a) For accounting purposes, companies are divided into classes as 
follows:
    (1) Class A. Companies having annual revenues from regulated 
telecommunications operations that are equal to or above the indexed 
revenue threshold.
    (2) Class B. Companies having annual revenues from regulated 
telecommunications operations that are less than the indexed revenue 
threshold.
    (b) Class A companies shall keep all the accounts of this system of 
accounts which are applicable to their affairs and are designated as 
Class A accounts. These companies shall also keep Basic Property Records 
in compliance with the requirements of Sec. 32.2000 (e) and (f) of 
subpart C.
    (c) Class B companies shall keep all accounts of this system of 
accounts

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which are applicable to their affairs and are designated as Class B 
accounts. These companies shall also keep Continuing Property Records in 
compliance with the requirements of Secs. 32.2000(e)(7)(A) and 
32.2000(f) of subpart C.
    (d) Class B companies that desire more detailed accounting may adopt 
the accounts prescribed for Class A companies upon the submission of a 
written notification to the Commission.
    (e) The initial classification of a company shall be determined by 
its lowest annual operating revenues for the five immediately preceding 
years. Subsequent changes in classification shall be made when the 
annual operating revenues show a greater or lesser classification for 
five consecutive years. Companies becoming subject to the jurisdiction 
of the Commission and not having revenue data for the five immediately 
preceding years shall estimate the amount of their annual revenues and 
adopt the scheme of accounts appropriate for the amount of such 
estimated revenues.
[ 51 FR 43499 , Dec. 2, 1986, as amended at  61 FR 50245 , Sept. 25, 1996; 
 62 FR 39777 , July 24, 1997]