NOTE A: House cables are considered to be extensions of aerial cable plant. They do not include the inside wires extending from terminal boxes of house cables to subscribers' stations which are included in account 232, or the cables for subscribers' private branch exchange switchboards which are included in account 232 or account 234, as appropriate. NOTE B: The company's records shall be kept so that the miles of wire in aerial cable may be shown in the annual reports to this Commission. § 31.242:2 Underground cable. This account shall include the original cost of underground cable in conduit and other material used in the construction of such cable. ITEMS (Note § 31.01-8) Bonds and grounds. Cable-feeder, main, subsidiary. Cross-connection wires and fuses installed in the first equipment for service of cable terminals or boxes. Electrolysis surveys made in the course of installing cable. Fuse boxes. Loading coils, building-out condensers, carrier-line filters, and cases therefor. Main-frame-terminating cable extending to outside cable. Negative returns. Permits and privileges for construction (Note also § 31.2–22(b) (7).) Pressure contactor-terminals. Pumping out and cleaning manholes and ducts in underground cable construction work. (See also Note A to this account.) Sleeves. Splicing boxes. Strand, suspension. NOTE A: The cost of pumping water out of manholes and of cleaning manholes and ducts in connection with the maintenance or operation of telephone plant shall be charged to account 602:4 or 602:7, as appropriate. NOTE B: The cost of small cables used in station installations or as drop wires shall be charged to account 232. NOTE C: The cost of cable leading from central office main frames to other central office equipment shall be charged to account 221. NOTE D: House cables are considered to be extensions of aerial cable plant. They do not include the inside wires extending from terminal boxes of house cables to subscribers' stations which are included in account 232, or the cables for subscribers' private branch exchange switchboards which are included in account 232 or account 234, as appropriate. NOTE E: The company's records shall be kept so that the miles of wire in underground cable may be shown in the annual reports to the Commission. § 31.242:3 Buried cable. This account shall include the original cost of buried cable and other material used in the construction of such cable. ITEMS (Note § 81.01-8) Cable-feeder, main. Cable terminals or boxes. Cross-connection wires and fuses installed in the first equipment for service of cable terminals or boxes. Loading coils, building-out condensers, carrier-line filters, and cases therefor. Sleeves. Splicing boxes. Trenching for and burying cable not run in regular conduit. NOTE A: The cost of pumping water out of manholes and of cleaning manholes and ducts in connection with the maintenance or operation of telephone plant shall be charged to account 602:4 or 602:7, as appropriate. NOTE B: The company's records shall be kept so that the miles of wire in buried cable may be shown in the annual reports to this Commission. § 31.242:4 Submarine cable. This account shall include the original cost of submarine cable and other material used in the construction of such cable. ITEMS Cable-feeder, main. Cable terminals or boxes. Loading coils, building-out condensers, carrier-line filters, and cases therefor. Permits and privileges and rights of way for construction. (Note also § 31.2–22(b) (7) and Note F to account 211.) Pressure contactor-terminals. Submarine cable terminal huts. NOTE: The company's records shall be kept so that the miles of wire in submarine cable may be shown in the annual reports to this Commission. § 31.243 Aerial wire. This account shall include the original cost of aerial wire other than drop and block wires, including insulators, tie wires, and other material used in the construction of aerial wire plant. The company shall exercise such precautions as are necessary to prevent credits to ths account for drop and block wires removed. 51-093-66 -10 Loading coils, building-out condensers, carrier-line filters, and cases therefor. Permits and privileges for construction. (Note also § 31.2-22 (b) (7).) Protectors and arresters. Repeating coils. Tie wires. Transposition brackets. Transposition of the circuits in initial construction work and any additions or betterments resulting from transposing or retransposing existing circuits. NOTE: The cost of drop and block wires shall be included in account 232. § 31.244 Underground conduit. This account shall include the original cost of tile, pipe, and other conduit, whether underground, in tunnels or on bridges, and of manholes, handholes, and service boxes, including cable racks and other furnishings thereof, and the cost of riser pipe. It shall include the cost of opening trench and repaving in the construction of such plant and the cost of permits and privileges and rights of way for construction. (Note also § 31.2-22(b) (7) and Note F to account 211.) NOTE A: The cost of protective covering for buried cable, 1. e., cable not run in regular conduit, such as fibre or other material (except when constructed so as to be reusable in place for other cable) and the cost of trenching, manholes, etc., designed specifcally for use in such construction shall be charged to account 242:3. NOTE B: The cost of pipes or other protective covering for underground drop and block wires or service connections shall