Gas Pipeline Uniform Accounting Regulations

Link to law: http://laws-lois.justice.gc.ca/eng/regulations/SOR-83-190/FullText.html

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Gas Pipeline Uniform Accounting Regulations

SOR/83-190NATIONAL ENERGY BOARD ACT
Registration 1983-02-25
Regulations Respecting the Uniform System of Accounts of Gas Pipeline Companies
P.C. 1983-527 1983-02-24His Excellency the Governor General in Council, on the recommendation of the Minister of Energy, Mines and Resources, pursuant to subsection 88(1) of the National Energy Board Act, is pleased hereby to approve the revocation of the Gas Pipeline Uniform Accounting Regulations, C.R.C., c. 1053, and to approve the annexed Regulations respecting the uniform system of accounts of gas pipeline companies made by the National Energy Board.Short Title

1 These Regulations may be cited as the Gas Pipeline Uniform Accounting Regulations.

Interpretation

2 In these Regulations,

Board
Board means the National Energy Board; (Office)
book cost
book cost means, in respect of plant, the amount that is recorded in a plant account without any deduction for accumulated depreciation or amortization or for any other purpose; (valeur comptable)
contingent assets
contingent assets means assets without known value to the company until fulfilment of conditions regarded as uncertain; (actif éventuel)
contingent liabilities
contingent liabilities means liabilities that may, under certain conditions, become obligations of the company but are not direct or assumed obligations on the date of the balance sheet; (passif éventuel)
fiscal year
fiscal year means, in relation to the accounts of a company, the calendar year or the fiscal year approved by the Board for the accounts of the company; (exercice financier)
gas plant in service
gas plant in service means plant used for any aspect of pipeline operations or plant held for use under a definite plan for future gas pipeline operations; (installation de gazoduc en service)
minor item of plant
minor item of plant means an associated part or item included within a plant unit; (article d’installation accessoire)
net salvage value
net salvage value means salvage value minus any removal costs; (valeur nette de récupération)
operator
operator means a company authorized by the Board to operate a gas pipeline; (exploitant)
other plant
other plant means any installation or property that is entirely distinct from and is not operated in connection with the gas pipeline service of the company; (autre installation)
plant
plant means in respect of a gas pipeline company, any installation or property the cost of which is to be recorded in the Plant Accounts listed in Schedule IV; (installation)
plant retired
plant retired means a unit of plant, whether it is replaced or not, that is sold, abandoned, demolished, dismantled or otherwise removed from gas pipeline service; (installation réformée)
plant unit
plant unit means a complete structure, apparatus or item of equipment that constitutes a component of any installation or property that could properly be included in the plant accounts listed in Schedule IV and includes a part of any structure or apparatus where such part is a physically distinct part of such structure or apparatus and the value of such part is material; (unité d’installation)
salvage value
salvage value means the amount received for plant retired, including insurance proceeds, and includes any amount received for material salvage from plant retired where the material is sold; (valeur de récupération)
undivided interest
undivided interest means a beneficial ownership in common of the assets, liabilities, revenues and expenses of a gas pipeline by two or more companies or persons. (copropriété indivise)

SOR/86-998, s. 1(F).

3 A company may submit any question of doubtful interpretation of these Regulations to the Board for consideration and guidance.

SOR/83-249, s. 1;
SOR/83-884, s. 1.

Application

4 These Regulations apply only to a company authorized by the Board to construct or operate a gas pipeline.

5 (1) Every Group 1 company shall

(a) keep separate books of account in Canada in a manner consistent with generally accepted accounting principles;
(b) unless otherwise authorized or instructed by the Board, keep accounts in the manner set out in these Regulations; and
(c) keep a system of accounts as prescribed in these Regulations.

(2) Every Group 2 company

(a) shall keep separate books of account in Canada in a manner consistent with generally accepted accounting principles until the expiration of one year after such time as the Board grants leave to abandon the operation of the pipeline;
(b) shall file a set of audited financial statements with the Board within one hundred and twenty (120) days after the end of each fiscal year of the company;
(c) shall comply with subsections 6(1), (7), (8) and (9); and
(d) is exempt from complying with these Regulations except as prescribed in paragraphs (a) to (c).

(3) In this section,

Group 1 company
Group 1 company means a company listed in Schedule VIII; and (sociétés du groupe 1)
Group 2 company
Group 2 company means any company, other than a Group 1 company, that constructs or operates a gas pipeline. (sociétés du groupe 2)

SOR/86-998, s. 2.

Records

6 (1) A company’s accounting records shall provide sufficient particulars to show fully the facts pertaining to all entries made in the accounts.
(2) A company shall maintain the applicable accounts listed in Schedules I to VII and may, in addition, keep subsidiary accounts for its own purposes.
(3) The account numbers listed in Schedules I to VII shall be set out in the descriptive headings of the applicable ledger accounts, computer print-outs or other accounting records.
(4) All transactions applicable to a month shall be recorded in the accounts for that month and, at the end of that month, trial balances of the accounts shall be prepared.
(5) A company shall close its accounts at the end of each fiscal year.
(6) Final accounting entries for each month shall be made not later than 30 days after the last day of the month, except that the final entries for the last month of each fiscal year may be made within a period not exceeding 90 days from the end of that last month.
(7) The books, accounts and records referred to herein include not only accounting records in a limited technical sense, but all records such as minute books, capital stock records, reports, correspondence memoranda, computer printouts, tapes and card decks that may be useful in determining the history of or facts pertaining to any transaction.
(8) The books, accounts and records shall be readily accessible for examination by representatives of the Board.
(9) Where a gas pipeline is owned in undivided interest, the operator shall maintain all books, accounts and records of the total assets, liabilities, revenues and expenses of the pipeline in a manner that permits ready identification and access to the books, accounts and records of the beneficial owners of the pipeline.
(10) The accounts required to be maintained pursuant to subsection (2) shall be retained until the expiration of one year after leave to abandon the operation of the pipeline has been granted by the Board.

SOR/83-884, s. 2;
SOR/86-998, s. 3.

Account Grouping

Balance Sheet Accounts

7 (1) Balance sheet accounts, set out in Schedule I as account series 100 to 293, shall, in respect of a company, disclose the company’s financial position at the balance sheet date.
(2) The balance sheet accounts referred to in subsection (1) shall record assets, liabilities, share capital, and retained earnings, as the case may be.

Income Accounts

8 (1) Income accounts, set out in Schedule II as account series 300 to 341, shall show a summary of a company’s revenue, expenses and extraordinary items.
(2) A company shall inform the Board of all extraordinary items and shall record them in account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.
(3) A company’s net balance of income or loss shall be transferred to retained earnings at the end of each fiscal year.
(4) In this section, extraordinary item means material gain or loss that is not typical of a company’s normal business activities, is not expected to occur regularly over a period of years and would not be considered a recurring factor in any evaluation of the ordinary operating process of the company.

SOR/86-998, s. 4.

Retained Earnings Accounts

9 Retained earnings accounts, set out in Schedule III as account series 350 to 357, shall show a summary of all changes in balance sheet account 212 (Retained Earnings) for each year and shall include

(a) the balance transferred from income for the year;
(b) prior period adjustments;
(c) miscellaneous retained earnings adjustments;
(d) dividend appropriations; and
(e) income tax applicable to retained earnings adjustments.

