§ 32.1438   Deferred maintenance and retirements.

   (a) This account shall include such items as:

   (1) The unprovided-for loss in service value of telecommunications
   plant for extraordinary nonrecurring retirement not considered in
   depreciation and the cost of extensive replacements of plant normally
   chargeable to the current period Plant Specific Operations Expense
   accounts. These charges shall be included in this account only upon
   direction or approval from this Commission. However, the company's
   application to this Commission for such approval shall give full
   particulars concerning the property retired, the extensive
   replacements, the amount chargeable to operating expenses and the
   period over which in its judgment the amount of such charges should be
   distributed.

   (2) Unaudited amounts and other debit balances in suspense that cannot
   be cleared and disposed of until additional information is received;
   the amount, pending determination of loss, of funds on deposit with
   banks which have failed; revenue, expense, and income items held in
   suspense; amounts paid for options pending final disposition.

   (3) Cost of preliminary surveys, plans, investigation, etc., made for
   construction projects under contemplation. If the projects are carried
   out, the preliminary costs shall be included in the cost of the plant
   constructed. If the projects are abandoned, the preliminary costs shall
   be charged to Account 7300, Nonoperating income and expense.

   (4) Cost of evaluations, inventories, and appraisals taken in
   connection with the acquisition or sale of property. If the property is
   subsequently acquired, the preliminary costs shall be accounted for as
   a part of the cost of acquisition, or if it is sold, such costs shall
   be deducted from the sale price in accounting for the property sold. If
   purchases or sales are abandoned, the preliminary costs included herein
   (including options paid, if any) shall be charged to Account 7300.

   (b) Charges provided for in paragraph (a) of this section shall be
   included in this account only upon direction or approval from this
   Commission. However, the company's application to this Commission for
   such approval shall give full particulars concerning the property
   retired, the extensive replacements, the amount chargeable to operating
   expenses and the period over which in its judgment the amount of such
   charges should be distributed.

   [ 51 FR 43499 , Dec. 2, 1986, as amended at  67 FR 5683 , Feb. 6, 2002]

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