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 661 - Instructions-general › Section 661.16 - Transactions with affiliates

Current through Register Vol. 46, No. 28, July 10, 2024
(a)
					 Unless otherwise approved by this commission transactions with affiliates
					 involving asset transfers into or out of the regulated accounts shall be
					 recorded by the carrier in its regulated accounts as provided in subdivisions
					 (b) through (f) of this section.
(b) Charges for assets purchased by or
					 transferred to the regulated telephone activity of a carrier from affiliates
					 shall be recorded in the operating accounts of the regulated activity at the
					 lower of their cost to the originating activity of the affiliated group less
					 all applicable valuation reserves or their fair market value. (Asset transfers
					 between regulated affiliates are subject to the original cost requirements
					 prescribed in section
					 663.2 
					 of this Part.)
(c) Assets sold or
					 transferred from the regulated accounts to affiliates shall be recorded as
					 operating revenues, incidental revenues or asset retirements according to the
					 nature of the transaction involved. If such sales are reflected in tariffs on
					 file with a regulatory commission, the associated revenues shall be recorded at
					 the prices contained therein in the appropriate revenue accounts. If no tariff
					 is applicable, the proceeds from such sales shall be determined at the higher
					 of cost less all applicable valuation reserves, or estimated fair market value
					 of the asset.
(d) Services provided
					 to an affiliate pursuant to a tariff, including a tariff filed with the Federal
					 Communications Commission, shall be recorded in the appropriate revenue
					 accounts at the tariffed rate. Services provided by an affiliate to the
					 regulated activity shall be recorded at cost which shall be determined in a
					 manner that complies with the standards and procedures for the apportionment of
					 joint and common costs between the regulated and nonregulated operations of the
					 carrier entity.
(e) Income taxes
					 shall be allocated among the regulated activities of the carrier, its
					 nonregulated divisions and members of an affiliated group. Under circumstances
					 in which income taxes are determined on a consolidated basis by the carrier and
					 other members of the affiliated group, the income tax expense to be recorded by
					 the carrier shall be the same as would result if determined for the carrier
					 separately for all time periods, except that the tax effect of carry-back and
					 carry-forward operating losses, investment tax credits, or other tax credits
					 generated by operations of the carrier shall be recorded by the carrier during
					 the period in which applied in settlement of the taxes otherwise attributable
					 to any member or combination of members of the affiliated group.
(f) The principles set forth in this section
					 shall apply equally to corporations, proprietorships, partnerships and other
					 forms of business organizations.
(g) Each company shall keep its accounts and
					 records in such a manner that accurate statements of all transactions with
					 affiliated companies can be expeditiously furnished upon request. These records
					 shall be kept in sufficient detail to show separately for each transaction for
					 each affiliate (1) the amount of the transaction (2) the nature of the
					 transaction and (3) the final revenue, income, expense or capital account of
					 the accounting company. All transactions with affiliates must be recorded in
					 accordance with the instructions in subdivisions (h) and (i) of this
					 section.
(h) All gross charges from
					 any affiliated company shall be credited to a subaccount for that company under
					 the appropriate subdivisions of the following accounts:
4010.1 Accounts Payable to Affiliated Companies
4020.1 Notes Payable to Affiliated Companies
4260 Advances from Affiliated Companies
(i) All gross charges to any affiliated
					 company shall be debited to a subaccount for that company under the appropriate
					 subdivisions of the following accounts:
1150 Working Cash Advances
1160 Temporary Investments
1180 Telecommunications Accounts Receivable
1190.1 Accounts Receivable from Affiliated
						Companies
1200.1 Notes Receivable from Affiliated Companies
1401.1 Investments in Affiliated Companies
1401.2 Advances to Affiliated Companies