Goto Section: 32.7990 | 32.9000 | Table of Contents
FCC 32.9000
Revised as of October 1, 2008
Goto Year:2007 |
2009
Sec. 32.9000 Glossary of terms.
When used in this system of accounts:
Accelerated depreciation means a depreciation method or period of time,
including the treatment given cost of removal and gross salvage, used in
calculating depreciation deductions on income tax returns which is different
from the depreciation method or period of time prescribed by this Commission
for use in calculating depreciation expense recorded in a company's books of
account.
Account means a specific element of a chart of accounts used to record,
classify and accumulate similar financial transactions resulting from the
operations of the entity. “Accounts” or “these accounts” refer to the
accounts of this system of accounts.
Accounting system means the total set of interrelated principles, rules,
requirements, definitions, accounts, records, procedures and mechanisms
necessary to operate and evaluate the entity from a financial perspective.
An accounting system generally consists of a chart of accounts, various
parallel subsystems and subsidiary records. An accounting system is utilized
to provide the necessary financial information to users to meet judiciary
and other responsibilities.
Affiliated companies means companies that directly or indirectly through one
or more intermediaries, control or are controlled by, or are under common
control with, the accounting company. See also Control.
Amortization means the systematic recoveries, through ratable charges to
expense, of the cost of assets.
Associated equipment means that equipment which functions with a specific
type of plant or with two (2) or more types of plant, e.g., switching
equipment, network power equipment, circuit equipment, common channel
network signaling equipment or network operations equipment. Associated
equipment shall be classified to the account appropriate for the type of
equipment with which it is predominately used rather than on its own
characteristics.
Illustrative examples of associated equipment are:
Alarm and signal apparatus
Auxiliary framing
Cable and cable racks
Distributing frames and equipment thereon
Frame and aisle lighting equipment (not permanently attached to the
building)
Relay racks and panels
Basic service area means the minimum specified calling area for which a
tariff is prescribed.
Book cost means the amount at which property is recorded in these accounts,
without deduction of related allowances.
Common carrier or carrier means any person engaged as a common carrier for
hire, in interstate or foreign communication by wire or radio or in
interstate or foreign radio transmission of energy, except where reference
is made to common carriers not subject to this Act; but a person engaged in
radio broadcasting shall not, insofar as such person is so engaged, be
deemed a common carrier.
Company or the company, when not otherwise indicated in the context, means
the accounting entity. It includes such unincorporated entities which may be
subject to the Communications Act of 1934, as amended.
Control (including the terms “controlling,” “controlled by,” and “under
common control with”) means the possession directly or indirectly, of the
power to direct or cause the direction of the management and policies of a
company, whether such power is exercised through one or more intermediary
companies, or alone, or in conjunction with, or pursuant to an agreement
with, one or more other companies, and whether such power is established
through a majority or minority ownership or voting of securities, common
directors, officers, or stockholders, voting trusts, holding trusts,
affiliated companies, contract, or any other direct or indirect means.
Cost , except as applied to telecommunications plants, franchises, and
patent rights, means the amount of money actually paid (or the current money
value of any consideration other than money exchanged) for property or
services. See also Original Cost.
Cost of removal means the cost of demolishing, dismantling, removing,
tearing down, or otherwise disposing of telecommunications plant and
recovering the salvage, including the cost of transportation and handling
incident thereto.
Depreciation means the loss not restored by current maintenance, incurred in
connection with the consumption or prospective retirement of
telecommunications plant in the course of service from causes which are
known to be in current operation, against which the company is not protected
by insurance, and the effect of which can be forecast with a reasonable
approach to accuracy. Among the causes to be given consideration are wear
and tear, decay, action of the elements, inadequacy, obsolescence, changes
in technology, changes in demand and requirements of public authorities.
Entity means a legal enterprise (common carrier) engaged in interstate
communications within the meaning of the Communications Act of 1934, as
amended.
Group plan, as applied to depreciation accounting, means the plan under
which depreciation charges are accrued upon the basis of the original cost
of all property included in each depreciable plant account, using the
average service life thereof properly weighted, and upon the retirement of
any depreciable property its cost is charged to the depreciation reserve
whether or not the particular item has attained the average service life.
