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 660 - General Provisions › Section 660.1 - Basis of the accounts

Current through Register Vol. 46, No. 28, July 10, 2024
(a) The
					 financial accounts of a company are used to record, in monetary terms, the
					 basic transactions which occur. Certain natural groupings of these transactions
					 are called (in different contexts) transaction cycles, business processes,
					 functions or activities. The concept, however, is the same in each case; i.e.,
					 the natural groupings represent what happens within the company on a consistent
					 and continuing basis. This repetitive nature of the natural groupings, over
					 long periods of time, lends an element of stability to the financial account
					 structure.
(b) Within the
					 telecommunications industry companies, certain recurring functions (natural
					 groupings) do take place in the course of providing products and services to
					 customers. These accounts reflect, to the extent feasible, those functions. For
					 example, the primary bases of the accounts containing the investment in
					 telecommunications plant are the functions performed by the assets. In
					 addition, because of the anticipated effects of future innovations, the
					 telecommunications plant accounts are intended to permit technological
					 distinctions. Similarly, the primary bases of plant operations, customer
					 operations and corporate operations expense accounts are the functions
					 performed by individuals. The revenue accounts, on the other hand, reflect a
					 market perspective of natural groupings based primarily upon the products and
					 services purchased by customers.
(c) In the course of developing the bases for
					 this account structure, several other alternatives were explored. It was, for
					 example, determined that, because of the variety and continual changing of
					 various cost allocation mechanisms, the financial accounts of a company should
					 not reflect an a priori allocation of revenues, investments or expenses to
					 products or services, jurisdictions or organizational structures. (Note also
					 section
					 661.4[c] 
					 of this Title.) It was also determined that costs (in the case of assets)
					 should not be recorded based solely upon physical attributes such as location,
					 description or size.
(d) Care has
					 been taken in this account structure to avoid confusing a function with an
					 organizational responsibility, particularly as it relates to the expense
					 accounts. Whereas in the past, specific organizations may have performed
					 specific functions, the future environment with its increasing mechanization
					 and other changes will result in entirely new or restructured organizations.
					 Thus, any relationships drawn between organizations and accounts would become
					 increasingly meaningless with the passage of time.
(e) These accounts, then, are intended to
					 reflect a functional and technological view of the telecommunications industry.
					 This view will provide a stable and consistent foundation for the recording of
					 financial data.
(f) The financial
					 data contained in the accounts, together with the detailed information
					 contained in the underlying financial and other subsidiary records required by
					 this commission, will provide the information necessary to support separations,
					 cost of service and management reporting requirements. The basic account
					 structure has been designed to remain stable as reporting requirements
					 change.