66 FR 123 pgs. 33938-33941 - Phase 2 of the Comprehensive Review of the Accounting Requirements and ARMIS Reporting Requirements for Incumbent Local Exchange Carriers
Type: PRORULEVolume: 66Number: 123Pages: 33938 - 33941
Docket number: [CC Docket No. 00-199; DA 01-1403]
FR document: [FR Doc. 01-15832 Filed 6-25-01; 8:45 am]
Agency: Federal Communications Commission
Official PDF Version: PDF Version
FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 32
[CC Docket No. 00-199; DA 01-1403]
Phase 2 of the Comprehensive Review of the Accounting Requirements and ARMIS Reporting Requirements for Incumbent Local Exchange Carriers
AGENCY:
Federal Communications Commission.
ACTION:
Proposed rule; comments requested.
SUMMARY:
In this document the Commission is seeking supplemental comment in the Phase 2 Comprehensive Review of the Accounting and ARMIS Reporting Requirements for Incumbent Local Exchange Carriers. This document expressly seek comment on additions, consolidations, or eliminations of accounts on the attached list of Class A and Class B accounts. One of the goals of the comprehensive review proceeding is to update our accounting system based on changes in the marketplace and in technology.
DATES:
Written comments by the public are due on or before July 16, 2001, reply comments are due on or before July 26, 2001.
ADDRESSES:
Federal Communications Commission, 445-12th Street, SW, TW-A325, Washington, D.C. 20554.
FOR FURTHER INFORMATION CONTACT:
Mika Savir, Accounting Safeguards Division, Common Carrier Bureau, at (202) 418-0384 or Andrew Mulitz, Accounting Safeguards Division, Common Carrier Bureau, at (202) 418-0827.
SUPPLEMENTARY INFORMATION:
On October 18, 2000, the Commission released a Notice of Proposed Rulemaking in CC Docket No. 00-199, 65 FR 67675 (November 18, 2000), seeking comment on, inter alia , changes to our Part 32 Uniform System of Accounts ("USOA"). One of the goals in this comprehensive review proceeding is to update our accounting system based on changes in the marketplace and in technology. Based on our review of the specific accounts and comments filed in this proceeding, we now wish to focus the record on streamlining the Commission's Class A and Class B accounts, as shown in the attachment to this document. We expressly seek comment on additions, consolidations, or eliminations of accounts on this proposed list.
Comments are due on the attached proposal July 16, 2001. Reply comments are due on or before July 26, 2001. Comments may be filed using the Commission's Electronic Comment Filing System (ECFS) or by filing paper copies.
Comments filed through the ECFS can be sent as an electronic file via the Internet to http://www.fcc.gov/e-file/ecfs.html. Generally, only one copy of an electronic submission must be filed. If multiple docket or rulemaking numbers appear in the caption of this proceeding, however, commenters must transmit one electronic copy of the comments to each docket or rulemaking number referenced in the caption. In completing the transmittal screen, commenters should include their full name, Postal Service mailing address, and the applicable docket or rulemaking number. Parties may also submit an electronic comment by Internet e-mail. To get filing instructions for e-mail comments, commenters should send an e-mail to ecfs@fcc.gov, and should include the following words in the body of the message, "get form your e-mail address." A sample form and directions will be sent in reply.
Parties who choose to file by paper must file an original and four copies of each filing. If more than one docket or rulemaking number appear in the caption of this proceeding, commenters must submit two additional copies for each additional docket or rulemaking number. All filings must be sent to the Commission's Secretary, Magalie Roman Salas, Office of the Secretary, Federal Communications Commission, 445 12th Street, S.W., Washington, D.C. 20554.
Parties who choose to file by paper should also submit their comments on diskette. These diskettes should be submitted to: Ernestine Creech, Room 6-C317, Accounting Safeguards Division, 445 12th Street, S.W., Washington, D.C. 20554. Such a submission should be on a 3.5-inch diskette formatted in an IBM compatible format using Word or compatible software. The diskette should be accompanied by a cover letter and should be submitted in "read only" mode. The diskette should be clearly labeled with the commenter's name, proceeding (including the docket number, in this case CC Docket No. 00-199, type of pleading (comment or reply comment), date of submission, and the name of the electronic file on the diskette. The label should also include the following phrase "Disk Copy-Not an Original." Each diskette should contain only one party's pleadings, preferably in a single electronic file. In addition, commenters must send diskette copies to the Commission's copy contractor, International Transcription Service, Inc., 1231 20th Street, N.W., Washington, D.C. 20037.