SOR/86-998, s. 5(F).

Plant Accounts

10 (1) Plant accounts, set out in Schedule IV as account series 401 to 498, are subsidiary to balance sheet accounts 100 (Gas Plant in Service), 101 (Gas Plant Leased to Others), 102 (Gas Plant Held for Future Use) and 107 (Improvement to Facilities Leased from Others), and shall be used to classify a company’s plant.

(2) Plant accounts shall be supported by subsidiary accounts that record the costs, by location, of

(a) each major facility including each main gathering system, products extraction plant, gas storage facility, compressor station and main pipeline; and
(b) any other facility that is separately located.

(3) Plant accounts shall be maintained to record separately expenditures for each plant addition, replacement and retirement authorized by the Board.
(4) Any installation or property not used in pipeline operations shall be recorded in balance sheet account 110 (Other Plant).

Operating Revenue Accounts

11 Operating revenue accounts, set out in Schedule V as account series 500 to 579, shall be used to classify all revenue of a company from pipeline operations.

Operating and Maintenance Expense Accounts

12 (1) Operating expense accounts, set out in Schedule VI as account series 610 to 729, shall include records of a company’s operating expenses pertaining to pipeline operations.
(2) Maintenance expense accounts, set out in Schedule VII as accounts series 810 to 889, shall include records of a company’s maintenance expenses pertaining to pipeline operations.
(3) The operating and maintenance expenses referred to in subsections (1) and (2) shall be recorded in the appropriate account under the applicable service function referred to in Schedule VI and VII.

(4) The service functions referred to in subsection (3) are

(a) gathering;
(b) products extraction;
(c) gas supply (operating only);
(d) underground storage;
(e) transmission;
(f) general; and
(g) administrative and general (operating only).

(5) Expenses common to more than one operating or maintenance expense account shall, where practicable, be equitably apportioned between such accounts and adequate records showing the basis of such apportionment shall be maintained.
(6) The operating and maintenance expense accounts under the service functions listed in paragraphs (4)(a) to (f) shall be supported by subsidiary accounts that record the expenses, by location as practicable for each major facility such as each main gathering system, products extraction plant, gas storage facility, compressor station, main pipeline system and any other facility that is separately located.

SOR/86-998, s. 6(E).

Clearing Accounts

13 (1) Where it is not possible to record expenditures directly to a particular expense or plant account, a company may maintain clearing accounts for recording the expenditures.
(2) Amounts recorded in clearing accounts shall be regularly distributed to the appropriate expense or plant accounts on an equitable basis.
(3) Any balances in the clearing accounts shall be substantially distributed before the end of each fiscal year unless items held therein relate to a future period.
(4) The net monthly balance in clearing accounts shall be included in account 179 (Other Deferred Debits) or account 279 (Other Deferred Credits), as applicable.
(5) Where an operator maintains clearing accounts for the purpose of distributing monthly balances to the beneficial owners of a pipeline, the accounts shall contain sufficient particulars to permit ready identification and reconciliation with the accounts of the beneficial owners.

Interpretation of Lists of Items

14 (1) An item that appears in a representative list in any account in the schedules shall be included in the corresponding account of a company if the inclusion of the item is consistent with the text of the account.
(2) A representative list shall be considered only as representative and not as excluding from an account any analogous component or item that is omitted from the list.

Plant Acquired or Constructed

General

15 (1) A company shall record in the plant accounts the costs incurred to acquire or construct any plant.
(2) Where the consideration given for plant referred to in subsection (1) is other than money, the money value of the consideration on the day the contract for the acquisition or construction comes into force shall be debited to the applicable accounts and a record of the consideration, in sufficient detail to identify it, shall be retained by the company.
(3) Where a company purchases all or part of the existing facilities of another company, the purchasing company shall prepare and submit to the Board for approval details of the proposed method of accounting for such purchase together with the company’s reasons for the proposed method of accounting.
(4) Where the facilities referred to in subsection (3) are purchased from an affiliated company, the original cost of the facilities to the affiliated company and the accumulated depreciation applicable to the facilities to the date of purchase, as shown in the accounts of the affiliated company, shall be recorded in the accounts of the purchasing company.
(5) Balance sheet account 115 (Gas Plant Under Construction) shall be supported by subsidiary records that record separately each transaction for each project involving plant additions, replacements or relocations.
(6) Where a plant acquired by a company is constructed by or for that company, the costs to be recorded in the plant accounts shall include the elements of cost set out in sections 16 to 27 and section 29.

Cost of Labour

16 (1) Cost of labour for construction of plant shall include the amount paid for labour, including employee benefits, performed by the company’s employees.
(2) Where the employees referred to in subsection (1) are specially assigned to construction work, their pay while so engaged shall be included in the cost of the work.
(3) No charge shall be made to plant accounts for the pay of the company’s employees whose services in connection with construction are merely incidental, except as provided in section 26.
(4) The allocation of travelling and other incidental expenses of the company’s employees shall be made to accounts on the same basis as the distribution of the pay of those employees.

Cost of Materials and Supplies

17 (1) Cost of materials and supplies shall include the purchase price of materials and supplies at the point of free delivery, the cost of ad valorem taxes, inspection, transportation and, where appropriate, a suitable proportion of store expenses.
(2) In determining the cost of materials and supplies, suitable allowance shall be made for all discounts allowed and realized on the purchase thereof.

(3) In debiting the plant accounts with materials and supplies used, allowance shall be made for the value of

(a) unused portions and other salvage;
(b) the materials recovered from temporary pipe, scaffolding and other temporary structures used in construction; and
(c) small tools recovered and usable for other purposes.

Cost of Special Machine and Heavy Work Equipment Service

18 (1) Cost of special machine and heavy work equipment service shall include the cost of labour, material, depreciation, supplies and other costs incurred in maintaining and operating power shovels, scrapers, pile drivers, dredgers, ditchers, material loaders and similar equipment, and any amount paid to others for rent, operation and maintenance of such equipment.
(2) Where a construction project necessitates the purchase of equipment to be used exclusively on the project until the project is completed, the cost of the equipment shall be debited to the accounts representing the cost of the project and while the cost remains so debited no debit shall be made to expenses for depreciation on the equipment.
(3) The amount realized from any subsequent sale of equipment referred to in subsection (2), or the appraised value of any equipment retained after the completion of the project for which it was purchased, shall be credited to the accounts debited with the equipment’s cost.
(4) The appraised value of equipment retained after the completion of the project for which it was purchased shall be debited to the appropriate plant account and, thereafter, for the purposes of accounting, that appraised value shall be considered as the cost of the equipment.

Cost of Transportation

19 (1) Cost of transportation incurred in the construction of plant shall include the cost of transporting men, equipment and material and supplies used for construction purposes.
(2) The cost of transportation of construction material to the point where material is received by the company shall be included, if practicable, in the cost of the material.

Cost of Contract Work

20 Cost of contract work shall include any amount paid for work performed under contract by other companies and individuals.

Cost of Insurance, Injuries and Damages

21 (1) Cost of insurance, injuries and damages shall include

(a) the premiums paid for insuring plant during construction;
(b) the costs incurred for protection against fire and wilful destruction of plant during construction; and
(c) the costs incurred in respect of injuries to persons, damage to property of others and damage to plant incidental to construction.

