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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                        Last updated: July 27, 2005