INSTRUCTIONS; WORK-ORDER SYSTEM

§ 33.71 Work-order system recommended. (a) It is recommended that each telephone company record all changes such as installations, additions, retirements, or replacements of telephone plant by means of a work-order or joborder system. Projects of less than $200 may be covered by standing work orders.

(b) The work order proper should include the following particulars: (1) A work-order number.

(2) The description and the location of the work to be done (or the pur

chase to be made), the dates between which such work (or purchase) is to be accomplished, the date the work is begun and the date it is finished, together with maps, plans or diagrams, specifications, etc., applicable to the project.

(3) The accumulated charges applicable to each particular job or project and the total cost of the completed project; also the cost of removal. (When any project involves charges to more than one account, the work order should be kept so as to show the amount chargeable to each account. Every charge or credit on work orders should refer to the voucher, journal, or other source from which the entry therein was made.)

(c) The cost of completed projects should be promptly transferred to the telephone plant accounts to which they are chargeable.

PRESCRIBED ACCOUNTS

§ 33.75 Accounts prescribed to be kept. Each Class C company to which this system of accounts is applicable shall keep all of the accounts included in this part which apply to its affairs.

BALANCE-SHEET ACCOUNTS

ASSET SIDE

Investments

§ 33.1000 Telephone plant.

This account shall include the cost of telephone plant used in telephone service and physical property held for imminent use in telephone service under a definite plan for such use at the date of the balance sheet as classified under accounts 1001 to 1077, inclusive.

§ 33.1100 Telephone plant under construction.

(a) This account shall include the cost of construction of telephone plant not ready for service at the date of the balance sheet.

(b) When any telephone plant, the cost of which is included in this account, is completed and ready for service, the cost thereof shall be credited to this account and charged to the telephone plant accounts.

40-135 0-80-20

NOTE: It is not required that this account shall include the cost of construction work which will be completed and ready for service within a short period, such as the installation of station apparatus, and other work to be completed within a period of 1 or 2 months.

§ 33.1200 Plant adjustments.

(a) This account shall include the difference between the cost and the book cost of telephone plant at the effective date of this system of accounts other than differences attributable to contributions of plant includible in account 2800, "Contributions of telephone plant."

(b) This account shall include also such amounts as may be approved or directed by the Commission for inclusion herein with respect to acquisitions of telephone plant.

(c) The amounts recorded in this account with respect to each property acquisition shall be disposed of, written off, or provision shall be made for the amortization thereof, as follows:

(1) Debit amounts may be charged to surplus in whole or in part, or amortized over a reasonable period through charges to account 7100, "Other miscellaneous deductions from income," without further direction or approval by this Commission. Should a carrier desire the disposition of debit amounts in any manner other than as herein provided, it shall request that the Commission (i) approve recommended disposition or (ii) direct appropriate disposition according to the circumstances involved in each transaction.

(2) Credit amounts shall be disposed of in such manner as this Commission may approve or direct.

NOTE A: Disposition as herein provided is for accounting purposes only and shall not be construed as determining or controlling the amount or disposition of the items in a rate or other proceeding nor shall anything contained in paragraph (c) of this section be construed as precluding the Commission from subsequently requiring disposition of such amounts through charges to surplus or from altering a previously determined amortization period.

NOTE B: When these matters involve a carrier subject to both Federal and State regulation, the cooperative procedure heretofore agreed to between Federal and State Commissions shall be invoked. (See the Appendix to Part 1 of this chapter.)

§ 33.1300 Investments in securities.

(a) This account shall include the book cost (see 33.15) of securities issued or assumed by other companies, other than securities held in fund accounts or as temporary investments, and of investment advances to other companies.

(b) The records supporting the entries in this account shall be so maintained as to show separately the book cost of each security owned by the company.

(c) This account shall be so maintained that the securities pledged as collateral security for any of the company's debt, or as security for the performance of contracts, may be shown separately from the securities unpledged.

(d) This account shall be subdivided as follows:

Investments in securities of affiliated companies.

Investments in securities of others.

Investment advances to affiliated companies.

Investment advances to others.

§ 33.1400 Miscellaneous physical property.

This account shall include the amount of the company's investment in physical property other than property the investment in which is includible in accounts 1000, "Telephone plant," 1100, "Telephone plant under construction," and 1200, "Plant adjustments." It shall include the amount of all assessments for the construction of public improvements levied against miscellaneous physical property.

§ 33.1500 Fund accounts.

