[Code of Federal Regulations]
[Title 47, Volume 2]
[Revised as of October 1, 2008]
From the U.S. Government Printing Office via GPO Access
[CITE: 47CFR32.2005]

[Page 416-417]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 32_UNIFORM SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS COMPANIES--Table of 
 
            Subpart C_Instructions for Balance Sheet Accounts
 
Sec. 32.2005  Telecommunications plant adjustment.

    (a) This account shall include amounts determined in accordance with 
Sec. 32.2000(b) of this subpart representing the difference between (1) 
the fair market value of the telecommunications plant acquired, plus 
preliminary expenses incurred in connection with the acquisition; and 
(2) the original cost of such plant, governmental franchises and similar 
rights acquired, less the amounts of reserve requirements for 
depreciation and amortization of the property acquired. If the actual 
original cost is not known, the entries in this account shall be based 
upon an estimate of such costs.
    (b) The amounts recorded in this account with respect to each 
property acquisition (except land and artworks) shall be disposed of, 
written off, or provision shall be made for the amortization thereof, as 
follows:
    (1) Debit amounts may be charged in whole or in part, or amortized 
over a reasonable period through charges to Account 7300, Nonoperating 
income and expense, without further direction or approval by this 
Commission. When

[[Page 417]]

specifically approved by this Commission, or when the provisions of 
paragraph (b)(3) of this section apply, debit amounts shall be amortized 
to Account 6565, Amortization expense--other.
    (2) Credit amounts shall be disposed of in such manner as this 
Commission may approve or direct, except for credit amounts referred to 
in paragraph (b)(4) of this section.
    (3) The amortization associated with the costs recorded in the 
Telecommunications plant adjustment account will be charged or credited, 
as appropriate, directly to this asset account, leaving a balance 
representing the unamortized cost.
    (4) Within one year from the date of inclusion in this account of a 
debit or credit amount with respect to a current acquisition, the 
company may dispose of the total amount from an acquisition of telephone 
plant by a lump-sum charge or credit, as appropriate, to Account 6565 
without further approval of this Commission, provided that such amount 
does not exceed $100,000 and that the plant was not acquired from an 
affiliated company.

[51 FR 43499, Dec. 2, 1986, as amended at 67 FR 5685, Feb. 6, 2002; 69 
FR 53648, Sept. 2, 2004]