[Federal Register Volume 67, Number 243 (Wednesday, December 18, 2002)]
[Rules and Regulations]
[Pages 77432-77433]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-31606]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 32

[CC Docket No. 02-269; FCC 02-309]


Federal-State Joint Conference on Accounting Issues

AGENCY: Federal Communications Commission.

ACTION: Final rule; delay of effective date.

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SUMMARY: This order suspends the implementation of four previously 
adopted accounting and reporting rule changes until July 1, 2003 to 
allow the recently established Federal-State Joint Conference on 
Accounting Issues to review them because of the great interest in these 
changes by Joint Conference members.

DATES: The effective date for amendments to 47 CFR 32.5200, 32.6562 and 
32.6620 published at 67 FR 5670, February 6, 2002, is further delayed 
until July 1, 2003.

FOR FURTHER INFORMATION CONTACT: Jane Jackson, Associate Chief, 
Wireline Competition Bureau, (202) 418-1500.

SUPPLEMENTARY INFORMATION: On November 5, 2001, the Commission released 
a Report and Order, 67 FR 5670, February 6, 2002, as part of its 
biennial review of accounting requirements and Automated Reporting 
Management Information System (ARMIS) reporting requirements. In the 
order, the Commission adopted a number of accounting and reporting 
requirement reforms. The reforms included the creation of several new 
part 32 Uniform System of Accounts subaccounts and the elimination or 
modification of other part 32 accounts and subaccounts and modification 
of ARMIS reporting requirements. Changes to the part 32 accounting 
rules are scheduled to take effect January 1, 2003. On March 8, 2002, 
BellSouth Corporation, SBC Communications Inc., and Verizon filed a 
joint petition for reconsideration asking that two newly-created 
subaccounts--the wholesale and retail subaccounts to Account 6620, 
Services--be eliminated. The petitioners also requested that the 
Commission change the reporting of ``Loop Sheath Kilometers'' back to 
``Sheath Kilometers.'' The petitioners argued that the Commission 
should delay implementation of the relevant rule changes pending review 
of the arguments raised in their earlier reconsideration petition. The 
petitioners asserted that implementation of the rule changes will be 
very costly and time-consuming, and requested that they not be required 
to undertake this work while the Commission considers their petition. 
AT&T Corp. opposed both the petition for reconsideration and the 
request to delay implementation. On September 5, 2002, the Commission 
convened the Federal-State Joint Conference on Accounting Issues, which 
is undertaking ``a cooperative federal and state review of regulatory 
accounting and reporting requirements in order to determine their 
adequacy and effectiveness in the current market and make 
recommendations for improvements.'' In preliminary discussions, members 
of the Joint Conference identified the following two part 32 accounting 
changes adopted earlier that they believe should be subject to further 
consideration before implementation: the consolidation of

[[Page 77433]]

Account 5230, Directory revenue, with other miscellaneous revenue 
accounts into Account 5200, Miscellaneous revenue; and the 
consolidation of the depreciation and amortization expense accounts 
(Accounts 6561 through 6565) into Account 6562, Depreciation and 
amortization expenses. The Commission believes that further 
consideration of these changes by the Joint Conference is reasonable 
and defers the implementation of the following accounting and reporting 
requirement rule changes for six months: (1) The consolidation of 
Accounts 6621 through 6623 into Account 6620, with subaccounts for 
wholesale and retail; (2) the consolidation of Account 5230, Directory 
revenue, into Account 5200, Miscellaneous revenue; (3) the 
consolidation of the depreciation and amortization expense accounts 
(Accounts 6561 through 6565) into Account 6562, Depreciation and 
amortization expenses; and (4) the revised ``Loop Sheath Kilometers'' 
data collection in Table II of ARMIS Report 43-07. The effective date 
for the rule changes to Accounts 5200, 6562, and 6620 had earlier been 
extended to January 1, 2003, published on April 24, 2002, at 67 FR 
20052, and now are further extended to July 1, 2003. The change 
affecting ARMIS Report 43-07 is extended to July 1, 2003.

Federal Communications Commission.
Jane E. Jackson,
Associate Chief, Wireline Competition Bureau.
[FR Doc. 02-31606 Filed 12-17-02; 8:45 am]
BILLING CODE 6712-01-P