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                Federal Communications Commission
                      Washington, D.C. 20554


                                               In reply refer to:
                                                   RA LETTER 23

                                         Released: March 14, 1994
                                 
Responsible Accounting Officers:

     Re:  ARMIS USOA Report (FCC Report 43-02)--Corrections and Clarification of Certain
Tables, Instructions and Specifications

     The purpose of this letter is to advise the carriers that file ARMIS USOA Report (FCC
Report 43-02) that we are making minor corrections to the report for the 1993 reporting year. 
These changes are to the Reporting Procedures Section, Report Definition--Forms and Instructions
Section, and the Automated Report Specifications Section.

     Additionally, on January 31, 1994, the Commission adopted a Report and Order in CC
Docket No. 89-360 incorporating the accounting for income taxes set forth in the Financial
Accounting Standards Board's Statement of Financial Accounting Standards No. 109, Accounting
for Income Taxes (SFAS-109).  The Report and Order adds three new accounts to Part 32 of the
Rules so that carriers can adopt SFAS-109 for federal accounting purposes in a revenue neutral
manner. These new accounts will be added to the ARMIS Report in 1994.  The Report and Order
does, however, give the carriers the option of adopting the SFAS-109 accounting changes in 1993. 
Since some carriers may decide to adopt SFAS-109 in 1993, we believe that the following
guidance is needed on how to report this action in their 1993 ARMIS reports.

     For the 1993 ARMIS reporting purposes, amounts recorded in the new Account 1437,
Deferred Tax Regulatory Asset, should be added to the balance in Account 1439, Deferred
Charges, and reported on the appropriate row for Account 1439, and amounts recorded in new
Accounts 4341, Net Deferred Tax Liability Adjustments, and 4361, Deferred Tax Regulatory
Liability, should be added to the balance in Account 4370, Other Jurisdictional Liabilities and
Deferred Credits-Net, and reported on the appropriate row for Account 4370.  In addition, the
balances of Accounts 1437, 4341 and 4361 should be disclosed in a footnote to the appropriate
ARMIS reports, (e.g., ARMIS Reports 43-01, 43-02 and 43-03).

     The corrections to the Reporting Procedures and Report Definition Sections, along with
the descriptions thereof, are contained in Attachment A, and the corrections to the Automated
Report Specifications Section are contained in Attachment B.

     This letter and attachments are issued under Section 0.291 of the Commission's Rules. 
Applications for review under Section 1.115 of the Commission's Rules must be filed within 30
days from the date of public notice of this letter.






     If you have any questions, contact the Chief of the Accounting Systems Branch at (202)
418-0811.

                                        Sincerely,


                                        Kenneth P. Moran
                                        Chief, Accounting and Audits Division
                                        Common Carrier Bureau