Initial Regulatory Flexibility Analysis
As required by the Regulatory Flexibility Act (RFA), the Commission has prepared this Initial Regulatory Flexibility Analysis (IRFA) of any possible significant economic impact on small entities by the policies and rules proposed in this document. Written public comments are requested on this IRFA. Comments must be identified as responses to the IRFA and must be filed by the deadlines for comments on this document, which are set out in the document. The Commission will send a copy of this document, including this IRFA, to the Chief Counsel for Advocacy of the Small Business Administration. In addition, this document and IRFA (or summaries thereof) will be published in the Federal Register .
A. Need for, and Objectives of, the Proposed Rules
The Commission has initiated this proceeding to determine whether it should streamline or modify the current accounting and reporting requirements. This document seeks comment on further reducing the accounting requirements for incumbent local exchange carriers.
B. Legal Basis
The legal basis for the action as proposed for this rulemaking is contained in sections 4(i), 4(j), 11, 201(b), 303(r), and 403 of the Communications Act of 1934, as amended, 47 U.S.C. 154(i), 154(j), 161, 201(b), 303(r), and 403.
C. Description and Estimate of the Number of Small Entities to which the Proposed Action May Apply
The RFA directs agencies to provide a description of, and, where feasible, an estimate of the number of small entities that may be affected by the proposed rules, if adopted. To estimate the number of small entities that may be affected by the proposed rules, we first consider the statutory definition of "small entity" under the RFA. The RFA generally defines "small entity" as having the same meaning as the term "small business," "small organization," and "small governmental jurisdiction." In addition, the term "small business" has the same meaning as the term "small business concern" under the Small Business Act, unless the Commission has developed one or more definitions that are appropriate to its activities. Under the Small Business Act, a "small business concern" is one that: (1) Is independently owned and operated; (2) is not dominant in its field of operation; and (3) meets any additional criteria established by the Small Business Administration (SBA).
We have included small incumbent local exchange carriers (LECs) in this present RFA analysis. As noted above, a "small business" under the RFA is one that, inter alia, meets the pertinent small business size standard ( e.g., a telephone communications business having 1,500 or fewer employees), and "is not dominant in its field of operation." The SBA's Office of Advocacy contends that, for RFA purposes, small incumbent LECs are not dominant in their field of operation because any such dominance is not "national" in scope. We have therefore included small incumbent LECs in this RFA analysis, although we emphasize that this RFA action has no effect on the Commission's analyses and determinations in other, non-RFA contexts.
The SBA has developed a definition of small entities for telephone communications companies other than radiotelephone companies. The SBA has defined a small business for Standard Industrial Classification (SIC) categories 4812 (Radiotelephone Communications) and 4813 (Telephone Communications, Except Radiotelephone) to be small entities when they have no more than 1,500 employees. The Census Bureau reports that, there were 2,321 such telephone companies in operation for at least one year at the end of 1992. All but 26 of the 2,321 non-radiotelephone companies listed by the Census Bureau were reported to have fewer than 1,000 employees. Thus, even if all 26 of those companies had more than 1,500 employees, there would still be 2,295 non-radiotelephone companies that might qualify as small entities or small incumbent LECs. It seems certain that some of these carriers are not independently owned and operated, but we are unable at this time to estimate with greater precision the number of wireline carriers that would qualify as small business concerns under SBA's definition. Consequently, we estimate that fewer than 2,295 small telephone communications companies other than radiotelephone companies are small entities or small incumbent LECs that may be affected by the proposed rules, if adopted.
The proposed changes to the accounting requirements in this document, which are reductions in the Commission's accounting requirements, could affect all incumbent local exchange carriers. Some of these companies may be considered "small entities" under the SBA definition. Therefore, it is possible that some of the 2,295 small entity telephone companies may be affected by the proposals in this document.
D. Description of Proposed Reporting, Recordkeeping, and Other Compliance Requirements
This document seeks to further reduce accounting requirements for all incumbent local exchange companies. These proposals, if adopted, would result in fewer accounting requirements for all incumbent local exchange carriers, including small entities.