be included in account 232. medical rooms. Fans, electric, portable. Fire-extinguisher equipment, portable. Motion-picture equipment. Office devices, including addressing, billing, blueprinting, computing, dating, duplicating, mailing, photostat and recording machines, cash registers, check writers, postage meter machines, typewriters, etc. Pianos and phonographs. Radio sets. Racks-magazine, newspaper, umbrella, and clothing. Refrigerators, portable Planers. Pole-treating apparatus, chemical. Tamping and back-filling machines. Testing equipment, portable. Trenching machines. Winches, power. Wire-measuring machines. (See also NOTE A: The cost of chairs, desks, tables, etc., in garages and shops shall be charged to account 261. NOTE B: The cost of testing equipment and tools regularly used in central offices shall be charged to account 221. § 31.276 Telephone plant acquired. This account shall be charged temporarily with the cost of acquisition (1.e., amount of money actually paid or the current money value of any consideration other than money exchanged for telephone plant, together with the preliminary expenses incurred in connection with the acquisition) of telephone plant pending distribution to the primary telephone plant accounts and to other accounts. (Note also §§ 31.2-21 and 31.02-82.) § 31.277 Telephone plant sold. This account shall be credited temporarily with the original cost at the time of retirement of telephone plant sold pending determination of the amounts to be credited to the primary telephone plant accounts. (Note also § 31.2-25 (g).) NOTE: In connection with completing the accounting for telephone plant sold, appropriate adjustments shall be made with respect to any related depreciation accruals. INSTRUCTIONS FOR INCOME ACCOUNTS § 31.3-30 Purpose of income accounts. The income accounts (300 to 343, inclusive) are designed to show as nearly as practicable for each calendar year the total operating revenues and operating expenses of the company; the returns accrued upon securities owned and from property not used in the company's operations; the amounts accrued for taxes, use of moneys, and use of operating properties of others; and reservations and appropriations of income. (Note also §§ 31.01-4 to 31.01-6.) § 31.3-31 Income from sinking and other funds. When interest and other income arising from funds carried in account 104, "Sinking funds," account 136, "Provident funds," or account 137, "Insurance and other funds," (note also account 314) are required by the mortgage or other provisions to be held in the funds, they shall be charged to those accounts. If such funds are represented by a reserve established through reservations of income or earned surplus, amounts so set aside shall be charged to account 342, "Contractual reservations of income," account 343, "Miscellaneous reservations of income," account 414, "Contractual reservations of earned surplus," or account 415, "Miscellaneous reservations of earned surplus," and credited to account 169, "Insurance reserve," account 170, "Provident reserve," account 173, "Employment stabilization reserve," or account 180, "Earned surplus reserved," as may be appropriate. This account shall include the total revenues for the accounting period which are provided for in the operating revenue accounts 500 to 530, inclusive. (Note also § 31.01-2(d).) § 31.301 Operating expenses. This account shall include the total expenses for the accounting period which are provided for in the operating expense accounts 602:1 to 677, inclusive. (Note also § 31.01-2(d).) § 31.302 Rent from lease of operating property. (a) This account shall include rents from the exclusive use of telephone operating property held as a whole and operated by others, such as a complete telephone plant, a complete exchange, or a complete toll system. (b) Rents are creditable to this account whether receivable in cash or disbursed by the lessee in behalf of the company as taxes on the rented property, interest on funded debt, guaranteed dividends on stock, or otherwise. NOTE: The rent from property the cost of which is includible in account 103 shall be included in account 315. § 31.303 Rent for lease of operating property. (a) This account shall include rents for the exclusive use of telephone operating property held as a whole and operated by the company, such as a com plete telephone plant, a complete exchange, or a complete toll system. (b) This account shall include also taxes borne by the lessee of property, the rent for which is chargeable to this account. (c) Rents are chargeable to this account whether payable in cash or disbursed by the lessee in behalf of the lessor as taxes on the rented property, interest on funded debt, guaranteed dividends on stock, or otherwise. NOTE A: If leased telephone plant the rent for which is chargeable to this account is sublet to others, the rent receivable therefrom shall be credited to the account appropriate for rent from owned property of the same class. NOTE B: Rents payable for property used by the company for other than telephone operations shall be included in account 315. NOTE C: Charges for depreciation of telephone operating property leased as a whole and operated by the company shall be included in account 608 or clearing accounts, as appropriate, on the same basis as for owned property (note also § 31.02-81) when the company is responsible for depreciation under the terms of the lease. § 31.304 Investment credits; net. (a) This