(2) Insurance recovered or recoverable for compensation for injuries to persons injured during the construction of plant shall be credited to the account or accounts debited with the cost of the injuries.
(3) Insurance recovered or recoverable in respect of property damage incidental to the construction of plant shall be credited to the account or accounts debited with the cost of the damage.
(4) Subject to subsection (5), any injury or damage incidental to the removal of a structure or part thereof shall be debited to the account recording the retirement costs of the structure.
(5) Any injury or damage incidental to the removal of a structure or part thereof that is an encumbrance on newly acquired land by a company shall be included in the cost of that land.

SOR/86-998, s. 7(E).

Cost of Privileges

22 Cost of privileges shall include compensation paid for the temporary use of public and private property in connection with a construction project.

Cost of Engineering Services

23 Cost of engineering services shall include any amount paid to other companies, firms or individuals engaged by the company to plan, design, prepare estimates, supervise, inspect or give general advice and assistance in connection with a construction project.

Earnings and Expenses During Construction

24 Earnings and expenses during the construction of plant shall include all revenues derived during the construction period from property that is included in the cost of plant under construction and all expenses that are attributable to the revenues received.

Cost of Rents

25 Cost of rents shall include any amount paid for the use of construction quarters and office space occupied by construction forces.

Cost of Overhead During Construction

26 (1) Cost of overhead during construction shall include engineering, supervision and administrative salaries and expenses, employee benefits, legal fees, taxes, shop service and other analogous items, to the extent that they may be reasonably considered to be plant costs.
(2) Only actual and reasonable overhead costs shall be assigned to particular jobs or units.
(3) The records supporting the entries for cost of overhead during construction shall show the total amount of each type of overhead expenditure capitalized in the year and the basis of distribution thereof in accordance with the instructions set out in account 498 (Overhead Charged to Construction).

Allowance for Funds Used During Construction

27 (1) A company may, at its option, capitalize an allowance for funds used during construction.
(2) The allowance for funds used during construction shall be calculated in accordance with the instructions set out in account 497 (Allowance for Funds Used During Construction), and may, at the option of the company, be prorated over the appropriate depreciable plant accounts.

Date Placed in Service

28 (1) On the date that plant is placed in service, the company shall cease to capitalize an allowance for funds used during construction on the plant and shall compute and charge to the appropriate account an amount representing depreciation as determined under sections 49 to 57.
(2) The date that the plant is in service, for the purpose of subsection (1), shall not be later than the first day of the month following issuance of a Leave to Open Order by the Board.

SOR/86-998, s. 8.

Analogous Elements of Cost

29 (1) Elements of cost analogous to those defined in sections 16 to 27 may be included in the cost of plant.
(2) The costs incurred in disposing of material excavated may be included as an element referred to in subsection (1).

Additions to Plant

General

30 (1) For the purposes of these Regulations, additions to plant shall include

(a) increases in plant through purchase or construction of additional plant,
(b) the replacement of existing plant units, and
(c) the capitalization of major renewals to plant

and, subject to the approval of the Board, may include substantial improvements made to existing plant in order to make such plant more useful, more efficient, more durable or of greater capacity than the plant was when it was originally placed in service.

(2) The cost of additions referred to in subsection (1) shall be debited to the appropriate plant accounts.
(3) Typical elements of construction are set out in sections 16 to 27 and section 29.
(4) All expenditures relevant to new construction shall be capitalized.
(5) After the completion of initial construction, only the costs directly connected with additions or replacements of plant shall be capitalized.
(6) All property charged to plant accounts shall consist of plant units or minor items of plant.

Plant Units

31 (1) Each company shall establish its own list of plant units for each plant account.
(2) A company’s list of plant units shall be filed with and be subject to the approval of the Board.
(3) Subject to the approval of the Board, the list of plant units, as filed, may be revised and amended from time to time.
(4) The cost of an additional plant unit shall be debited to the appropriate plant account.
(5) The book cost of a plant unit retired, whether replaced or not, shall be credited to the appropriate plant account.
(6) Where a plant unit is replaced, the book cost of the original plant unit shall be credited to the appropriate plant account and the cost of the replacement unit shall be debited to the appropriate plant account.

Minor Items of Plant

32 (1) Subject to section 33, the cost of a minor item of additional plant not constituting a replacement but identified with a plant unit shall be debited to the appropriate plant account.
(2) The cost of a minor item of plant that constitutes a replacement shall be debited to the appropriate expense account and the book cost of the minor item replaced shall not be adjusted.

Minimum Rules for Minor Items of Plant

33 (1) Where a minor item of plant is acquired at a cost of less than $5,000, the cost shall be debited to expense.

(2) A company shall not

(a) combine unrelated items of plant for the purpose of excluding the items from the provisions of subsection (1); or
(b) divide expenditures made under a general plan for related items that cost $5,000 or more per item into smaller parcels for the purpose of debiting capital items to expense.

(3) With the approval of the Board after the filing of a request by a company, the company may, for the purpose of its accounting, adopt a limit of less than the amount set out in subsection (1) for any class of plant.
(4) No change may be made in the amount of a limit referred to in subsection (3) except with the prior approval of the Board.

Major Renewals

34 (1) In this section, cost of renewals means the aggregate of

(a) the cost of material, other than old parts remaining in a rebuilt plant unit, and
(b) the cost of labour used in the rebuilding process,

but does not include the cost of dismantling and repairing old parts that are re-used.

(2) Subject to subsection (3), where the cost of renewals to parts of a plant unit exceeds 50 per cent of the new replacement cost of a plant unit of the same kind and class, the plant unit shall be considered as rebuilt.
(3) Subsection (2) does not apply to the renewal of a plant unit where the new replacement cost of that unit would not exceed $120,000.
(4) A rebuilt plant unit shall be accounted for as an addition and the old plant unit that the rebuilt plant unit replaced shall be accounted for as retired from service.

(5) Subject to subsection (6), the charge to the appropriate plant account for a rebuilt plant unit shall be the aggregate of

(a) the value of old parts remaining in the rebuilt plant unit; and
(b) the cost of labour and material applied.

(6) The cost of dismantling and repairing old parts used in the renewal of plant shall be debited to maintenance expense.

Second-Hand Plant

35 Where second-hand plant not previously owned by the company is acquired in a physical condition that necessitates extensive expenditures to bring it up to the standard required by the company, the expenditures shall be debited to the appropriate plant account.

Retirements of Plant

General

36 (1) Where a plant unit, whether replaced or not, is retired from pipeline operations, the book cost of the plant unit shall be credited to the appropriate plant account.
(2) The book cost and the costs of removal of a depreciable plant unit retired and not replaced shall be debited to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable.
(3) The net salvage value of a plant unit retired shall be credited to the accumulated depreciation or accumulated amortization account referred to in subsection (2).
(4) Each retirement project shall be supported by subsidiary records that show separately the details thereof.

Book Cost

37 Where the book cost of any retired plant is not recorded separately, the book cost of that plant shall be its appropriate share of the book cost of the entire group in which the particular plant is located.

