WPC!% 2 BPZ Courier 10cpi3|w>x6X@8;X@HP LaserJet IIISi in front 812HPLASIII.PRSx  @H zX@2-<i y Z{CG Times (Scalable)CG Times Bold (Scalable)3|w*HP LaserJet IIISi in front 812HPLASIII.PRSC\  P6QH zP2Za > bx/c81,c P7Pc8wC;,[hXw P7XPdANE,, P7Pe@NE,!3_ p^77zC;,sXz_ p^7X^18MSS888S8888SSSSSSSSSS88Jxir{icx{8Aui{x`xoYi{xxxl888SS8JSJSJ8SS..S.SA.SSxSSJJSJSSSSSS8SSSSSSSSS.xJxJxJxJxJorJiJiJiJiJ8.8.8.8.{SxSxSxSxS{S{"Sh5^18MSS888S8888SSSSSSSSSS88Jxir{icx{8Aui{x`xoYi{xxxl888SS8JSJSJ8SS..S.SSSS>A.SSxSSJJSJSSSSSS8SSSSSSSSS.xJxJxJxJxJorJiJiJiJiJ8.8.8.8.{SxSxSxSxS{S{S{S{SxSxJ{SxSxSxS{S`SxSxSxSrSrSrS{SiSiSiSiSxSxSxSxSxS{S{SS.SSSSz]SSuSiSiSk2g/a{S{SxSxSxoSoSZ?YSYSiSiSiS{S{S{S{SxxSkI8SS888WxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNxxxSSS8JDDSSSSSS;SSSS;88VVS++SSffSSxSc]]8VS;"xxSxWxxS唔S88xfxxxxxxxxxxx8SxS]SxoS8SxJS`xlxxxxxxxxxxMxxxxxxofxGcxxxxxxxSxxxxxxxJxxxxJxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx8xxx8xxx8xxx8xxxxxxxxxxxxxxfi]f]oJiAlJ{SxJ8.uJo]]{JoSxJxf`SfSSiJxJofx]fffxi{8SxxxfJffff88SSSSx{SSSxxxf8`SJ8"Sh5^;C]ddCCCdCCCCddddddddddCCȲY~~vCN~sk~CCCddCYdYdYCdd88d8ddddJN8ddddYYdYddddddCddddddddd8YYYYYY~Y~Y~Y~YC8C8C8C8ddddddddddYdddddsdddddddd~d~d~d~ddddddddd8ddddoddd~d~d<|8tddddddlLkdkd~d~d~ddddddXCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCYQQddddddFddddFCChhd44ddzzdddvooChdF"Ȑdhd岲dCCȐzȲxCddodȐȅdCdYdsȐ]ȐȐȧzȐUvŐdȐYYCCCCŐz~ozoY~NYdYC8YooYdYzsdzdd~YYzozzz~CdzYzzzzCCdddddddzCsdYC"`H2 : ^ENluuNNNuNNNNuuuuuuuuuuNNhN[}NNNuuNhuhuhNuuAAuAuuuuV[AuuuuhhuhuuuuuuNuuuuuuuuuAhhhhhhhhhhNANANANAuuuuuuuuuuhuuuuuuuuuuuuuuuuuuuuuuuuuAuuuuuuuuuFAuuuuuu~Y}u}uuuuuuuuugNuuNNNWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNuuuNh__uuuuuuRuuuuRNNyyu<<uuuuuNyuR"uyuuNNxNuuuuNuhulcuhhNNNNh[huhNAhhuhuuuhhNuhNNuuuuuuuNuhN2> 1o F`%"`H2 : ^ENluuNNNuNNNNuuuuuuuuuuNNu[pNNNuuNuhhRuANAuh[NuuuhuuuuuuuuuNuuuuuuuuAuuuuuhhhhh[A[A[A[AuuuuuuuuuuuuuuuuuuuuuuuuuuAuuuuuuu[Auuuu[uuuuuuhNuuNNNWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNuuuNuccuuuuuuRuuuuRNNu<<uuuuuNuR"uuuNNxNuuuuNuhupcuuuNNNNh[hhh[Ahhuhuuuhh[uhNNuuuuuuuNuhN"Sh5^;C]ddCCCdCCCCddddddddddCCȲdxN`xoȐCCCddCdoYoYFdo8Co8odooYNCodddYdddddddddCddddddddo8dddddϐYYYYYN8N8N8N8oddddooooddoddddxoddddddodddddddddood8doddrddoddN8ooddddoNododdddooooȐdYCddCCCWxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxNdddCdUUddddddFddddFCCssd44ddzzddd~ooCsdF"Ȑdsd岲dCCȐzȲxCddodȐȅdCdYdsȐ`ȐȐȮzȐUvŐdȐddCCCCŐzozoYNYYYN8YooYdYzzdzddYYzozzzNdzYzzzzCCdddddddzCzdYC a<#XP\  P6Q[hXP# #^\  P6Q,P# FEDERAL COMMUNICATIONS COMMISSION#XP\  P6Q[hXP# ă WASHINGTON, D.C. 20554 *April 13, 1988 In reply refer to: KRAO Letter 13 X(# X(#PResponsible Accounting Officers: Part 32, Uniform System of Accounts for Telecommunications Companies Accounting for Certain Loadings to Cost of Removal   xRecent submissions for depreciation rate represcriptions have brought to our attention a  x-question on accounting for cost of removal under Part 32, Uniform System of Accounts for  xTelecommunications Companies. The represcription requests include an adjustment to the rates  xbecause of certain changes with respect to the elements included as cost of removal and charged against accumulated depreciation (the depreciation reserve).   