E. Steps Taken to Minimize Significant Economic Impact on Small Entities, and Significant Alternatives Considered
The RFA requires an agency to describe any significant alternatives that it has considered in reaching its proposed approach, which may include the following four alternatives (among others): (1) the establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; (2) the clarification, consolidation, or simplification of compliance or reporting requirements under the rule for small entities; (3) the use of performance, rather than design, standards; and (4) an exemption from coverage of the rule, or any part thereof, for small entities. 5 U.S.C. 603(c).
The rule changes proposed in this document are reductions in our accounting requirements for all incumbent local exchange carriers. Our proposals, if adopted, would streamline the accounting rules and would significantly lessen regulatory requirements for all carriers, including small entities. This should produce a significant economic benefit to small entities. Alternatives considered for small entities subject to our accounting and reporting requirements were to maintain our current rules or to consider changes proposed in this document on a case-by-case basis in ongoing proceedings where related accounting changes may properly be considered within the scope of such proceedings. Streamlining our current rules will reduce regulatory burdens on carriers, including small entities.
F. Federal Rules that May Duplicate, Overlap, or Conflict With the Proposed Rule
None.
Federal Communications Commission.
Kenneth P. Moran,
Chief, Accounting Safeguards Division, Common Carrier Bureau.
Attachment A
Part 32 Class Accounts (Proposed)
1120Cash and equivalents
1170Receivables
1171Allowances for doubtful accounts
1220Inventories
-Materials and supplies
-Property held for sale or lease
1280Prepayments
1350Other current assets
1406Nonregulated investments
-Permanent investment
-Receivable/payable
-Current net income or loss
1410Noncurrent assets
1437Deferred tax regulatory asset
1438Other deferred charges
1500Other jurisdictional assets-net
2001Telecommunications plant in service
2002Property held for future telecommunications use
2003Telecommunications plant under construction
2005Telecommunications plant adjustment
2006Nonoperating plant
2007Goodwill
2111Land
2112Motor vehicles
2113Aircraft
2114Tools and other work equipment
2121Buildings
2122Furniture
2123Office equipment
-Office support equipment
-Company communications equipment
2124General purpose computers
2211Non-digital switching
2212Digital electronic switching
-Circuit
-Packet
2213Optical switching
-Circuit
-Packet
2220Operator system
2231Radio system
2232Circuit equipment
-Electronic
-Optical
2311Station apparatus
2321Customer premises wiring
2341Large private branch exchanges
2351Public telephone terminal equipment
2362Other terminal equipment
2411Poles
2421Aerial cable
-Nonmetallic cable
-Metallic cable
2422Underground cable
-Nonmetallic cable
-Metallic cable
2423Buried cable
-Nonmetallic cable
-Metallic cable
2426Intrabuilding network cable
-Nonmetallic cable
-Metallic cable
2431Aerial wire
2441Conduit systems
2681Capital leases
2682Leasehold improvements
2690Intangibles
-Network Software
-Other
3100Accumulated depreciation
3200Accumulated depreciation-held for future telecommunications use
3300Accumulated depreciation-nonoperating
3410Accumulated amortization-capitalized leases
4000Current accounts and notes payable
4070Income taxes-accrued
4080Other taxes-accrued
4100Net current deferred operating income taxes
4110Net current deferred nonoperating income taxes
4130Other current liabilities
4200Long term debt and funded debt
4300Other long-term liabilities and deferred credits
4320Unamortized operating investment tax credits-net
4330Unamortized nonoperating investment taxcredits-net
4340Net noncurrent deferred operating income taxes
4341Net deferred tax liability adjustments
4350Net noncurrent deferred nonoperating income taxes
4361Deferred tax regulatory liability
4370Other jurisdictional liabilities deferred credits-net
4510Capital stock
4520Additional paid-in-capital
4530Treasury stock
4540Other Capital
4550Retained earnings
5000Basic local service revenue
5080Network access revenue
5081End user revenue
5082Switched access revenue
5083Special access revenue
5086Interconnection revenue
-UNE revenue
-Resale revenue
-Reciprocal Compensation revenue
-Other Interconnection revenue
5090USF support revenue
5105Long distance message revenue
5200Miscellaneous revenue
5280Nonregulated operating revenue
5300Uncollectible revenue
6112Motor vehicle expense
6113Aircraft expense
6114Tools and other work equipment expense
6121Land building expense
6122Furniture artworks expense