Salvage Value

38 (1) Where salvaged material is retained for use by a company, the original cost, estimated if not known, of the material, less a fair allowance for depreciation, shall be debited to account 150 (Plant Materials and Operating Supplies).
(2) The salvage value of depreciable plant or salvaged material therefrom shall be credited to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable.
(3) The removal costs incurred in dismantling or demolishing retired depreciable plant and in recovering salvage therefrom shall be debited to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable, except that the current cost of removing and replacing a minor item of plant in maintenance operations shall be included in the appropriate expense account.

Ordinary Retirement

39 (1) In respect of depreciable plant, ordinary retirement means a retirement of depreciable plant that results from causes reasonably assumed to have been anticipated or contemplated in prior depreciation or amortization provisions.
(2) There shall be no debit or credit to income or to retained earnings for an ordinary retirement.

Extraordinary Retirement

40 (1) In respect of depreciable plant, extraordinary retirement means a retirement of depreciable plant that results from causes that could not reasonably have been anticipated or contemplated in previously making provision for depreciation or amortization, including such causes as fire, storm, flood, premature obsolescence or unexpected and permanent shutdown of an entire operating assembly for reasons other than ordinary wear and tear.
(2) Where the gain or loss on an extraordinary retirement is material, the company shall inform the Board and shall transfer the amount of the gain or loss from account 105 (Accumulated Depreciation-Gas Plant) or account 106 (Accumulated Amortization-Gas Plant) to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.
(3) Notwithstanding subsection (2), a company may, with the approval of the Board, transfer all or part of the amount of a material gain or loss on an extraordinary retirement to account 279 (Other Deferred Credits) or account 171 (Extraordinary Plant Losses), as applicable, for amortization at a rate approved by the Board.
(4) Immaterial gains or losses resulting from extraordinary retirements shall be accounted for in the same way as ordinary retirements.

SOR/86-998, s. 9.

Pipeline Relocations

41 (1) Where a plant unit of pipeline is relocated, it shall be considered as plant retired and its book cost shall be credited to the appropriate plant account.
(2) Where a plant unit of pipeline has been relocated, the relocated plant unit shall be considered as an addition and the cost shall be debited to the appropriate plant account.
(3) Where a company’s pipeline or any part thereof is located in accordance with an agreement that may require the company to relocate all or part of its pipeline and the circumstances are such that the company has no reasonable alternative but to relocate more than a plant unit of pipeline, the company may, with the approval of the Board, debit the costs of relocation to expenses for the period in which the relocation was carried out.
(4) Where a relocation of a type referred to in subsection (3) results from action by a governmental authority, the cost of relocation may be accounted for in the manner set out in subsection (3).

Line Pipe Replacements

42 (1) Where a plant unit of line pipe is replaced with other pipe in the same location, a company shall debit to the appropriate plant account the cost of opening and back filling the trench together with the cost of hauling, laying and connecting the pipe, the cost of removing retired pipe from the trench and other costs of pipeline construction.
(2) The cost of reconditioning line pipe not removed shall be accounted for as repairs and not as retirements or replacements.
(3) Where the plant unit of line pipe referred to in subsection (1) is not replaced by new pipe in the same location, the cost of opening and back filling the trench from which the pipe is removed together with the cost of removing the pipe shall be accounted for as cost of salvage.

Other Plant

43 (1) Where plant is no longer required for pipeline purposes but is retained by the company, its book cost shall be transferred to account 110 (Other Plant) and the accumulated depreciation or accumulated amortization, if any, with respect thereto shall be transferred from account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant) to account 111 (Accumulated Depreciation — Other Plant) or account 112 (Accumulated Amortization — Other Plant), as applicable.
(2) Where depreciable other plant included in account 110 (Other Plant) is retired or sold, the book cost, salvage and removal costs shall be recorded in account 111 (Accumulated Depreciation — Other Plant).
(3) Where the gain or loss from the sale or retirement of depreciable other plant is material, the company shall inform the Board and shall transfer the amount of the gain or loss from account 111 (Accumulated Depreciation — Other Plant) or account 112 (Accumulated Amortization — Other Plant) to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.
(4) Where the gain or loss from the sale or retirement of depreciable other plant included in account 110 (Other Plant) is not material, the company shall transfer the amount of the gain or loss from account 111 (Accumulated Depreciation — Other Plant) or account 112 (Accumulated Amortization — Other Plant) to account 319 (Other Income) or account 329 (Other Income Deductions), as applicable.

SOR/86-998, s. 10.

Land Retired or Sold

44 (1) Where land is retired or sold, account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others), account 102 (Gas Plant Held for Future Use) or account 110 (Other Plant) shall be credited with the book cost of the land.
(2) Where the gain or loss from the sale or retirement of land is material, the company shall inform the Board and shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.
(3) Where the gain or loss from the sale or retirement of land is not material, the company shall transfer the amount of the gain or loss to account 319 (Other Income) or to account 329 (Other Income Deductions), as applicable.

SOR/86-998, s. 11.

Maintenance

General

45 The cost of repairs recorded in the maintenance accounts for gas plant shall include

(a) the cost of inspection to determine the repairs that are necessary;
(b) the cost of adjusting, repairing or replacing parts; and
(c) the cost of inspection, testing and running of parts to determine whether or not the repairs have been properly made and the repaired item is ready for service.

46 (1) Maintenance accounts kept in accordance with Schedule VII shall be debited with the costs of repairing and maintaining plant and shall include

(a) incidental costs including the construction and removal of false work in connection with maintenance;
(b) the cost of relocating pipeline plant where retirement accounting for units of plant is not involved;
(c) the cost of raising or lowering line pipe in the trench where retirement accounting for units of plant is not involved;
(d) the cost of repairing fences, sidewalks, driveways and streets within or adjacent to the plant;
(e) the cost of installing, maintaining and removing temporary facilities to prevent any interruptions in operations; and
(f) the cost of maintaining public improvements included in account 176 (Public Improvements).

(2) Where employees whose pay is normally debited to operating expenses

(a) mow and beautify grounds and buildings,
(b) periodically restore seasonal features such as gardens, shrubbery and lawns, or
(c) clear and remove snow, ice and fallen timber,

their pay and any other costs arising from such employment may be debited to the maintenance or operating account, at the option of the company.

Equalization of Maintenance Expenses

47 Where a company prepares a budget for its maintenance expenses for a fiscal year, the following procedure may be followed:

(a) the actual monthly expenses shall be debited to the appropriate maintenance accounts;
(b) the excess of an actual expense over a budgeted monthly expense shall be debited to account 275 (Gas Cost and Maintenance Equalization) and credited to the appropriate expense account;
(c) the excess of a budgeted expense over an actual monthly expense shall be debited to the appropriate expense account and credited to account 275 (Gas Cost and Maintenance Equalization); and
(d) at the end of the fiscal year, the balance in account 275 (Gas Cost and Maintenance Equalization) shall be transferred to the appropriate expense account.