(a) This account shall include the amount of cash, the book cost (see § 33.15) of securities issued by other companies, the par or stated value of securities issued or assumed by the company, and other assets that are held by trustees or by the company's treasurer in a distinct fund for the purpose of redeeming outstanding obligations or for other specific purposes not provided for elsewhere.

(b) A separate subaccount, with a title that will designate the obligation in support of which the fund was created, shall be maintained for each fund.

NOTE: Securities actually issued or assumed by the company that have been reacquired by it shall be either retired or carried in account 1900, "Reacquired securities," unless it is required by provision of a mortgage, or by the decision of a trustee not subject to control by the accounting company, that they be retained alive in sinking or other funds. When so retained they shall be considered as actually outstanding, but not otherwise.

Current Assets

§ 33.1600 Cash.

This account shall include the amount of cash and other current funds on hand or on deposit in banks. It shall include, also, the amounts of cash on special deposit, other than in fund accounts, to pay dividends and interest, and for other purposes; and amounts advanced to officers, employees, and others as working funds or petty cash funds from which certain expenditures are to be made.

§ 33.1620 Temporary investments.

(a) This account shall include the book cost (see § 33.15) of securities acquired for the purpose of temporarily investing cash, such as time drafts receivable and time loans, bankers' acceptances, United States Treasury certificates, and other similar investments of a temporary character.

(b) This account shall be subdivided as follows:

Securities of affiliated companies.
Securities of others.

amounts due from agents and others authorized to collect operating revenues. The amount of notes held as security for customers' accounts may be carried in this account pending collection.

NOTE: If the company elects to reserve amounts for uncollectible revenues, the amount of such reservations shall be credited to a subaccount hereunder designated account 1650-B, "Reserve for uncollectible revenues-Cr."

§ 33.1660 Accounts receivable.

(a) This account shall include amounts currently due from others not provided for in account 1650, "Due from customers and agents," or account 1670, "Interest and dividends receivable," such as those for traffic settlements, and other items not covering telephone service to customers.

(b) This account shall be subdivided as follows:

Accounts receivable from affiliated companies.

Accounts receivable from officers and employees.

Accounts receivable from others.

§ 33.1670 Interest and dividends receivable.

This account shall include the amount of interest receivable accrued to the date of the balance sheet on bonds, notes, and other commercial paper owned and on loans made, and the amount of declared dividends receivable on stocks owned.

§ 33.1680 Material and supplies.

(a) This account shall include the cost of material and supplies on hand, including plant supplies, tools, fuel, stationery, directory paper stock, and other supplies. So far as practicable, transportation charges shall be included as part of the cost of the particular material to which they relate.

(b) So far as practicable, cash and other discounts on materials shall be deducted in determining the cost of the particular material to which they relate or credited to the account in which the material is charged.

(c) Material recovered in connection with construction, maintenance, or retirement of property shall be accounted for in this account as follows:

(1) Reusable material, at cost, estimated if not known. (The cost of repairing such material shall be charged to account 4010, "Maintenance labor," and account 4020, "Maintenance materials and supplies," as appropriate.)

(2) Scrap and nonusable material, at the estimated sale price.

(d) Inventories of materials and supplies shall be taken at least annually and the necessary adjustments shall be made to bring this account into harmony with the actual inventories. In effecting the adjustments, differences shall be equitably apportioned among the accounts to which material costs have been charged since the preceding inventory or shall be included in account 4190, "Other operation expenses," unless account 9100, "Supply expense-Clearing," is used, in which case the differences shall be included in account 9100.

NOTE: When material and supplies are purchased for immediate use, their costs may be charged directly to such telephone plant or other account as is appropriate.

§ 33.1690 Other current assets.

(a) This account shall include the book cost (see § 33.15) of all current assets that are not includible in accounts 1600 to 1680, inclusive.

(b) The records supporting the entries in this account shall be so maintained that a complete analysis of the entries, including a description of each class of assets, may be shown.

Other Assets

§ 33.1700 Subscriptions to capital stock. (a) This account shall include the amount of any balance owing from subscribers upon legally enforceable subscriptions to capital stock.

(b) The records supporting the entries in this account shall be so maintained that the company can furnish the name and address of each subscriber, the amount and kind of capital stock subscribed for, the date of subscription, the date that each payment is due and the date that each is paid, the nature of each payment (whether cash or other consideration), and any other information that is necessary to make the history of the subscription complete.

Prepayments and Deferred Charges

§ 33.1800 Prepayments.

