Sec.  32.16   Changes in accounting standards.

   (a)  The company's records and accounts shall be adjusted to apply new
   accounting standards prescribed by the Financial Accounting Standards Board
   or successor authoritative accounting standard-setting groups, in a manner
   consistent with generally accepted accounting principles. The change in an
   accounting standard will automatically take effect 90 days after the company
   informs this Commission of its intention to follow the new standard, unless
   the Commission notifies the company to the contrary. Any change adopted
   shall be disclosed in annual reports required by  Sec. 43.21(f) of this chapter
   in the year of adoption.

   (b) The changes in accounting standards which this Commission approves will
   not necessarily be binding on the ratemaking practices of the various state
   commissions.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  64 FR 50007 , Sept. 15, 1999;  67 FR 5679 , Feb. 6, 2002]