xPart 31, Uniform System of Accounts for Class A and Class B Telephone  xCompanies--which was replaced by Part 32--did not provide for loading relief and pensions, and  xLsocial security taxes onto the cost of removal charged against Account 171, Depreciation  xZReserve. Carriers seeking represcription, however, indicate that under Part 32 they are now  xcharging these elements against Account 3100, Accumulated Depreciation, as part of the cost of removal. It is their interpretation that this is required by the new accounting rules in Part 32.   xUnder Part 31 $Q , $Q  relief and pensions expenses were recorded in a separate account,  xAccount 672, Relief and Pensions. Likewise, social security taxes were recorded in Account  x307, Other Operating Taxes. Under Part 32, however, there are no separate accounts for these  x[items. Instead, the expense matrix required in Section 32.5999 provides a category called  x"benefits." It is clear that this category shall include "payroll related benefits," and among the  xitems listed to be payroll related benefits are pensions and social security taxes. The intent is that  xrelief and pensions, social security taxes, and other such payroll related expenses are to be recorded in the various expense accounts.   ?xWith respect to the relief, pensions, social security taxes, and other payroll related  xKbenefits associated with cost of removal, it was intended that, in the same manner that these  xelements are considered cost of construction as required under Section 32.2000(c)(2)(i), they are  xhconsidered to be includable in the definition of cost of removal. The clearance of salary dollars  xwithout the associated benefits would distort the relationship of benefits to salary in those  xYaccounts that retain, or have charged to them, the benefits that are properly associated with the  xsalary charged to Account 3100 for the cost of removal. Therefore, when salaries and wages are  xcharged to Account 3100 for the cost of removal, the associated relief and pensions, social security taxes, and other benefits are to be charged to Account 3100, $Q  as well. ")0*0*0*]*"Ԍ   xThis letter is issued under Section 0.291 of the Commission's rules. Applications for  xreview under Section 1.115 of the Commission's rules must be filed within 30 days from the  Y-date indicated above. (See Section 1.4(b)(4) of the Commission's rules.) xIf you have any questions, contact the Chief of the Accounting Systems Branch at (202) 4180810. x` `  hh@hppSincerely, x` `  hh@hppKenneth P. Moran, x` `  hh@hppChief, Accounting and Audits Division x` `  hh@hppCommon Carrier Bureau