N.Y. Comp. Codes R. & Regs. tit. 16, § 661.16 – Transactions with affiliates.

(a) Unless otherwise approved by this commission transactions with affiliates involving asset transfers into or out of the regulated accounts shall be recorded by the carrier in its regulated accounts as provided in subdivisions (b) through (f) of this section.
(b) Charges for assets purchased by or transferred to the regulated telephone activity of a carrier from affiliates shall be recorded in the operating accounts of the regulated activity at the lower of their cost to the originating activity of the affiliated group less all applicable valuation reserves or their fair market value. (Asset transfers between regulated affiliates are subject to the original cost requirements prescribed in section 663.2 of this Part.)
(c) Assets sold or transferred from the regulated accounts to affiliates shall be recorded as operating revenues, incidental revenues or asset retirements according to the nature of the transaction involved. If such sales are reflected in tariffs on file with a regulatory commission, the associated revenues shall be recorded at the prices contained therein in the appropriate revenue accounts. If no tariff is applicable, the proceeds from such sales shall be determined at the higher of cost less all applicable valuation reserves, or estimated fair market value of the asset.
(d) Services provided to an affiliate pursuant to a tariff, including a tariff filed with the Federal Communications Commission, shall be recorded in the appropriate revenue accounts at the tariffed rate. Services provided by an affiliate to the regulated activity shall be recorded at cost which shall be determined in a manner that complies with the standards and procedures for the apportionment of joint and common costs between the regulated and nonregulated operations of the carrier entity.
(e) Income taxes shall be allocated among the regulated activities of the carrier, its nonregulated divisions and members of an affiliated group. Under circumstances in which income taxes are determined on a consolidated basis by the carrier and other members of the affiliated group, the income tax expense to be recorded by the carrier shall be the same as would result if determined for the carrier separately for all time periods, except that the tax effect of carry-back and carry-forward operating losses, investment tax credits, or other tax credits generated by operations of the carrier shall be recorded by the carrier during the period in which applied in settlement of the taxes otherwise attributable to any member or combination of members of the affiliated group.
(f) The principles set forth in this section shall apply equally to corporations, proprietorships, partnerships and other forms of business organizations.
(g) Each company shall keep its accounts and records in such a manner that accurate statements of all transactions with affiliated companies can be expeditiously furnished upon request. These records shall be kept in sufficient detail to show separately for each transaction for each affiliate (1) the amount of the transaction (2) the nature of the transaction and (3) the final revenue, income, expense or capital account of the accounting company. All transactions with affiliates must be recorded in accordance with the instructions in subdivisions (h) and (i) of this section.
(h) All gross charges from any affiliated company shall be credited to a subaccount for that company under the appropriate subdivisions of the following accounts:
4010.1 Accounts Payable to Affiliated Companies
4020.1 Notes Payable to Affiliated Companies
4260 Advances from Affiliated Companies
(i) All gross charges to any affiliated company shall be debited to a subaccount for that company under the appropriate subdivisions of the following accounts:
1150 Working Cash Advances
1160 Temporary Investments
1180 Telecommunications Accounts Receivable
1190.1 Accounts Receivable from Affiliated Companies
1200.1 Notes Receivable from Affiliated Companies
1401.1 Investments in Affiliated Companies
1401.2 Advances to Affiliated Companies