Depreciation

General

48 In sections 49 to 57,

group system
group system means a system by which a weighted average rate of depreciation is calculated for a particular group of plant accounts, a plant account, or a group of assets within a plant account, and established in recognition of the fact that some part of the investment in a group of assets may be recovered through salvage realization and that there will be variations in the service lives of the assets constituting the group, even among assets of the same class; (système de dépréciation en groupe)
service life
service life means the period of time between the placement of plant in service and its retirement; (vie utile)
service value
service value means the book cost of plant minus the estimated net salvage value of that plant. (valeur de service)

49 (1) Under the group system, in the case of an ordinary retirement of an individual asset in a group of assets, the accumulated depreciation attributable to the asset shall, for the purposes of these Regulations, be considered to be equal to the cost of the asset minus any amount that may reasonably be recoverable through salvage realization, whether or not the actual service life of the asset is shorter or longer than the anticipated average service life for the group.
(2) Assets, within a group of assets, remaining in use after reaching their average service life expectancy shall not be regarded as fully depreciated until actual retirement or until the group is fully depreciated, whichever is earlier.

50 (1) Charges for depreciation with respect to accounts that are classed by section 51 as being accounts covering assets that are depreciable shall be computed in conformity with the group system.

(2) A company shall charge depreciation by using such one of the following methods as is chosen by the company and approved by the Board for use by the company:

(a) the straight line method;
(b) the use or unit of production method;
(c) the diminishing value method; or
(d) any other systematic method consistent with generally accepted accounting principles.

SOR/86-998, s. 12.

Depreciable Assets

51 (1) All plant accounts, with the exception of accounts 410, 420, 450, 460 and 480 (Land), are classed as accounts covering assets that are depreciable and, for the purpose of the group system of depreciation accounting, depreciable asset accounts may be grouped according to the nature of the plant included in each account.
(2) Accounts 401 (Franchises and Consents) and 402 (Other Intangible Plant) are depreciable only to the extent of items included therein that are subject to recognizable loss in value.

Depreciation Charges

52 (1) There shall be debited each month to expenses or other appropriate accounts and credited to the accounts for accumulated depreciation amounts that will allocate, in a systematic and rational manner, the service value of plant over its estimated service life.

(2) Monthly depreciation charges under the straight line method shall be computed by

(a) applying the annual percentage rate of depreciation to the depreciation base as of the first of each month and dividing the result by 12; or
(b) with the prior approval of the Board, applying the annual percentage rate of depreciation to the depreciation base at the beginning of the company fiscal year and dividing the result by 12.

(3) Monthly depreciation charges under the use or unit of production method shall be computed by applying the appropriate rate or use or production per unit for the year to the number of units of use or production for the month.
(4) Monthly depreciation charges under the diminishing value method shall be computed by applying the annual percentage rate to the depreciation base as of the first of each month and dividing the result by 12.
(5) A company shall compute depreciation in accordance with subsection 28(1).
(6) The monthly debits for depreciation of plant included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use) shall be debited to account 303 (Depreciation).
(7) Depreciation on assets included in account 110 (Other Plant) shall be debited to account 311 (Expense of Other Plant).

SOR/86-998, s. 13.

Rates of Depreciation

53 (1) A separate depreciation rate shall be used in computing depreciation charges for each group of plant accounts, each plant account or each group of assets within a plant account.
(2) In determining the rate of depreciation, consideration shall be given to all relevant factors including variations in use, increasing obsolescence or inadequacy.
(3) Each depreciation rate used shall be approved by the Board; but, where no rate has previously been approved for any class of plant, an interim rate as estimated by the company shall be used.

54 (1) As soon as the information can be assembled, a company shall file with the Board depreciation rates estimated to be appropriate for each group of plant accounts, each plant account or each group of assets within a plant account.
(2) The rates referred to in subsection (1) shall be based on the service value and estimated service life of plant, as developed by a study of the company’s history and experience and such engineering and other information as may be available with respect to future operating conditions.
(3) The rates referred to in subsection (1) shall be established to produce a charge for depreciation equal to the sum of the amounts that would otherwise be chargeable as depreciation for each of the various classes of plant included in a group of plant accounts, for each plant account or for each group of assets within a plant account.
(4) The rates referred to in subsection (1) may be developed by a company by the method deemed most appropriate for the portrayal of the depreciation experienced and, when filed, shall be accompanied by a statement showing their basis and the methods employed in their computation.
(5) A company shall, at any time, upon direction of the Board, conduct a study on the suitability of depreciation rates in use in the light of the company’s history and available engineering data, and shall submit to the Board for approval a report of the results of such study together with recommendations for any desired changes in depreciation rates.

55 (1) Where, in the opinion of a company, depreciation rates that have been filed with the Board are no longer applicable, the company shall file revised rates with the Board for approval.
(2) Where a company acquires plant for which no depreciation rates have been approved by the Board, the company shall immediately compile and submit to the Board its estimate of the appropriate depreciation rates, developed in accordance with the provisions of sections 53 and 54.

Accumulated Depreciation

56 (1) Accumulated depreciation shall be subdivided to show separately the amount applicable to

(a) each group of plant accounts,
(b) each plant account, or
(c) each group of assets within a plant account,

for which a separate weighted average rate of depreciation has been established.

(2) Where the amount is material, accumulated depreciation applicable to the assets in one depreciation group shall not be transferred by a company to another depreciation group without the approval of the Board.

Plant Records

57 A company shall keep records of depreciable plant and plant retirements in sufficient detail to show the service life of plant that has been retired and to permit the service life of plant to be estimated by the use of the mortality method or other appropriate method.

Amortization

58 For the purposes of sections 59 and 60, amortization means the gradual recovery of an amount included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others), account 102 (Gas Plant Held for Future Use) or account 110 (Other Plant) by distributing such amount over a fixed period or over the estimated remaining life of the plant.

59 Where it is anticipated by a company that plant will be abandoned owing to the exhaustion of a particular source of traffic, obsolescence or any other cause, the company shall not change from depreciation accounting to amortization accounting without first obtaining the authorization of the Board.

60 (1) The monthly debits for amortization of gas plant included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use) shall be debited to account 304 (Amortization).
(2) Amortization on assets included in account 110 (Other Plant) shall be debited to account 311 (Expense of Other Plant).

Insurance

61 (1) Insurance premiums paid to insurance companies shall be debited to account 723 (Insurance), unless the premiums are chargeable to clearing accounts or relate to

(a) the construction of pipeline facilities; or
(b) employee benefits.

(2) Insurance costs relative to the construction of pipeline facilities shall be debited pro rata to the appropriate plant accounts.
(3) Insurance costs relative to employee benefits shall be debited to account 725 (Employee Benefits).
(4) Any amount recovered from the insurance referred to in subsection (1), (2) or (3) shall be credited to the account or accounts originally debited with the related loss or expense.
(5) Where a company elects to create and maintain reserves for self-insurance, account 723 (Insurance) shall be debited with estimated amounts in lieu of commercial insurance premiums, and account 290 (Insurance Appropriations) shall be credited with the estimated amounts.
(6) A schedule of risks covered by self-insurance shall be kept showing the character of the risk covered and the rates used to compute estimated amounts referred to in subsection (5).
(7) The rates referred to in subsection (6) shall not exceed commercial rates for the same protection.
(8) Where, as a result of an event or accident covered by self-insurance, costs are incurred of a type that would normally be debited to an expense account, such costs shall be debited to the insurance appropriations account and any excess of the expenditure over the applicable self-insurance shall be debited to the appropriate expense account.
(9) Where the self-insurance schedule referred to in subsection (6) covers the retirement of plant, the accounting for the retirement shall be as outlined in section 36 and the self-insurance applicable to the retired item shall be transferred from account 290 (Insurance Appropriations) to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable.
(10) Where a company insures with a commercial insurance company any risks covered by self-insurance, the premiums for the insurance policy shall be debited to the insurance appropriations account and any recoveries under the policies shall be credited thereto.

