Sec.  32.2682   Leasehold improvements.

   (a) This account shall include the original cost of leasehold improvements
   made to telecommunications plant held under a capital or operating lease,
   which are subject to amortization treatment. This account shall also include
   those improvements which will revert to the lessor.

   (b)  Improvements  to  leased  telecommunications plant which are of a
   relatively minor cost or short life or for which the period of the lease is
   one year or less shall be charged to the account chargeable with the cost of
   repairs to such plant.

   (c) Amounts contained in this account shall be amortized over the term of
   the related lease. For Class A companies, except mid-sized incumbent local
   exchange carriers, the amortization associated with the costs recorded in
   the Leasehold improvement account will be credited directly to this asset
   account, leaving a balance representing the unamortized cost.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  67 FR 5687 , Feb. 6, 2002;  69 FR 53649 , Sept. 2, 2004]