95-12109. Proposed Elimination of Detailed Continuing Property Records (``CPRs'') for Certain Support Assets

[Federal Register Volume 60, Number 95 (Wednesday, May 17, 1995)]
[Proposed Rules]
[Page 26402]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-12109]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 32

[DA 95-1027]


Proposed Elimination of Detailed Continuing Property Records 
(``CPRs'') for Certain Support Assets

AGENCY: Federal Communications Commission.

ACTION: Proposed rule; rulemaking notice.

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SUMMARY: The Accounting and Audits Division has released a Public 
Notice seeking comments on a Petition for Rulemaking filed by the 
United States Telephone Association (``USTA'') to eliminate CPRs for 
certain support assets in Part 32 accounts. USTA proposes an 
alternative property record system for these support assets. This will 
enable the Commission to determine whether it should initiate a 
rulemaking proceeding.

DATES: Comments due by July 5, 1995; Replies due by August 1, 1995.

ADDRESSES: Federal Communications Commission, 1919 M Street N.W., 
Washington, D.C. 20554.

FOR FURTHER INFORMATION CONTACT: Debra Weber, Common Carrier Bureau, 
Accounting and Audits Division, [phone].

SUPPLEMENTARY INFORMATION: Released: May 10, 1995.

United States Telephone Association Files a Petition for Rulemaking to 
Amend Part 32 of the Commission's Rules to Eliminate Detailed Property 
Records for Certain Support Assets

Public Comment Invited

    The United States Telephone Association (``USTA'') filed a Petition 
for Rulemaking (``petition''), proposing that the Commission amend Part 
32 of its rules to eliminate detailed continuing property records 
(``CPRs'') for certain support asset accounts. These support assets 
include the items in Accounts 2115, Garage work equipment; 2116, Other 
work equipment; 2122, Furniture; 2123, Office equipment; and the 
personal computers and peripheral equipment in Account 2124, General 
purpose computers. In place of CPRs for those accounts, USTA proposes 
that carriers be permitted to use a vintage amortization level 
(``VAL'') property record system. Under this system, the net book value 
of existing assets in each account would be placed in a VAL group and 
amortized on a straight-line basis over the remaining life that results 
from the asset life chosen from the Commission approved range of lives. 
All new purchases would also be placed in a VAL group for each vintage 
for each account, and amortized in the same manner. When the assets in 
a VAL group are fully amortized, the assets and their associated 
reserves would be removed from the carriers' books. Salvage proceeds 
would be reflected as a decrease in amortization expense, and the cost 
of removal would be reflected as an increase in amortization expense.
    We seek comment on the USTA petition, and we invite parties to 
propose alternatives for simplifying the CPR requirements for these 
support assets. We encourage parties to focus on how USTA's proposal or 
any alternative proposal provides for adequate internal controls to 
safeguard these support assets. We seek comment on what records are 
necessary to ascertain the location, existence, and cost of these 
assets. We also seek comment on how carriers should account for 
retirement of these support assets, and whether these assets should be 
removed from the carrier's books when fully amortized, as USTA 
proposes. Finally, we seek comment from any parties believing that our 
CPR requirements should not be modified for support assets. These 
parties should explain why, and should emphasize what aspects of our 
current CPR requirements are the most useful.
    Parties may file comments on USTA's petition, or propose 
alternatives no later than July 5, 1995. Replies should be filed by 
August 1, 1995. Comments should refer to RM-8640. A copy of each 
pleading should be sent to Debbie Weber, FCC, Common Carrier Bureau, 
2000 L St., N.W., Room 812, Washington, D.C. 20554 and the 
International Transcription Service (ITS), 2100 M St., N.W., Suite 140, 
Washington, D.C. 20037, [phone]. Copies of USTA's petition and 
any comments will be available for public inspection and copying in the 
Office of Public Affairs Reference Center, 1919 M St., N.W., Room 239, 
Washington, D.C. Copies are also available from ITS.
    For further information contact Debbie Weber at [phone].

    Federal Communications Commission.
William F. Caton,
Acting Secretary.
[FR Doc. 95-12109 Filed 5-16-95; 8:45 am]
BILLING CODE 6712-01-M