SOR/86-998, s. 14(E).

Funds and Appropriations

62 (1) Cash, securities or other assets set aside for a specific purpose shall be debited to account 122 (Sinking Funds), account 123 (Miscellaneous Special Funds) or account 131 (Special Deposits), as applicable, and the appropriate asset account shall be credited.
(2) Income from assets held in account 122 (Sinking Funds) and account 123 (Miscellaneous Special Funds) shall be credited to account 316 (Income from Sinking and Other Funds).
(3) Where a mortgage or any contractual obligation entered into by a company requires that income from assets held in a fund be added to that fund, the company shall make the necessary transfer to the fund account.
(4) Where a transfer referred to in subsection (3) is to account 123 (Miscellaneous Special Funds), and represents a company’s contribution to account 291 (Welfare and Pension Appropriations) or to account 290 (Insurance Appropriations), the company shall concurrently debit account 329 (Other Income Deductions) and credit account 291 or 290, as applicable, with the amount transferred.
(5) A company’s contribution to account 291 (Welfare and Pension Appropriations) or to account 290 (Insurance Appropriations) shall be provided by debits to expenses.
(6) Where the gain or loss on the sale of assets recorded in account 122 (Sinking Funds) or account 123 (Miscellaneous Special Funds) is material, the company shall inform the Board and shall transfer the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.
(7) Where the gain or loss on the sale of assets referred to in subsection (6) is not material, the company shall transfer the gain or loss to account 316 (Income from Sinking and Other Funds) or account 329 (Other Income Deductions), as applicable.

SOR/86-998, s. 15.

Securities Owned

General

63 (1) In this section and sections 64 to 68, cost means the amount of money paid by a company to acquire securities or, where the consideration paid for the securities is other than money, the money value of the consideration at the time the securities are acquired.
(2) A company shall record the cost of its investment in securities, excluding amounts paid for accrued interest and accrued dividends, in the appropriate accounts at the time of acquisition of the securities.
(3) [Revoked, SOR/86-998, s. 16]
(4) Where securities having a fixed maturity date and recorded in account 132 (Temporary Cash Investments), account 120 (Investments in Affiliated Companies), account 121 (Other Investments), account 122 (Sinking Funds) or account 123 (Miscellaneous Special Funds) are purchased at a discount or premium, that discount or premium may be amortized over the remaining life of the securities by periodic debits or credits to the account in which the cost of the securities is recorded, with corresponding credits or debits to account 314 (Income from Investments), account 315 (Income from Affiliated Companies) or account 316 (Income from Sinking and Other Funds), as applicable, and if the amount to be amortized does not exceed $1,000, a company may write off the total discount or premium at one time.
(5) No amortization entries shall be recorded in respect of discounts on securities held as investments unless there is reason to believe that the securities will be disposed of at a sum equal to their par value, or that the par value will be collected at maturity.

SOR/86-998, s. 16.

Temporary Cash Investments

64 (1) Where the gain or loss on the sale of assets recorded in account 132 (Temporary Cash Investments) is material, the company shall inform the Board and shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.
(2) A gain or loss on a sale referred to in subsection (1) that is not material shall be transferred to account 314 (Income from Investments).

SOR/86-998, s. 17.

65 (1) Where the amount required to provide for reductions in the market value of temporary cash investments is material, the company shall inform the Board and shall debit the amount required to account 341 (Extraordinary Income Deductions) and concurrently credit account 132 (Temporary Cash Investments).
(2) Where the amount required to provide for reductions in the market value of temporary cash investments is not material, it shall be debited to account 314 (Income from Investments) and concurrently credited to account 132 (Temporary Cash Investments).

SOR/86-998, s. 18.

Investments in Affiliated Companies and Other Investments

66 (1) Where the gain or loss on the sale of assets recorded in account 120 (Investments in Affiliated Companies) or account 121 (Other Investments) is material, the company shall inform the Board and shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.
(2) A gain or loss on a sale referred to in subsection (1) that is not material shall be transferred to account 319 (Other Income) or to account 329 (Other Income Deductions), as applicable.

SOR/86-998, s. 19.

67 (1) A company shall be governed by recognized accounting principles in reducing the value at which securities are recorded in account 120 (Investment in Affiliated Companies) or account 121 (Other Investments) to reflect anticipated loss in value.
(2) Permanent impairment of the value of securities referred to in subsection (1) shall be recorded in the accounts but fluctuations in market value shall not be recorded.
(3) Where a reduction in the value of securities referred to in subsection (1) is material, the company shall inform the Board and shall debit the amount of the reduction to account 341 (Extraordinary Income Deductions).
(4) Where a reduction in the value of securities referred to in subsection (1) is not material, the company shall debit the amount of the reduction to account 326 (Provision for Loss in Valuation of Investments).

SOR/86-998, s. 20.

68 (1) Subject to the approval of the Board, a company may write down its investment in a separately incorporated company controlled by the company to reflect the company’s share of the losses of the separately incorporated company, where the operation of such a company is considered to be an integral part of the company’s gas transportation system.
(2) A company shall credit the amount of a write-down referred to in subsection (1) to account 126 (Allowance for Loss in Value of Investments) and debit that amount to account 326 (Provision for Loss in Valuation of Investments) unless the amount of the write-down is material, in which case it shall be debited to account 341 (Extraordinary Income Deductions).
(3) Subject to the approval of the Board, where a company provides for a loss in accordance with this section and the separately incorporated company makes a profit in a subsequent year, the controlling company shall adjust the allowance for losses recorded in account 126 (Allowance for Loss in Value of Investments) by debiting the amount of the profit to that account and concurrently crediting account 326 (Provision for Loss in Valuation of Investments) unless the profit is material, in which case it shall be credited to account 331 (Extraordinary Income).

Securities Issued

General

69 (1) In sections 70 to 74,

discount
discount means the excess of the par or stated value of any security issued or resold over the value of the consideration received for the security; (escompte)
expense

expense includes

(a) any commission paid for marketing equity and debt securities,
(b) the cost of preparing and distributing prospectuses,
(c) the cost of preparing certificates and other similar documents, and
(d) legal fees in respect of the issuance of securities; (dépenses)

premium
premium means the excess value of the consideration received from the issue or resale of securities over the par or stated value of the securities. (prime)

(2) Where a prospectus includes the issuance of long-term debt and capital stock, the items of expense that are distinguishable as to debt or stock shall be segregated and the remaining expenses shall be apportioned by using the ratio that the proceeds of long-term debt or capital stock bear to the total proceeds.
(3) Separate ledger accounts shall be maintained for each class or subclass of securities.

Share Capital

70 (1) Premiums received on the issuance of par value shares shall be credited to account 210 (Contributed Surplus).
(2) The cost of issuing shares shall be debited to account 177 (Share Capital Expense) and subsequent costs of issuing shares shall be debited to account 728 (Other General Expense).
(3) [Revoked, SOR/86-998, s. 21]

SOR/86-998, s. 21.

