§ 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 purchased.

   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;  82 FR 20843 , May 4, 2017]

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