(a) As a general rule, all accounts kept by reporting companies shall conform in numbers and titles to those prescribed herein. However, reporting companies may use different numbers for internal purposes when separate accounts (or subaccounts) maintained are consistent with the title and content of accounts and subaccounts prescribed in this system.

1. (1) Accounts which are clearly summaries of other accounts or subaccounts are to be used for reporting purposes and are not otherwise required to be maintained.
2. (2) A company may subdivide any of the accounts prescribed. The titles of all such subaccounts shall refer by number or title to the controlling account.
3. (3) A telephone company may only use its own subaccount structure where this structure can readily be mapped to the subaccount structure prescribed in this system of accounts. Any company that wishes to use its own subaccount structure shall file its proposed structure with the director of the Office of Accounting and Finance, or his designee, no less than 60 days before the intended adoption of such accounting practice. Before such accounting practice may be adopted the director must be satisfied that the proposed subaccount structure can be mapped to the subaccount structure prescribed in this system of accounts.
4. (4) A company may establish temporary or experimental accounts provided that within 30 days of the opening of such accounts the company notifies the commission of the nature and purpose thereof.

(c) As of the date a company becomes subject to this system of accounts, it shall prepare opening entries in accordance with the following provisions:

1. (1) The accounts prescribed herein shall be opened by transferring thereto the balances carried in the accounts previously maintained. The company is authorized to make such subdivisions, reclassifications, or consolidations of such balances as are necessary to meet the requirements of this system of accounts.

2. (2) The company shall prepare and keep as supporting records summary statements showing:

   1. (i) the closing balances in each account carried on the books prior to the adoption of this system of accounts;
   2. (ii) the journal entries to effect the transfer of those balances to the accounts prescribed herein, arranging such entries so as to show for each account or subdivision thereof from what account and to what account each amount was transferred;
   3. (iii) the resultant opening balance of each account under this system of accounts.
3. (3) The first annual report filed with this commission by a utility covering its operations subsequent to the adoption of this system of accounts shall include copies of the statements referred to in subdivision (c)(2) of this section and shall be accompanied by a statement of the company's independent auditors attesting to the conformity, in all material aspects, of the transfer of the balance sheet account balances and detail telecommunications plant accounts as required by subdivision (c)(2)(ii) of this section with this system of accounts.

(d) Nothing contained in this Part shall prohibit or excuse any company, receiver, or operating trustee of any carrier from subdividing the accounts hereby prescribed for the purpose of:

1. (1) complying with the requirements of the commission(s) having jurisdiction; or
2. (2) securing the information required in the prescribed reports to such commission(s).

(e) Where the use of subsidiary records is considered necessary in order to secure the information required in reports to the commission, the company shall incorporate the following controls into their accounting system with respect to such subsidiary records:

1. (1) Subsidiary records shall be reconciled to the company's general ledger or books of original entry, as appropriate.
2. (2) The company shall adequately document the accounting procedures related to subsidiary records.
3. (3) The subsidiary records shall be maintained at an adequate level of detail to satisfy State regulators.