Long-term Debt

71 (1) The total discount and expense or the total premium less expense, as the case may be, associated with each series of each class of long-term debt shall be recorded in a separate subaccount of account 170 (Unamortized Debt Discount and Expense) or account 270 (Unamortized Debt Premium and Expense).
(2) All the debit balances in the subaccounts referred to in subsection (1) shall be considered as part of the balance in account 170 (Unamortized Debt Discount and Expense).
(3) All the credit balances in the subaccounts referred to in subsection (1) shall be considered as part of the balance in account 270 (Unamortized Debt Premium and Expense).
(4) Where the total discount and expense or the total premium less expense applicable to any particular issue of securities does not exceed $25,000, a company, at the time of issue, may debit the entire amount to account 321 (Amortization of Debt Discount, Premium and Expense), as applicable.

72 In each fiscal period of a company, there shall be debited to account 321 (Amortization of Debt Discount, Premium and Expense), and credited to account 170 (Unamortized Debt Discount and Expense), a portion of each of the debit balances included in account 170 and the calculation of that portion shall be based on the ratio of the fiscal period to the remaining life of the respective securities, calculated from the beginning of the fiscal period to the date of maturity of the debt to which the charges relate, and correspondingly there shall be credited to account 321 (Amortization of Debt Discount, Premium and Expense) and debited to account 270 (Unamortized Debt Premium and Expense), a similar portion of each of the credit balances included in account 270.

73 (1) Where any issue or series of long-term debt of a company is redeemed before its maturity date, otherwise than by exchange or conversion into shares, the amount of the unamortized debt discount and expense or unamortized premium less expense applicable to the portion of the debt redeemed shall be credited to account 170 (Unamortized Debt Discount and Expense) or debited to account 270 (Unamortized Debt Premium and Expense), as applicable, and where the amount is not material, concurrently debited or credited to account 321 (Amortization of Debt Discount, Premium and Expense) as applicable, in the year of redemption.
(2) Where the amount referred to in subsection (1) is material, the company shall inform the Board and shall debit the amount to account 341 (Extraordinary Income Deductions) or credit the amount to account 331 (Extraordinary Income), as applicable.
(3) Notwithstanding subsections (1) and (2), where an issue or series of long-term debt of a company is redeemed before its maturity date by refunding through the issuance of new long-term debt, the company may, where the amount is not material, amortize the amount of unamortized discount and expense or unamortized premium less expense applicable to the portion of the debt redeemed, by regular debits or credits as applicable, to account 321 over a period not exceeding the lesser of the remainder of the original life of the issue or series redeemed or the life of the new long-term debt.
(4) Where the amount referred to in subsection (3) is material, the company shall inform the Board and shall debit the amount to account 341 (Extraordinary Income Deductions), or credit the amount to account 331 (Extraordinary Income), as applicable.
(5) Where an issue or series of long-term debt of a company is redeemed before its maturity date by exchange for or conversion into capital stock of the company, the manner of accounting for the transaction shall be subject to the prior approval of the Board.

SOR/86-998, s. 22.

Company Long-term Debt Owned

74 (1) Where any long-term debt is reacquired and included in account 221 (Company Long-term Debt Owned), and the amount of the difference between the amount paid upon reacquisition and the par value plus the applicable unamortized premium or minus the applicable unamortized discount and expense, as the case may be, is not material, the amount of the difference shall be debited to account 329 (Other Income Deductions) or credited to account 319 (Other Income), as applicable.
(2) Where the amount of the difference referred to in subsection (1) is material, the company shall inform the Board and shall debit the amount of the difference to account 341 (Extraordinary Income Deductions) or credit that amount to account 331 (Extraordinary Income), as applicable.

SOR/86-998, s. 23.

Current Assets and Liabilities

Current Assets

75 (1) Subject to subsection (2), current assets shall include cash and other assets that are not restricted from use for current operations and, in the normal course of operations, are expected to be converted into cash or consumed in the production of income within a one-year period.
(2) Materials and supplies shall be included in current assets notwithstanding that they may not be consumed in a one-year period.
(3) Current assets that are of doubtful value shall be written down or written off to the appropriate income or operating expense accounts to an extent required to adjust their value, but uncollectable accounts receivable shall be debited to account 145 (Allowance for Doubtful Accounts) to the extent that an allowance has been provided therefor.

Current Liabilities

76 (1) Current liabilities shall include obligations that are payable on demand or that mature or become due within one year.

(2) Notwithstanding subsection (1), loans payable that have a maturity date within a one-year period and

(a) have been incurred primarily for the construction of plant, and
(b) will be replaced by long-term financing,

may be included in account 249 (Other Long-term Debt).

Accrued Assets and Liabilities

77 (1) Where, during any month, a transaction has occurred that affects the accounts of a company but the amount involved cannot be determined with accuracy at the end of that month, the amount shall be estimated and included in the proper accounts, unless it would not appreciably affect the accounts.
(2) Where the actual amount involved in a transaction referred to in subsection (1) has been finally determined, the estimated amount referred to in that subsection shall be adjusted to show the actual amount.
(3) [Revoked, SOR/86-998, s. 24]

SOR/86-998, s. 24.

Prior Period Adjustments

78 (1) Where, in any fiscal year of a company, the amount of an adjustment to the income of a company for a prior fiscal year is material and the amount of the adjustment

(a) is specifically identified with and directly related to the business activities of a particular prior fiscal year,
(b) is not attributable to economic events or obsolescence occurring subsequent to the date of the financial statements for such prior fiscal year,
(c) depends primarily on decisions or determinations by persons other than the company, and
(d) could not be reasonably estimated prior to such decisions or determinations,

the company shall inform the Board and shall record the amount of the adjustment in account 351 (Prior Period Adjustments).

(2) Where, in any fiscal year of a company, the amount of an adjustment to the income of a company for a prior fiscal year is not material, the company shall include the amount of the adjustment in the same accounts in which it would have been recorded if it had been recorded in that prior fiscal year.

(3) For the purposes of this section, the following shall be applied in determining materiality:

(a) items of a similar nature shall be considered in the aggregate and dissimilar items shall be considered individually; and
(b) to qualify for inclusion as a prior period item, the item should exceed the greater of one per cent of the total operating revenue and 10 per cent of the balance transferred from utility income accounts to account 350 (Balance Transferred from Income) for the year.

SOR/86-998, s. 25.

Contingent Assets and Liabilities

79 (1) [Revoked, SOR/86-998, s. 26]
(2) The par value of securities or the total value of other obligations for which a company with other parties is jointly and severally liable shall be stated as a liability only in the amount that was not primarily assumed by the other parties under the terms of the agreement by which the company and the other parties become jointly and severally liable.
(3) The amount by which the value referred to in subsection (2) exceeds the liability stated or subsequently established according to the agreement shall be shown as a contingent liability.

SOR/86-998, s. 26.

Affiliated Companies

80 (1) For the purposes of these Regulations, one company is affiliated with another company if one of them is the subsidiary of the other or both are subsidiaries of the same company or each of them is controlled by the same person.

