Goto Section: 32.7990 | 32.9000 | Table of Contents
Revised as of October 1, 2011
Goto Year:2010 |
§ 32.9000 Glossary of terms.
When used in this system of accounts:
Accelerated depreciation means a depreciation method or period of time,
including the treatment given cost of removal and gross salvage, used
in calculating depreciation deductions on income tax returns which is
different from the depreciation method or period of time prescribed by
this Commission for use in calculating depreciation expense recorded in
a company's books of account.
Account means a specific element of a chart of accounts used to record,
classify and accumulate similar financial transactions resulting from
the operations of the entity. "Accounts" or "these accounts" refer to
the accounts of this system of accounts.
Accounting system means the total set of interrelated principles,
rules, requirements, definitions, accounts, records, procedures and
mechanisms necessary to operate and evaluate the entity from a
financial perspective. An accounting system generally consists of a
chart of accounts, various parallel subsystems and subsidiary records.
An accounting system is utilized to provide the necessary financial
information to users to meet judiciary and other responsibilities.
Affiliated companies means companies that directly or indirectly
through one or more intermediaries, control or are controlled by, or
are under common control with, the accounting company. See also
Amortization means the systematic recoveries, through ratable charges
to expense, of the cost of assets.
Associated equipment means that equipment which functions with a
specific type of plant or with two (2) or more types of plant, e.g.,
switching equipment, network power equipment, circuit equipment, common
channel network signaling equipment or network operations equipment.
Associated equipment shall be classified to the account appropriate for
the type of equipment with which it is predominately used rather than
on its own characteristics.
Illustrative examples of associated equipment are:
Alarm and signal apparatus
Cable and cable racks
Distributing frames and equipment thereon
Frame and aisle lighting equipment (not permanently attached to the
Relay racks and panels
Basic service area means the minimum specified calling area for which a
tariff is prescribed.
Book cost means the amount at which property is recorded in these
accounts, without deduction of related allowances.
Common carrier or carrier means any person engaged as a common carrier
for hire, in interstate or foreign communication by wire or radio or in
interstate or foreign radio transmission of energy, except where
reference is made to common carriers not subject to this Act; but a
person engaged in radio broadcasting shall not, insofar as such person
is so engaged, be deemed a common carrier.
Company or the company, when not otherwise indicated in the context,
means the accounting entity. It includes such unincorporated entities
which may be subject to the Communications Act of 1934, as amended.
Control (including the terms "controlling," "controlled by," and "under
common control with") means the possession directly or indirectly, of
the power to direct or cause the direction of the management and
policies of a company, whether such power is exercised through one or
more intermediary companies, or alone, or in conjunction with, or
pursuant to an agreement with, one or more other companies, and whether
such power is established through a majority or minority ownership or
voting of securities, common directors, officers, or stockholders,
voting trusts, holding trusts, affiliated companies, contract, or any
other direct or indirect means.
Cost , except as applied to telecommunications plants, franchises, and
patent rights, means the amount of money actually paid (or the current
money value of any consideration other than money exchanged) for
property or services. See also Original Cost.
Cost of removal means the cost of demolishing, dismantling, removing,
tearing down, or otherwise disposing of telecommunications plant and
recovering the salvage, including the cost of transportation and
handling incident thereto.
Depreciation means the loss not restored by current maintenance,
incurred in connection with the consumption or prospective retirement
of telecommunications plant in the course of service from causes which
are known to be in current operation, against which the company is not
protected by insurance, and the effect of which can be forecast with a
reasonable approach to accuracy. Among the causes to be given
consideration are wear and tear, decay, action of the elements,
inadequacy, obsolescence, changes in technology, changes in demand and
requirements of public authorities.
Entity means a legal enterprise (common carrier) engaged in interstate
communications within the meaning of the Communications Act of 1934, as
Group plan, as applied to depreciation accounting, means the plan under
which depreciation charges are accrued upon the basis of the original
cost of all property included in each depreciable plant account, using
the average service life thereof properly weighted, and upon the
retirement of any depreciable property its cost is charged to the
depreciation reserve whether or not the particular item has attained
the average service life.
