[Code of Federal Regulations]
[Title 47, Volume 2]
[Revised as of October 1, 2007]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR32.1438]

[Page 401-402]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 32_UNIFORM SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS
COMPANIES--Table of Contents
 
            Subpart C_Instructions for Balance Sheet Accounts
 
Sec. 32.1438  Deferred maintenance and retirements.

    (a) This account shall include such items as:
    (1) The unprovided-for loss in service value of telecommunications 
plant for extraordinary nonrecurring retirement not considered in 
depreciation and the cost of extensive replacements of plant normally 
chargeable to the current period Plant Specific Operations Expense 
accounts. These charges shall be included in this account only upon 
direction or approval from this Commission. However, the company's 
application to this Commission for such approval shall give full 
particulars concerning the property retired, the extensive replacements, 
the amount chargeable to operating expenses and the period over which in 
its judgment the amount of such charges should be distributed.
    (2) Unaudited amounts and other debit balances in suspense that 
cannot be cleared and disposed of until additional information is 
received; the amount, pending determination of loss, of funds on deposit 
with banks which have failed; revenue, expense, and income items held in 
suspense; amounts paid for options pending final disposition.
    (3) Cost of preliminary surveys, plans, investigation, etc., made 
for construction projects under contemplation. If the projects are 
carried out, the preliminary costs shall be included in the cost of the 
plant constructed. If the projects are abandoned, the preliminary costs 
shall be charged to Account 7300, Nonoperating income and expense.
    (4) Cost of evaluations, inventories, and appraisals taken in 
connection with the acquisition or sale of property. If the property is 
subsequently acquired, the preliminary costs shall be accounted for as a 
part of the cost of acquisition, or if it is sold, such costs shall be 
deducted from the sale price in

[[Page 402]]

accounting for the property sold. If purchases or sales are abandoned, 
the preliminary costs included herein (including options paid, if any) 
shall be charged to Account 7300.
    (b) Charges provided for in paragraph (a) of this section shall be 
included in this account only upon direction or approval from this 
Commission. However, the company's application to this Commission for 
such approval shall give full particulars concerning the property 
retired, the extensive replacements, the amount chargeable to operating 
expenses and the period over which in its judgment the amount of such 
charges should be distributed.

[51 FR 43499, Dec. 2, 1986, as amended at 67 FR 5683, Feb. 6, 2002]