Accounting Principles and Practices for the Operation of the United States Postal Service's Competitive Products Fund

摘要

The purpose of this report is to present to the PRC Treasury's recommended accounting principles and practices. This report first discusses specific PAEA accounting and CPF income taxation requirements and then provides an accounting approach with regard to the CPF that Treasury believes will best meet these requirements, including identifying and valuing the assets and liabilities for the CPF and determining the assumed federal income tax on the income of the CPF. Under Treasury's recommended accounting approach, the rate determination and calculation of the assumed income tax would necessarily be simplified. Ultimately, however, the PRC will need to determine the optimum accounting approaches that USPS should implement. The accounting and income tax approaches described in this report should serve as the starting points for such future discussions and decisions. Given the size and scope of the USPS's operations as well as the complexity involved in meeting the PAEA accounting and other requirements, Treasury believes that any necessary changes to the existing USPS costing and other systems should be made incrementally and notes that some may need to be implemented over the long term.