Accounting Requirements for RUS Electric Borrowers

This final rule amends the Rural Utilities Service's (RUS) regulations on accounting policies and procedures for RUS electric borrowers as set forth in RUS's regulations concerning Accounting Requirements for RUS Electric Borrowers, Uniform System of Accounts. This final rule eliminates the requirement that RUS borrowers place the difference between the amount accrued for postretirement benefits during the year and the amount paid on a ``pay-as-you-go'' basis in an external, irrevocable trust to be used solely for postretirement benefits. RUS borrowers may, however, elect to voluntarily fund their postretirement benefit obligations. This final rule sets forth new accounting interpretations that address the requirements of recently issued pronouncements of the Financial Accounting Standards Board concerning the accounting for postemployment benefits and the accounting for certain investments in debt and equity securities. In addition, this final rule also sets forth a new accounting procedure for storm damage costs and the associated funds received from the Federal Emergency Management Administration (FEMA). It also clarifies the accounting prescribed for computer software costs by specifying the accounts to which generalized software costs should be amortized and to which the costs of maintaining, updating, and converting files should be expensed. In addition, this rule will identify the organizational unit within RUS to which borrower requests for departures from or interpretations of the RUS Uniform System of Accounts (USoA) should be submitted. This regulation will facilitate the effective and economical operation of a business enterprise and ensure that adequate and reliable financial records be maintained.