New York Codes, Rules and Regulations › Title 16 - DEPARTMENT OF PUBLIC SERVICE › Chapter VI - TELEPHONE AND TELEGRAPH CORPORATIONS › Subchapter E - Uniform Systems Of Accounts › Article 1 - Telephone Corporations › Part 663 - Instructions-telecommunications Plant Accounts › Section 663.5 - Telecommunications plant retired

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Telecommunications plant accounts shall at all times disclose the original cost
					 of all property in service. When any item of property subject to plant
					 retirement accounting is worn out, lost, sold, destroyed, abandoned,
					 surrendered upon lapse of title, becomes permanently unserviceable, is
					 withdrawn or for any other reason is retired from service, the plant accounts
					 applicable to that item shall be credited with the original cost of the plant
					 retired whether replaced or not (except as provided for minor items in
					 paragraph [b][2] of this section). Normally, these retirement credits with
					 respect to such plant as entire buildings, entire central offices, all plant
					 abandoned and any large sections of plant withdrawn from service, shall be
					 entered in the accounts for the month in which use of the property ceased. For
					 any other plant withdrawn from service, the retirement credits shall be entered
					 no later than the next succeeding month. Literal compliance with the provision
					 for timing of entries with respect to property amounting to less than $50,000
					 for Class A companies or $10,000 for Class B companies retired under any one
					 project is not required if an unreasonable amount of recordkeeping and
					 estimating of quantities, original costs and salvage is necessary. The
					 retirement entry shall refer to the continuing property record, or records
					 supplemental thereto, from which the cost was obtained (note also subdivision
					 [c] of this section). Every company shall establish procedures which will
					 ensure compliance with these requirements.
(b) To avoid undue refinement, depreciable
					 telecommunications plant shall be accounted for as follows:
(1) Retirement units. This group includes
					 major items of property, as shown in the Retirement Units List of this system
					 of accounts. (The Retirement Units List is set out at the end of the system of
					 accounts, infra.) For items included on the retirement units list, the original
					 cost of any such items retired shall be credited to the plant account and
					 charged to account 3100, Accumulated Depreciation, whether or not replaced. The
					 original cost of retirement units installed in place of property retired shall
					 be charged to the applicable telecommunications plant account.
(2) Minor items. This group includes any part
					 or element of plant which is not designated as a retirement unit. The original
					 cost of a minor item of property when included in the specific or average cost
					 for a retirement unit or units requires no separate credit to the
					 telecommunications plant account when such a minor item is retired. The cost of
					 replacement shall be charged to the account applicable for the cost of repairs
					 of the property. However, if the replacement effects a substantial betterment
					 (the primary aim of which is to make the property affected more useful, of
					 greater durability, of greater capacity or more economical in operation), the
					 excess cost of such a replacement, over the estimated cost at the then current
					 prices of replacement without betterment of the minor items being retired,
					 shall be charged to the applicable telecommunications plant account.