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than the percentage increase in rates scheduled for each immediately preceding year When an existing phase-in plan is modi ed or a new plan is ordered to replace or supplement an existing plan, the above criteria should be applied to the combination of the modi ed plan and the existing plan Thus, the 10-year period requirement, from when cost deferral commences until all costs are recovered, cannot be extended If the recovery period is modi ed beyond 10 years, recorded costs under the phase-in plan should be immediately charged to earnings (ii) Financial Statement Classi cation From a nancial statement viewpoint, costs deferred should be classi ed and reported as a separate item in the income statement in the section relating to those costs For instance, if capital costs are being deferred, they should be classi ed below-theline If depreciation or other operating costs are being deferred, the credit should be classi ed above-the-line with the operating costs Allowable costs capitalized should not be reported net as a reduction of other expenses Amortization of phase-in plan deferrals typically should be abovethe-line (similar to recovering AFUDC via depreciation) This income statement presentation is consistent with guidance provided by the SEC s staff in the Of cial Minutes of the Emerging Issues Task Force Meeting (February 23, 1989, Open Meeting) (iii) Allowance for Funds Used During Construction (AFUDC) SFAS No 92 clari es that AFUDC-equity can be capitalized in general purpose nancial statements only during construction (based on par 15 of SFAS No 71) or as part of a qualifying phase-in plan Thus, it is clear that, after January 1, 1988, AFUDC-equity can no longer be capitalized in connection with short-term rate synchronization deferrals It should also be noted that, in connection with the adoption of SFAS No 92, such deferrals can be recorded only when it is probable based on SFAS No 5 that such costs will be recovered in future rates This is consistent with the discussion on SFAS No 90 relating to capitalizing AFUDC (iv) Interrelationship of Phase-In Plans and Disallowances Amounts deferred pursuant to SFAS No 92 should also include an allowance for earnings on stockholders investment If the phase-in plan meets the criteria in SFAS No 92 and the regulator prevents the enterprise from recovering either some amount of its investment or some amount of return on its investment, a disallowance occurs that should be accounted for in accordance with SFAS No 90 (v) Financial Statement Disclosure A utility should disclose in its nancial statements the terms of any phase-in plans in effect during the year If a phase-in plan exists but does not meet the criteria in SFAS No 92, the nancial statements should include disclosure of the net amount deferred for rate-making purposes at the balance sheet date and the net change in deferrals for rate-making purposes during the year for those plans In addition, the nature and amounts of any allowance for earnings on stockholders investment capitalized for rate-making purposes but not capitalized for nancial reporting are to be disclosed.

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339 STATEMENT OF FINANCIAL ACCOUNTING STANDARDS NO 101: REGULATED ENTERPRISES ACCOUNTING FOR THE DISCONTINUATION OF APPLICATION OF FINANCIAL ACCOUNTING STANDARDS BOARD STATEMENT NO 71

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39 Nappi RE, Ferdeghini F, Abbiati I, Vercesi C, Farina C, Polatti F Electrical stimulation (ES) in the management of sexual pain disorders J Sex Marital Ther 2003; 29(suppl 1):103 110 40 Graziottin A Treatment of sexual dysfunction In: Bo K, Berghmans B, van Kampen M, Morkved S, eds Evidence Based Physiotherapy for the Pelvic Floor: Bridging Research and Clinical Practice Oxford: Elsevier, 2005 41 Graziottin A Sexual function in women with gynecologic cancer: a review Ital J Gynec Obst 2001;2:61 68 42 Reissing E, Binik Y, Khalif S Etiological correlates of vaginismus: sexual and physical abuse, sexual knowledge, sexual self-schema, and relationship adjustment J Sex Marital Ther 2003;29:47 59 43 Shanker B, Mc Auley J Pregabalin: a new neuromodulator with broad therapeutic indications Ann Pharmacother 2005;39:2029 2037 44 Mariani L Vulvar vestibulitis sydrome: an overview of non-surgical treatment Eur J Obstet Gynecol Reprod Biol 2002;101:109 112 45 Pukall CF, Binik YM, Khalife S, Amsel R, Abbott FV Vestibular tactile and pain thresholds in women with vulvar vestibulitis syndrome Pain 2002;96:163 175 46 Maria G, Cadeddu F, Brisinda D Management of bladder, prostatic and pelvic oor disorders with botulinum neurotoxin Curr Med Chem 2005;12:247 265 47 Ghazizadah S, Nikzed M Botulinum toxin in the treatment of refractory vaginismus Obstet Gynecol 2004;104: 922 925 48 Leiblum S Vaginismus: a most perplexing problem In: Principles and Practice of Sex Therapy, 3rd edn New York: Guilford, 2000, pp 181 204 49 Katz D, Tabisel R Management of vaginismus, vulvodynia and childhood sexual abuse In: Bourcier AP, McGuire EJ, Abrams P, eds Pelvic Floor Disorders Philadephia, PA: Elsevier Saunders, 2004, pp 360 369

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The continuing applicability of SFAS No 71 has been receiving more and more attention over the last 10 years, particularly with price cap regulation in the telecommunications industry and marketbased or other alternative forms of pricing taking place in the pipeline and electric industries Virtually every major telecommunications company that historically applied SFAS No 71 has now discontinued applying it Also, electric companies, including some of the largest in the industry, in

As implied by its name, the expected long-term rate of return on assets should re ect the expected long-term yield on plan assets available for investment during the ensuing year, as well as the reinvestment that yield in subsequent years The discount rate is a snapshot rate determined on the measurement date used for nancial reporting Paragraph 44 of SFAS No 87 states the following:

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Assumed discount rates shall re ect the rates at which the pension bene ts could be effectively settled It is appropriate in estimating those rates to look to available information about rates implicit in current prices of annuity contracts that could be used to effect settlement of the obligation (including information about available annuity rates currently published by the PBGF) In making those estimates, employers may also look to rates of return on high-quality xedincome investments currently available and expected to be available during the period to maturity of the pension bene ts

SFAS No 87 was published in 1985 In December of 1990, SFAS No 106 was issued, which said the following in Paragraph 186:

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