Goto Section: 32.4550 | 32.5000 | Table of Contents
FCC 32.4999
Revised as of October 1, 2008
Goto Year:2007 |
2009
Sec. 32.4999 General.
(a) Purpose of revenue accounts. The revenue accounts are intended to
include the actual cash inflows (or equivalents) that have or will occur as
a result of the company's ongoing major or central operations during the
period. They will include the revenues which arise from furnishing regulated
telecommunications services to others, from directory advertising, rentals
of telecommunications assets and from providing other services which are
directly associated with the provision of regulated telecommunications
services.
(b) Deductions from revenue. Corrections of overcharges, authorized refunds
of overcollections previously credited to revenue, authorized refunds and
adjustments on account of failure in service, and other corrections shall be
charged to the revenue account previously credited with the amounts
involved.
(c) Commissions. Commissions paid to others or employees in place of
compensation or salaries for services rendered, such as public telephone
commissions, shall be charged to Account 6623, Customer services, and not to
the revenue accounts. Other commissions shall be charged to the appropriate
expense accounts.
(d) Revenue recognition. Credits shall be made to the appropriate revenue
accounts when such revenue is actually earned. When the billing cycle
encompasses more than one accounting period, adjustments are necessary to
properly recognize the revenue applicable to the current accounting period
under report. Revenues recorded under the terms of two-tier contracts or
other variable payment plans should be deferred, if necessary, and
recognized ratably with expenses over the terms of the related contract. Any
amounts deferred shall be credited to Account 4300, Other long-term
liabilities and deferred credits.
(e) Contractual arrangements. Charges and credits resulting from activities
associated with the provisions of regulated telecommunications services
shall be recorded in a manner consistent with the nature of the underlying
contractual arrangements. The charges and credits resulting from expense
sharing or apportionment arrangements associated with the provision of
regulated telecommunications services shall be recorded in the detailed
regulated accounts. Charges and credits resulting from revenue settlement
agreements or other revenue pooling arrangements associated with the
provision of regulated telecommunications services shall be included in the
appropriate revenue accounts. Those charges and credits resulting from
contractual revenue pooling and/or sharing agreements shall be recorded in
each prescribed revenue account and prescribed subsidiary record categories
thereof to the extent that each is separately identifiable in the settlement
process. It is not intended that settlement amounts be allocated or
generally spread to the individual revenue accounts where they are not
separately identifiable in the settlement process. When the settlement
amounts are not identifiable by a revenue account they shall be recorded in
Account 5060, Other basic area revenue, 5105, Long distance message revenue,
or 5200, Miscellaneous revenue, as appropriate.
(f) Subsidiary records—jurisdictional subdivisions and interconnection.
Subsidiary record categories shall be maintained in order that the company
may separately report revenues derived from charges imposed under
intrastate, interstate and international tariff filings. Class A carriers
shall also maintain subsidiary record categories in order that the companies
may separately report interconnection revenues derived from the following
categories: Unbundled network element revenues, Resale revenues, Reciprocal
compensation revenues, and Other interconnection revenues. Such subsidiary
record categories shall be reported as required by part 43 of this
Commission's Rules and Regulations.
(g) Structure of revenue accounts. (1) The revenue section of the system of
accounts shall be organized by revenue group summary account, account and
subsidiary record category (if required).
(2) The revenue section of this system of accounts shall be comprised of six
major groups—Local Network Services Revenues, Network Access Services
Revenues, Long Distance Network Services Revenues, Miscellaneous Revenues,
Nonregulated revenues, and Uncollectible Revenues, which shall be considered
as a revenue group for the purposes of the construction of the system.
(3) Accounts shall be maintained as prescribed in this Section subject to
the conditions described in section 32.13 of subpart B. In certain
instances, subsidiary record categories may be required below the account
level by this system of accounts or by Commission order.
(h) Local Network Services revenues. Local Network Services revenues
(Accounts 5001 through 5060) shall include revenues derived from the
provision of service and equipment entirely within the basic service area.
That area is defined as the normal boundaries for local calling plus
Extended Area Service (EAS) boundaries as they apply to that service. It
includes revenues derived from both local private network service and local
public network services as well as from customer premises facilities
services. Local revenues include associated charges such as one-time service
connection or termination charges and secondary features such as call
waiting.
(i) Network Access revenues. (1) Network Access revenues (Accounts
5081–5083) shall include revenues derived from the provision of exchange
access services to an interexchange carrier or to an end user of
telecommunications services beyond the exchange carrier's network.
(2) Billing and collections service provided under exchange access tariffs
shall be included in the Miscellaneous Revenues Group.
(j) Long Distance Network Service revenues. Long Distance Network Service
revenues shall include revenues derived from the provision of services
beyond the basic service area, whether message or flat-rate and including
public network switching as well as private.
(k) Miscellaneous revenues. Miscellaneous revenues are those revenues
derived from the provision of regulated products and services provided under
tariff or contract but not contained elsewhere. They shall also include
operating revenue derived from activities performed incident to the
company's tariffed telecommunications operations which, though non-tariffed,
are included in the regulatory process.
(l) Nonregulated revenues. The nonregulated revenue account shall be used
for nonregulated operating revenues when a nonregulated activity involves
the common or joint use of assets or resources in the provision of regulated
and nonregulated products or services as required in Sec. 32.23(c) of this
subpart. Revenues from nontariffed activities offered incidental to tariffed
services may be accounted for as regulated revenues, provided the activities
are outgrowths of regulated operations and the revenues do not exceed, in
the aggregate, one percent of total revenues for three consecutive years.
Such activities must be listed in the Commission-approved Cost Allocation
Manual for any company required to file a Cost Allocation Manual.
(m) Uncollectible revenues . Uncollectible revenues shall include amounts
originally credited to the revenue accounts which have proved impracticable
of collection.
(n) Revenue accounts to be maintained.
Account title Class A
account Class B
account
Local network services revenues:
Basic local service revenue 5000
Basic area revenue 5001
Private line revenue 5040
Other basic area revenue 5060
Network access service revenues:
End user revenue 5081 5081
Switched access revenue 5082 5082
Special access revenue 5083 5083
Long distance network services revenues:
Long distance message revenue 5100 5100
Miscellaneous revenues:
Miscellaneous revenue 5200 5200
Directory revenue 5230
Nonregulated revenues:
Nonregulated operating revenue 5280 5280
Uncollectible revenues:
Uncollectible revenue 5300 5300
[ 51 FR 43499 , Dec. 2, 1986, as amended at 53 FR 49322 , Dec. 7, 1988; 59 FR 46930 , Sept. 13, 1994; 64 FR 50008 , Sept. 15, 1999; 67 FR 5690 , Feb. 6,
2002; 69 FR 53649 , Sept. 2, 2004]
Goto Section: 32.4550 | 32.5000
Goto Year: 2007 |
2009
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