Sec.  32.14   Regulated accounts.

   (a) In the context of this part, the regulated accounts shall be interpreted
   to include the investments, revenues and expenses associated with those
   telecommunications  products  and  services to which the tariff filing
   requirements contained in Title II of the Communications Act of 1934, as
   amended, are applied, except as may be otherwise provided by the Commission.
   Regulated telecommunications products and services are thereby fully subject
   to  the  accounting  requirements  as  specified  in  Title  II of the
   Communications  Act of 1934, as amended, and as detailed in subparts A
   through F of this part of the Commission's Rules and Regulations.

   (b)  In  addition  to  those amounts considered to be regulated by the
   provisions  of paragraph (a) of this section, those telecommunications
   products and services to which the tariff filing requirements of the several
   state jurisdictions are applied shall be accounted for as regulated, except
   where  such  treatment  is  proscribed  or otherwise excluded from the
   requirements  pertaining  to regulated telecommunications products and
   services by this Commission.

   (c) In the application of detailed accounting requirements contained in this
   part, when a regulated activity involves the common or joint use of assets
   and resources in the provision of regulated and nonregulated products and
   services, companies shall account for these activities within the accounts
   prescribed in this system for telephone company operations. Assets and
   expenses shall be subdivided in subsidiary records among amounts solely
   assignable  to  nonregulated  activities, amounts solely assignable to
   regulated  activities, and amounts related to assets used and expenses
   incurred jointly or in common, which will be allocated between regulated and
   nonregulated  activities.  Companies  shall submit reports identifying
   regulated and nonregulated amounts in the manner and at the times prescribed
   by this Commission. Nonregulated revenue items not qualifying for incidental
   treatment, as provided in  Sec. 32.4999(l), shall be recorded in Account 5280,
   Nonregulated operating revenue.

   (d) Other income items which are incidental to the provision of regulated
   products and services shall be accounted for as regulated activities.

   (e) All costs and revenues related to the offering of regulated products and
   services  which  result  from  arrangements for joint participation or
   apportionment between two or more telephone companies (e.g., joint operating
   agreements,  settlement  agreements, cost-pooling agreements) shall be
   recorded within the detailed accounts. Under joint operating agreements, the
   creditor  will initially charge the entire expenses to the appropriate
   primary accounts. The proportion of such expenses borne by the debtor shall
   be  credited  by the creditor and charged by the debtor to the account
   initially  charged. Any allowances for return on property used will be
   accounted for as provided in Account 5200, Miscellaneous revenue.

   (f) All items of nonregulated revenue, investment and expense that are not
   properly  includible in the detailed, regulated accounts prescribed in
   subparts A through F of this part, as determined by paragraphs (a) through
   (e) of this section shall be accounted for and included in reports to this
   Commission as specified in  Sec. 32.23 of this subpart.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  52 FR 6560 , Mar. 4, 1987;  53 FR 49321 , Dec. 7, 1988;  67 FR 5679 , Feb. 6, 2002]