Goto Section: 32.7250 | 32.7400 | Table of Contents
FCC 32.7300
Revised as of October 2, 2015
Goto Year:2014 |
2016
§ 32.7300 Nonoperating income and expense.
This account shall be used to record the results of transactions, events and
circumstances affecting the company during a period and which are not
operational in nature. This account shall include such items as nonoperating
taxes, dividend income and interest income. Whenever practicable, the
inflows and outflows associated with a transaction or event shall be matched
and the result shown as a net gain or loss. This account shall include the
following:
(a) Dividends on investments in common and preferred stock, which is the
property of the company, whether such stock is owned by the company and held
in its treasury, or deposited in trust including sinking or other funds, or
otherwise controlled.
(b) Dividends received and receivable from affiliated companies accounted
for on the equity method shall be included in Account 1410, Other noncurrent
assets, as a reduction of the carrying value of the investments.
(c) Interest on securities, including notes and other evidences of
indebtedness, which are the property of the company, whether such securities
are owned by the company and held in its treasury, or deposited in trust
including sinking or other funds, or otherwise controlled. It shall also
include interest on cash bank balances, certificates of deposits, open
accounts, and other analogous items.
(d) For each month the applicable amount requisite to extinguish, during the
interval between the date of acquisition and date of maturity, the
difference between the purchase price and the par value of securities owned
or held in sinking or other funds, the income from which is includable in
this account. Amounts thus credited or charged shall be concurrently
included in the accounts in which the securities are carried.
(e) Amounts charged to the telecommunications plant under construction
account related to allowance for funds used during construction. (See
§ 32.2000(c)(2)(x).)
(f) Gains or losses resulting from:
(1) The disposition of land or artworks;
(2) The disposition of plant with traffic;
(3) The disposition of nonoperating telecommunications plant not previously
used in the provision of telecommunications services.
(g) All other items of income and gains or losses from activities not
specifically provided for elsewhere, including representative items such as:
(1) Fees collected in connection with the exchange of coupon bonds for
registered bonds;
(2) Gains or losses realized on the sale of temporary cash investments or
marketable equity securities;
(3) Net unrealized losses on investments in current marketable equity
securities;
(4) Write-downs or write-offs of the book costs of investment in equity
securities due to permanent impairment;
(5) Gains or losses of nonoperating nature arising from foreign currency
exchange or translation;
(6) Gains or losses from the extinguishment of debt made to satisfy sinking
fund requirements;
(7) Amortization of goodwill;
(8) Company's share of the earnings or losses of affiliated companies
accounted for on the equity method; and
(9) The net balance of the revenue from and the expenses (including
depreciation, amortization and insurance) of property, plant, and equipment,
the cost of which is includable in Account 2006, Nonoperating plant.
(h) Costs that are typically given special regulatory scrutiny for
ratemaking purposes. Unless specific justification to the contrary is given,
such costs are presumed to be excluded from the costs of service in setting
rates.
(1) Lobbying includes expenditures for the purpose of influencing public
opinion with respect to the election or appointment of public officials,
referenda, legislation, or ordinances (either with respect to the possible
adoption of new referenda, legislation or ordinances, or repeal or
modification of existing referenda, legislation or ordinances) or approval,
modification, or revocation of franchises, or for the purpose of influencing
the decisions of public officials. This also includes advertising, gifts,
honoraria, and political contributions. This does not include such
expenditures which are directly related to communications with and
appearances before regulatory or other governmental bodies in connection
with the reporting utility's existing or proposed operations;
(2) Contributions for charitable, social or community welfare purposes;
(3) Membership fees and dues in social, service and recreational or athletic
clubs and organizations;
(4) Penalties and fines paid on account of violations of statutes. This
account shall also include penalties and fines paid on account of violations
of U.S. antitrust statutes, including judgements and payments in settlement
of civil and criminal suits alleging such violations; and
(5) Abandoned construction projects.
(i) Cash discounts on bills for material purchased shall not be included in
this account.
[ 67 FR 5698 , Feb. 6, 2002]
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Goto Section: 32.7250 | 32.7400
Goto Year: 2014 |
2016
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