1998 Biennial Regulatory ReviewReview of Accounting and Cost Allocation Requirements

摘要

This document streamlines the accounting requirements for mid- sized incumbent local exchange carriers (LECs) whose aggregate annual revenues are less than $7 billion by allowing these companies, currently required to use Class A accounts, to use the more streamlined Class B accounts. The Commission also permits the mid-sized incumbent LECs to submit their cost allocation manuals (CAMs) based on the Class B system of accounts. In addition, mid-sized incumbent LECs will now only be required to obtain an attestation every two years, instead of an annual financial audit requiring a positive opinion. The Commission also eliminates several accounting requirements for all incumbent LECs. The Commission's objective in modifying the accounting and cost allocation rules is to minimize the reporting burden on incumbent LECs and improve the quality of the reported information.