account shall be charged and account 174, "Other deferred credits," shall be credited with investment credits realized under the Internal Revenue Code when the company has elected to follow a plan of accounting which calls for realized investment credits to be taken into income in proportionate parts determined with reference to the average useful life of the property with respect to which the credits were allowed. (b) This account shall be credited and account 174 shall be charged with the amortization of each year's investment credits included in account 174. Such amortization shall be determined with reference to the average useful life of the property with respect to which the investment credits were allowed. [29 F.R. 6013, May 7, 1964] § 31.305 Operating taxes. (a) This account shall include all Federal, State, county, municipal, and other taxing-district taxes, including franchise taxes payable annually or more frequently, relating to telephone plant, operations, and privileges for the period for which the income account is stated. Taxes accrued through this account prior to their payment shall be credited to account 166, (Note also § 31.2-22 "Taxes accrued." (b) (8).) (b) Taxes on leased telephone plant shall be included in this account by the owner. Any taxes on rented telephone plant which are borne by the lessee shall be appropriately credited by the owner to account 524, "Rent revenues," or account 302, "Rent from lease of operating property," and charged by the lessee to account 671, "Operating rents," or account 303, "Rent for lease of operating property." NOTE A: Taxes other than those on telephone plant, operations, and privileges shall be charged to account 322. NOTE B: Special assessments for street and other improvements and special benefit taxes, such as water taxes and the like, shall be included in the operating expense accounts or investment accounts, as may be appro priate. NOTE C: Discounts allowed for prompt payment of taxes shall be credited to the account to which the taxes are chargeable. NOTE D: Interest on tax assessments which are not paid when due shall be included in account 336. NOTE E: The accounting for taxes on physical property during construction and before the facilities are completed ready for service shall be in accordance with § 31.2-22(b) (8). NOTE F: Taxes paid by the company under tax-free covenants on indebtedness shall be charged to account 340. NOTE G: Sales and use taxes shall be accounted for, so far as practicable, as a part of the cost of the items to which the taxes relate. OTHER INCOME § 31.312 Dividend income. (a) This account shall include dividends on stock, the income from which is the property of the company, whether such stock is owned by the company and held in its treasury, or deposited in trust (except in sinking or other funds, see Note B to this account), or controlled through lease, or otherwise. (b) Dividends shall not be credited to this account before actual collection. unless their payment is reasonably assured by past experience, guaranty, anticipated provisions, or otherwise. NOTE A: These accounts shall not include dividends or other returns on securities 18sued or assumed by the company and held by or for it, whether pledged as collateral, or held in its treasury, in special deposits, or in sinking or other funds. NOTE B: Dividends on stocks of other companies held in sinking or other funds shall be credited to account 314. (a) This account shall include interest on securities, including notes and other evidences of indebtedness, the income from which is the property of the company, whether such securities are owned by the company and held in its treasury, or deposited in trust (except in sinking or other funds, see Note B to this account), or controlled through lease, or otherwise. It shall include also interest on bank balances, certificates of deposits, open accounts, and other analogous items. (b) Interest shall not be credited to this account before actual collection, unless its payment is reasonably assured by past experience, guaranty, anticipated provisions, or otherwise. (c) This account shall be credited with such amounts as are charged to the telephone plant accounts for interest on funds expended for construction purposes, as provided in § 31.2–22(b) (10). (d) There may be included in this account for each month the applicable amount requisite to extinguish, during the interval between the date of acquisition and date of maturity, the difference between the purchase price and the par value of securities owned, the income from which is includible in this account. Amounts thus credited or charged shall be concurrently included in the accounts in which the securities are carried. Any such difference remaining unextinguished at the sale or upon the maturity and satisfaction of such securities shall be cleared to account 413, “Miscellaneous debits to earned surplus," or account 402, "Miscellaneous credits to earned surplus." NOTE A: These accounts shall not include interest or other returns on securities issued or assumed by the company and held by or for it, whether pledged as collateral, or held in its treasury, in special deposits, or in sinking or other funds. NOTE B: Interest on cash and on securities issued by others shall be included in account 314 when such assets are held in sinking or other funds. NOTE C: Cash discounts on bills for material purchased shall not be included in this account. (Note also account 122.) |