95-13876. Uniform System of Accounts to Raise the Expense Limit for Certain Items of Equipment

[Federal Register Volume 60, Number 109 (Wednesday, June 7, 1995)]
[Proposed Rules]
[Pages 30058-30059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-13876]



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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 32

[CC Docket No. 95-60; FCC 95-182]


Uniform System of Accounts to Raise the Expense Limit for Certain 
Items of Equipment

AGENCY: Federal Communications Commission.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Commission has adopted a Notice of Proposed Rulemaking 
(``NPRM'') which proposes to amend its rules regarding Uniform System 
of Accounts for Class A and Class B Telephone Companies to Raise the 
Expense Limit for Certain Items of Equipment from $500 to $750. This 
action is taken to recognize the effects of inflation, the increased 
competitive environment, and the rapid technological changes that have 
occurred since the Commission last changed the expense limit in 1988.

DATES: Comments are to be filed on or before July 24, 1995; reply 
comments are to be filed on or before August 8, 1995.

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

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

SUPPLEMENTARY INFORMATION: This is a synopsis of the Commission's 
Notice of Proposed Rulemaking in CC Docket No. 95-60, adopted May 2, 
1995 and released May 31, 1995. The complete text of this NPRM is 
available for inspection and copying during normal business hours in 
the FCC Dockets Branch (Room 230), 1919 M Street, N.W., Washington, 
D.C. 20554, and may also be purchased from the Commission's copy 
contractor, International Transcription Service, Inc. at 2100 M Street, 
N.W., Suite 140, Washington, D.C. 20037, or call [phone].

Synopsis of Notice of Proposed Rulemaking

    1. This NPRM proposes to amend Section 32.2000(a)(4), of Part 32, 
Uniform System of Accounts for Class A and Class B Telephone Companies 
by raising the expense limit for certain items of equipment from $500 
to $750. The Commission seeks comments on this proposal.
    2. The Commission also seeks comments on whether carriers should be 
permitted to amortize the undepreciated, embedded assets covered by 
such an amendment to our rules, and if so, over what period of 
time. [[Page 30059]] 
    3. The Commission also seeks comments on whether the proposed 
expense limit change is an economic cost and what effect, if any, on 
carriers' cash flow it may have that would qualify this accounting 
change for exogenous treatment under Price Cap regulation.
    4. Accordingly, it is ordered that, pursuant to Section 4(i), 4(j) 
and 220 of the Communications Act of 1934, as amended, 47 U.S.C. 
154(i), 154(j) and 220, Notice is hereby given of the proposed 
amendment to Part 32 of the Commission's rules, 47 CFR part 32, as 
described below. In conjunction with this notice, we delegate authority 
to the Chief, Common Carrier Bureau to request and obtain from the 
Regional Bell Operating Companies and GTE any data necessary to 
evaluate the possible revenue requirement impact of the proposed 
change.

List of Subjects in 47 CFR Part 32

    Uniform System of Accounts.

Federal Communications Commission.
LaVera F. Marshall,
Acting Secretary.

Rule Changes

    Part 32 of Title 47 of the CFR is proposed to be amended as 
follows:

PART 32--UNIFORM SYSTEM OF ACCOUNTS FOR TELECOMMUNICATIONS 
COMPANIES

    1. The authority citation for part 32 continues to read as follows:

    Authority: secs. 4(i), 4(j) and 220 as amended; 47 U.S.C. 
154(i), 154(j) and 220 unless otherwise noted.

    2. Paragraph 32.2000(a)(4) is revised to read as follows:


Sec. 32.2000  Instructions for telecommunications plant accounts.

    (a) * * *
    (4) The cost of individual items of equipment, classifiable to 
Accounts 2112, Motor Vehicles; 2113, Aircraft; 2114, Special Purpose 
Vehicles; 2115, Garage Work Equipment; 2116, Other Work Equipment; 
2122, Furniture; 2123, Office Equipment; and 2124, General Purpose 
Computers, costing $750 or less or having a useful life less than one 
year shall be charged to the applicable Plant Specific Operating 
Expense accounts. If the aggregate investment in the items is 
relatively large at the time of acquisition, such amounts shall be 
maintained in an applicable material and supplies account until items 
are used.
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[FR Doc. 95-13876 Filed 6-6-95; 8:45 am]
BILLING CODE 6712-01-M