6123Office equipment expense
6124General purpose computers expense
6210Central office switching expenses
6211Non-digital expense
6212Digital electronic expense
-Circuit
-Packet
6213Optical expense
-Circuit
-Packet
6220Operator systems expense
6231Radio systems expense
6232Circuit equipment expense
-Electronic
-Optical
6311Station apparatus expense
6341Large private branch exchange expense
6351Public telephone terminal equipment expense
6362Other terminal equipment expense
6411Poles expense
6421Aerial cable expense
-Nonmetallic cable
-Metallic cable
6422Underground cable expense
-Nonmetallic cable
-Metallic cable
6423Buried cable expense
-Nonmetallic cable
-Metallic cable
6426Intrabuilding network cable expense
-Nonmetallic cable
-Metallic cable
6431Aerial wire expense
6441Conduit systems expense
6510Property held for future telecommunications use expense
6512Provisioning expense
6531Power expense
6532Network administration expense
6533Testing expense
6534Plant operations administration expense
6535Engineering expense
6540Access expense
6551Interconnection expense
-UNE expense
-Resale expense
-Reciprocal Compensation expense
-Other interconnection expense
6554USF support expense
6560Depreciation amortization expenses
6610Marketing
6620Customer services
6720General and administrative
7100Other operating income expenses
7200Operating taxes
7210Operating investment tax credits net
7220Operating federal income taxes
7230Operating state and local income taxes
7240Operating other taxes
7250Provision for deferred operating income taxes-net
7300Nonoperating income expense
7400Nonoperating taxes
7500Interest and related items
7600Extraordinary items-net
7910Income effect of jurisdictional ratemaking differences-net
7990Nonregulated net income
Account Total-178
Attachment B
Part 32 Class BAccounts (Proposed)
1120Cash and equivalents
1170Receivables
1171Allowance for doubtful accounts
1220Inventories
-Materials and supplies
-Property held for sale or lease
1280Prepayments
1350Other current assets
1406Nonregulated investments
-Permanent investment
-Receivable/payable
-Current net income or loss
1410Other noncurrent assets
1437Deferred tax regulatory asset
1438Other deferred charges
1500Other jurisdictional assets-net
2001Telecommunications plant in service
2002Property held for future telecommunications use
2003Telecommunications plant under construction
2005Telecommunications plant adjustment
2006Nonoperating plant
2007Goodwill
2110Land and support assets
2210Central Office-Switching
2220Operator systems
2230Central office-Transmission
2310Information origination/termination
2410Cable and wire facilities
2680Amortizable tangible assets
2690Intangibles
3100Accumulated depreciation
3200Accumulated depreciation-Held for future telecommunications use
3300Accumulated depreciation-nonoperating
3410Accumulated amortization-capital leases
4000Current accounts and notes payable
4070Income taxes-accrued
4080Other taxes-accrued
4100Net current deferred operating income taxes
4110Net current deferred operating income taxes
4130Other current liabilities
4200Long term funded debt
4300Other long-term liabilities and deferred credits
4320Unamortized operating investment tax credits-net
4330Unamortized nonoperating investment tax credits-net
4340Net noncurrent deferred operating income taxes
4341Net deferred tax liability adjustments
4350Net noncurrent deferred nonoperating income taxes
4361Deferred tax regulatory liability
4370Other jurisdictional liabilities and deferred credits-net
4510Capital stock
4520Additional paid-in-capital
4530Treasury stock
4540Other capital
4550Retained earnings
5000Basic local service revenue
5080Network access revenue
5081End user revenue
5082Switched access revenue
5083Special access revenue
5086Interconnection revenue
5090USF support revenue
5105Long distance message revenue
5200Miscellaneous revenue
5280Nonregulated operating revenue
5300Uncollectible revenue
6110Network support expense
6120General support expenses
6210Central office switching expense
6220Operator system expense
6230Central office transmission expenses
6310Information origination/termination expense
6410Cable and wire facilities expenses
6510Other property, plant and equipment expenses
6530Network operations expenses
6540Access expense
6551Interconnection expense
6554USF support expense
6560Depreciation and amortization expenses
6610Marketing
6620Services
6720General and administrative
7100Other operating income and expense
7200Operating taxes
7300Nonoperating taxes
7500Interest and related items
7600Extraordinary items
7910Income effect of jurisdictional ratemaking deferrences-net
7990Nonregulated net income
Account Totals-89
[FR Doc. 01-15832 Filed 6-25-01; 8:45 am]
BILLING CODE 6712-01-P