Indexed revenue threshold for a given year means $100 million, adjusted
for inflation, as measured by the Department of Commerce Gross Domestic
Product Chain-type Price Index (GDP-CPI), for the period from October
19, 1992 to the given year. The indexed revenue threshold for a given
year shall be determined by multiplying $100 million by the ratio of
the annual value of the GDP-CPI for the given year to the estimated
seasonally adjusted GDP-CPI on October 19, 1992. The indexed revenue
threshold shall be rounded to the nearest $1 million. The seasonally
adjusted GDP-CPI on October 19, 1992 is determined to be 100.69.
Intangible property means assets that have no physical existence but
instead have value because of the rights which ownership confers.
Intrasystems means assets consisting of:
(1) PBX and Key System Common Equipment (a switchboard or switching
equipment shared by all stations);
(2) Associated CPE station equipment (usually telephone or Key
Telephone Systems); and
(3) Intrasystem wiring (all cable or wiring and associated components
which connect the common equipment and the station equipment, located
on the customer's side of the demarcation point).
An intrasystem does not include property, plant or equipment which are
not solely dedicated to its operation.
Mid-sized incumbent local exchange carrier is a carrier whose annual
revenue from regulated telecommunications operations equals or exceeds
the indexed revenue threshold and whose revenue when aggregated with
the revenues of any local exchange carrier that it controls, is
controlled by, or with which it is under common control is less than $7
billion (indexed for inflation as measured by the Department of
Commerce Gross Domestic Product Chain-type Price Index (GDP-CPI)).
Minor items, as applied to depreciable telecommunications plant, means
any part or element of such plant, which when removed, (with or without
replacement) does not initiate retirement accounting.
Original cost or cost , as applied to telecommunications plant, rights
of way and other intangible property, means the actual money cost of
(or the current money value of any consideration other than money
exchanged for) property at the time when it was first dedicated to use
by a regulated telecommunications entity, whether the accounting
company or by predecessors.
For the application of this definition to property acquired from
predecessors see § 32.2000(b)(1) of subpart C. Note also the definition
of Cost in this section.
Plant retired means plant which has been removed, sold, abandoned,
destroyed, or otherwise withdrawn from service.
Retirement units , as applied to depreciable telecommunications plant,
means those items of plant which when removed (with or without
replacement) cause the initiation of retirement accounting entries.
Salvage value means the amount received for property retired, if sold,
or if retained for reuse, the amount at which the material recovered is
chargeable to Account 1220, Material and Supplies, or other appropriate
Straight-line method , as applied to depreciation accounting, means the
plan under which the cost of property is charged to operating expenses
and credited to accumulated depreciation through equal annual charges
as nearly as may be during its service life.
Subsidiary record means accumulation of detailed information which is
required by this Commission to be maintained in support of entries to
Subsidiary record categories means those segregations of certain
regulated costs, expenses and revenues which must be maintained and are
subject to specific reporting requirements of this Commission.
Subsystems, parallel mechanisms means processes or procedures which
augment the use of a chart of accounts in the financial operation of
the entity. These subsystems operate on and/or process account and
subsidiary record information for specific purposes.
Telecommunications means any transmission, emission, or reception of
signs, signals, writing, images or sounds or intelligence of any nature
by wire, radio, visual or other electromagnetic systems. This
encompasses the aggregate of several modes of conveying information,
signals or messages over a distance. Included in the telecommunications
industry is the transmitting, receiving, or exchanging of information
among multiple locations. The minimum elements required for the
telecommunications process to occur are a message source, a
transmission medium and a receiver.
Time of installation means the date at which telecommunications plant
is placed in service.
Time of retirement means the date at which telecommunications plant is
retired from service.
Tangible property means assets characterized by physical existence,
such as land, buildings, equipment, furniture, fixtures and tools.
[ 51 FR 43499 , Dec. 2, 1986, as amended at 61 FR 50245 , Sept. 25, 1996;
62 FR 39778 , July 24, 1997; 62 FR 51064 , Sept. 30, 1997; 64 FR 50008 ,
Sept. 15, 1999; 67 FR 5700 , Feb. 6, 2002]
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Goto Section: 32.7990 | 32.9000
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