[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: 47CFR32.23]

[Page 398-399]
 
                       TITLE 47--TELECOMMUNICATION
 
        CHAPTER I--FEDERAL COMMUNICATIONS COMMISSION (CONTINUED)
 
PART 32_UNIFORM SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS COMPANIES--Table of 
 
                     Subpart B_General Instructions
 
Sec. 32.23  Nonregulated activities.

    (a) This section describes the accounting treatment of activities 
classified for accounting purposes as ``nonregulated.'' Preemptively 
deregulated activities and activities (other than incidental activities) 
never subject to regulation will be classified for accounting purposes 
as ``nonregulated.'' Activities that qualify for incidental treatment 
under the policies of this Commission will be classified for accounting 
purposes as regulated activities. Activities that have been deregulated 
by a state will be classified for accounting purposes as regulated 
activities. Activities that have been deregulated at the interstate 
level, but not preemptively deregulated, will be classified for 
accounting purposes as regulated activities until such time as this 
Commission decides otherwise. The treatment of nonregulated activities 
shall differ depending on the extent of the common or joint use of 
assets and resources in the provision of both regulated and nonregulated 
products and services.
    (b) When a nonregulated activity does not involve the joint or 
common use of assets and resources in the provision of both regulated 
and nonregulated products and services, carriers shall account for these 
activities on a separate set of books consistent with instructions set 
forth in Sec. Sec. 32.1406 and 32.7990. Transfers of assets, and sales 
of products and services between the regulated activity and a 
nonregulated activity for which a separate set of books is maintained, 
shall be accounted for in accordance with the rules presented in Sec. 
32.27, Transactions with Affiliates. In the separate set of books, 
carriers may establish whatever detail they deem appropriate beyond what 
is necessary to provide this Commission with the information required in 
Sec. Sec. 32.1406 and 32.7990.
    (c) When a nonregulated activity does involve the joint or common 
use of assets and resources in the provision of regulated and 
nonregulated products

[[Page 399]]

and services, carriers shall account for these activities within 
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 and 
expenses incurred jointly or in common, which will be allocated between 
regulated and nonregulated activities. Carriers 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) of 
this part, shall be recorded in separate subsidiary record categories of 
Account 5280, Nonregulated operating revenue. Amounts assigned or 
allocated to regulated products or services shall be subject to part 36 
of this chapter.

[52 FR 6560, Mar. 4, 1987, as amended at 53 FR 49322, Dec. 7, 1988; 59 
FR 46930, Sept. 13, 1994; 64 FR 50007, Sept. 15, 1999]