Sec. 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 
Sec. 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 charge. Any allowances 
for return on property used will be accounted for as provided in Account 
5240, Rent 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 Sec. 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]