(a) This account shall include the amount of rents, taxes, insurance, directory expenses, and like expenses paid for in advance of the period to which they apply. As the periods covered by such prepayments expire, this account shall be credited and the proper operating-expense or other accounts shall be charged with the amount applicable to the period. (See § 33.52.)

(b) This account shall be subdivided as follows:

Prepaid rents, Prepaid taxes, Prepaid insurance, Prepaid directory expenses, Other prepayments.

§ 33.1850 Discount on capital stock.

(a) This account shall include the excess of (1) the book amount of capital stock of the company sold or resold plus dividends accrued over (2) the amount of money (or the then current money value of any consideration other than money) received from the stock.

(b) Amounts included herein may, if the company desires to write them off, be credited to this account and charged to account 2900, "Surplus."

(c) When capital stock is reacquired, any amounts included herein applicable to the reacquired stock shall be credited to this account and charged to account 2900. Any difference between (1) the amount paid to reacquire the stock and (2) its book amount shall be charged or credited, as appropriate, to account 2900.

(d) A separate subaccount with appropriate title shall be maintained for the discount applicable to each class and series of capital stock.

NOTE: No amounts shall be included in this account to represent discount on no-par capital stock unless the articles of incorporation or other controlling document prescribes a stated value for such stock.

§ 33.1860 Capital-stock expense.

(a) This account shall include the amount of stock expenses that have not been written off in accordance with paragraphs (b) and (c) of this section.

(b) Amounts included herein may, if the company desires to write them off, be credited to this account and charged to account 2900, “Surplus.”

(c) When capital stock is reacquired, any amounts included herein applicable to the reacquired stock shall be credited to this account and charged to account 2900, "Surplus."

(d) A separate subaccount with appropriate title shall be maintained for the stock expenses applicable to each class and series of capital stock. (See § 33.21.)

§33.1880 Unamortized debt discount and

expense.

(a) This account shall include the excess of (1) the amount of principal of bonds and other forms of long-term debt of the company sold or resold plus interest accrued and plus debt expenses incurred in connection with the issuance and sale or resale, over (2) the amount of money (or the then current money value of any consideration other than money) received for the bonds or other forms of long-term debt.

(b) Amounts included in this account shall be amortized under such a plan as will equitably distribute the amounts over the life of the securities to which the amounts apply. The amortization shall be on a uniform basis, and the amounts thereof shall be charged to account 7400, "Amortization of debt discount and expense."

(c) Amounts included herein may, if the company desires to write them off, be credited to this account and charged to account 2900, “Surplus."

(d) When any bonds or other forms of long-term debt are reacquired, any amounts included herein applicable to the reacquired securities shall be credited to this account and charged to account 2900. Any difference between (1) the amount paid to reacquire the securities plus expenses incurred in connection with the reacquisition and (2) the amount of principal of the securities shall be charged or credited, as appropriate, to account 2900.

(e) A separate subaccount with appropriate title shall be maintained for the discount and expense applicable to each class and series of long-term debt.

§ 33.1890 Other deferred charges.

(a) This account shall include the amount of all deferred charges not provided for elsewhere, including uncleared balances in clearing accounts.

(b) This account shall include also amounts representing extraordinary losses due to destruction of plant by storms, floods, etc., transferred from account 2900. Any difference between (1) under the provisions of § 33.65 (d); and the cost of extensive retirements of station apparatus and inside, drop, and block wires.

(c) Charges provided for in paragraph (b) of this section shall be included in this account only after the permission of the Commission has been obtained, and the amounts shall be distributed over such a period as the Commission may approve or direct. The application to the Commission for such permission and approval or direction shall give full particulars concerning the plant abandoned or retired or the extensive retirements of apparatus or wires, the amounts chargeable to operating expenses, and the period over which in the judgment of the company the amount of such charges should be distributed.

(d) The records supporting the entries in this account shall be so maintained that a complete analysis of the entries, including a description of each class of deferred charges, may be shown.

Reacquired Securities

§ 33.1900 Reacquired securities.

(a) This account shall include the book amount of capital stock and the amount of principal of bonds and other forms of long-term debt issued or assumed by the company that have been reacquired by it and are held under conditions that do not permit the company to treat them as retired or canceled but do permit their resale. It shall not include the cost of securities that are held by trustees or those that are includible in account 1500, "Fund accounts."

(b) Any difference between the amounts includible herein and the amounts paid for such securities (including expenses incurred in connection with their purchase) shall be in