Indexed revenue threshold for a given year means $100 million, adjusted for
inflation, as measured by the Department of Commerce Gross Domestic Product
Chain-type Price Index (GDP-CPI), for the period from October 19, 1992 to
the given year. The indexed revenue threshold for a given year shall be
determined by multiplying $100 million by the ratio of the annual value of
the GDP-CPI for the given year to the estimated seasonally adjusted GDP-CPI
on October 19, 1992. The indexed revenue threshold shall be rounded to the
nearest $1 million. The seasonally adjusted GDP-CPI on October 19, 1992 is
determined to be 100.69.
Intangible property means assets that have no physical existence but instead
have value because of the rights which ownership confers.
Intrasystems means assets consisting of:
(1) PBX and Key System Common Equipment (a switchboard or switching
equipment shared by all stations);
(2) Associated CPE station equipment (usually telephone or Key Telephone
Systems); and
(3) Intrasystem wiring (all cable or wiring and associated components which
connect the common equipment and the station equipment, located on the
customer's side of the demarcation point).
An intrasystem does not include property, plant or equipment which are not
solely dedicated to its operation.
Mid-sized incumbent local exchange carrier is a carrier whose annual revenue
from regulated telecommunications operations equals or exceeds the indexed
revenue threshold and whose revenue when aggregated with the revenues of any
local exchange carrier that it controls, is controlled by, or with which it
is under common control is less than $7 billion (indexed for inflation as
measured by the Department of Commerce Gross Domestic Product Chain-type
Price Index (GDP-CPI)).
Minor items, as applied to depreciable telecommunications plant, means any
part or element of such plant, which when removed, (with or without
replacement) does not initiate retirement accounting.
Original cost or cost , as applied to telecommunications plant, rights of
way and other intangible property, means the actual money cost of (or the
current money value of any consideration other than money exchanged for)
property at the time when it was first dedicated to use by a regulated
telecommunications entity, whether the accounting company or by
predecessors.
For the application of this definition to property acquired from
predecessors see Sec. 32.2000(b)(1) of subpart C. Note also the definition of
Cost in this section.
Plant retired means plant which has been removed, sold, abandoned,
destroyed, or otherwise withdrawn from service.
Retirement units , as applied to depreciable telecommunications plant, means
those items of plant which when removed (with or without replacement) cause
the initiation of retirement accounting entries.
Salvage value means the amount received for property retired, if sold, or if
retained for reuse, the amount at which the material recovered is chargeable
to Account 1220, Material and Supplies, or other appropriate account.
Straight-line method , as applied to depreciation accounting, means the plan
under which the cost of property is charged to operating expenses and
credited to accumulated depreciation through equal annual charges as nearly
as may be during its service life.
Subsidiary record means accumulation of detailed information which is
required by this Commission to be maintained in support of entries to the
accounts.
Subsidiary record categories means those segregations of certain regulated
costs, expenses and revenues which must be maintained and are subject to
specific reporting requirements of this Commission.
Subsystems, parallel mechanisms means processes or procedures which augment
the use of a chart of accounts in the financial operation of the entity.
These subsystems operate on and/or process account and subsidiary record
information for specific purposes.
Telecommunications means any transmission, emission, or reception of signs,
signals, writing, images or sounds or intelligence of any nature by wire,
radio, visual or other electromagnetic systems. This encompasses the
aggregate of several modes of conveying information, signals or messages
over a distance. Included in the telecommunications industry is the
transmitting, receiving, or exchanging of information among multiple
locations. The minimum elements required for the telecommunications process
to occur are a message source, a transmission medium and a receiver.
Time of installation means the date at which telecommunications plant is
placed in service.
Time of retirement means the date at which telecommunications plant is
retired from service.
Tangible property means assets characterized by physical existence, such as
land, buildings, equipment, furniture, fixtures and tools.
[ 51 FR 43499 , Dec. 2, 1986, as amended at 61 FR 50245 , Sept. 25, 1996; 62 FR 39778 , July 24, 1997; 62 FR 51064 , Sept. 30, 1997; 64 FR 50008 , Sept. 15,
1999; 67 FR 5700 , Feb. 6, 2002]
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August 1, 2007 -->
Goto Section: 32.7990 | 32.9000
Goto Year: 2007 |
2009
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