§  32.14   Regulated accounts.

   (a) In the context of this part, the regulated accounts shall be
   interpreted to include the investments, revenues and expenses
   associated with those telecommunications products and services to which
   the tariff filing requirements contained in Title II of the
   Communications Act of 1934, as amended, are applied, except as may be
   otherwise provided by the Commission. Regulated telecommunications
   products and services are thereby fully subject to the accounting
   requirements as specified in Title II of the Communications Act of
   1934, as amended, and as detailed in subparts A through F of this part
   of the Commission's Rules and Regulations.

   (b) In addition to those amounts considered to be regulated by the
   provisions of paragraph (a) of this section, those telecommunications
   products and services to which the tariff filing requirements of the
   several state jurisdictions are applied shall be accounted for as
   regulated, except where such treatment is proscribed or otherwise
   excluded from the requirements pertaining to regulated
   telecommunications products and services by this Commission.

   (c) In the application of detailed accounting requirements contained in
   this part, when a regulated activity involves the common or joint use
   of assets and resources in the provision of regulated and nonregulated
   products and services, companies shall account for these activities
   within the accounts prescribed in this system for telephone company
   operations. Assets and expenses shall be subdivided in subsidiary
   records among amounts solely assignable to nonregulated activities,
   amounts solely assignable to regulated activities, and amounts related
   to assets used and expenses incurred jointly or in common, which will
   be allocated between regulated and nonregulated activities. Companies
   shall submit reports identifying regulated and nonregulated amounts in
   the manner and at the times prescribed by this Commission. Nonregulated
   revenue items not qualifying for incidental treatment, as provided in
   § 32.4999(l), shall be recorded in Account 5280, Nonregulated operating
   revenue.

   (d) Other income items which are incidental to the provision of
   regulated products and services shall be accounted for as regulated
   activities.

   (e) All costs and revenues related to the offering of regulated
   products and services which result from arrangements for joint
   participation or apportionment between two or more telephone companies
   (e.g., joint operating agreements, settlement agreements, cost-pooling
   agreements) shall be recorded within the detailed accounts. Under joint
   operating agreements, the creditor will initially charge the entire
   expenses to the appropriate primary accounts. The proportion of such
   expenses borne by the debtor shall be credited by the creditor and
   charged by the debtor to the account initially charged. Any allowances
   for return on property used will be accounted for as provided in
   Account 5200, Miscellaneous revenue.

   (f) All items of nonregulated revenue, investment and expense that are
   not properly includible in the detailed, regulated accounts prescribed
   in subparts A through F of this part, as determined by paragraphs (a)
   through (e) of this section shall be accounted for and included in
   reports to this Commission as specified in § 32.23 of this subpart.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  52 FR 6560 , Mar. 4, 1987;  53 FR 49321 , Dec. 7, 1988;  67 FR 5679 , Feb. 6, 2002]