(2) For the purposes of these Regulations, a company is a subsidiary of another company if

(a) it is controlled by

(i) that other company,
(ii) that other company and one or more companies each of which is controlled by that other company, or
(iii) two or more companies each of which is controlled by that other company; or

(b) it is a subsidiary of a company that is subsidiary to that other company.

(3) For the purposes of these Regulations, a company is controlled by another company or person or by two or more other companies if

(a) shares of the company carrying more than 50 per cent of the votes for the election of directors are held, otherwise than by way of security only, by or for the benefit of that other company or person or by or for the benefit of such other companies; and
(b) the votes carried by shares referred to in paragraph (a) are sufficient, if exercised, to elect a majority of the board of directors of the company.

SCHEDULE I(ss. 6, 7 and 14)

Index of Accounts

Balance Sheet Accounts

Assets

Plant

100 
Gas Plant in Service

101 
Gas Plant Leased to Others

102 
Gas Plant Held for Future Use

103 
Retirement Work in Progress

105 
Accumulated Depreciation — Gas Plant

106 
Accumulated Amortization — Gas Plant

107 
Improvements to Facilities Leased from Others

110 
Other Plant

111 
Accumulated Depreciation — Other Plant

112 
Accumulated Amortization — Other Plant

115 
Gas Plant Under Construction

116 
Other Plant Under Construction

Investments

120 
Investments in Affiliated Companies

121 
Other Investments

122 
Sinking Funds

123 
Miscellaneous Special Funds

126 
Allowance for Loss in Value of Investments

Current

130 
Cash

131 
Special Deposits

132 
Temporary Cash Investments

140 
Accounts Receivable — Trade

141 
Accounts Receivable — Other

142 
Accounts Receivable — Affiliated Companies

145 
Allowance for Doubtful Accounts

147 
Interest and Dividends Receivable

150 
Plant Materials and Operating Supplies

151 
Other Material and Supplies

152 
Gas Stored Underground — Available for Sale

153 
Transmission Line Pack Gas

160 
Prepayments

162 
Other Current Assets

Deferred Debits

170 
Unamortized Debt Discount and Expense

171 
Extraordinary Plant Losses

172 
Preliminary Survey and Investigation Charges

173 
Other Work in Progress

176 
Public Improvements

177 
Share Capital Expense

178 
Organization Expense

179 
Other Deferred Debits

Liabilities

Shareholders’ Equity

200 
Share Capital

210 
Contributed Surplus

212 
Retained Earnings

216 
Excess of Appraised Value of Plant Over Depreciated Cost

Long-term Debt

220 
Long-term Debt

221 
Company Long-term Debt Owned

248 
Advances from Affiliated Companies

249 
Other Long-term Debt

Current

250 
Loans and Notes Payable

251 
Accounts Payable and Accrued

252 
Accounts Payable — Affiliated Companies

253 
Dividends Payable

254 
Customers’ Security Deposits

256 
Taxes Accrued

257 
Interest Payable and Accrued

258 
Long-term Debt Due Within One Year

259 
Other Current Liabilities

Deferred Credits

270 
Unamortized Debt Premium and Expense

275 
Gas Cost and Maintenance Equalization

276 
Accumulated Deferred Income Taxes

278 
Contributions and Grants

279 
Other Deferred Credits

Appropriations

290 
Insurance Appropriations

291 
Welfare and Pension Appropriations

293 
Other Appropriations

Text Pertaining to Balance Sheet Accounts

Assets

100 
Gas Plant in Service

(1) This account shall include a company’s investment in plant, property and equipment used in gas pipeline service other than that included in account 101 (Gas Plant Leased to Others), account 102 (Gas Plant Held for Future Use) and account 107 (Improvements to Facilities Leased from Others).

(2) The balance in this account shall be classified according to Schedule IV and shall be supported by subsidiary records in which the plant is subdivided into component parts corresponding to

(a) each group of plant accounts;
(b) each plant account; or
(c) each asset or group of assets within a plant account.

(3) The records referred to in subsection (2) shall show in detail the current debits and credits.
(4) Where the consideration given for plant is other than cash, the value of such consideration shall be determined on a cash basis and the entry recording such transaction shall describe the actual consideration with sufficient particularity to identify it.
(5) The company shall furnish the Board at its request with the particulars of the determination of the cash value of any consideration referred to in subsection (4).

101 
Gas Plant Leased to Others

(1) This account shall include the cost of gas plant owned but leased to others as operating units or systems, where the lessee has exclusive possession.
(2) The balance in this account shall be classified according to Schedule IV.

102 
Gas Plant Held for Future Use

(1) This account shall include the investment in plant, property and equipment in existence at the date of the balance sheet and held for future use under a definite plan for gas pipeline operations.
(2) The balance in this account shall be classified according to Schedule IV.

103 
Retirement Work in Progress

(1) When plant included in accounts 100, 101, 102 and 107 is retired, this account shall be debited with

(a) the book cost of the plant retired, and
(b) the costs of removal, demolition and dismantling of plant,

and the account shall be credited with amounts recovered from salvage, including insurance proceeds.

(2) When final costs of each retirement are established, the book cost and the costs of removal less amounts recovered shall be transferred to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable.

105 
Accumulated Depreciation — Gas Plant

(1) This account shall be credited with amounts of depreciation concurrently debited to account 303 (Depreciation) to cover the loss in service value of depreciable gas plant, the cost of which is included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use).
(2) Where applicable, this account shall be credited with the depreciation of amounts included in account 107 (Improvements to Facilities Leased from Others).

(3) When the final costs of retirement of depreciable gas plant are established, this account shall be debited with

(a) the book cost of the plant retired, and
(b) the costs of removal, demolition or dismantling of the plant retired,

and the account shall be credited with amounts recovered from salvage, including insurance proceeds.

(4) This account shall be debited or credited with amounts transferred to another account as a result of an extraordinary retirement. (See section 40 of these Regulations)

(5) For general ledger and balance sheet purposes, this account shall be regarded and treated as a composite reserve, but for the purposes of analysis, a company shall maintain subsidiary records in which accumulated depreciation is subdivided into component parts corresponding to

(a) each group of plant accounts,
(b) each plant account, or
(c) each group of assets within a plant account,

and the records shall show in detail the current debits and credits. (See sections 48 to 57 of these Regulations)

(6) This account shall be subdivided as follows:

(a) Accumulated Depreciation — Gas Plant in Service;
(b) Accumulated Depreciation — Gas Plant Leased to Others;
(c) Accumulated Depreciation — Gas Plant Held for Future Use; and
(d) Accumulated Depreciation — Improvements to Facilities Leased from Others.

106 
Accumulated Amortization — Gas Plant

(1) When a company is authorized by the Board to amortize amounts carried in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use), this account shall be credited with amounts concurrently debited to account 304 (Amortization). (See sections 59 and 60 of these Regulations)
(2) Where applicable, this account shall also be credited with the amortization of amounts included in account 107 (Improvements to Facilities Leased from Others).
(3) Where a change from depreciation accounting to amortization accounting is authorized by the Board with respect to any group of plant accounts, plant account, or group of assets within a plant account, the applicable balance in account 105 (Accumulated Depreciation — Gas Plant), shall be transferred to this account.

(4) When the final costs of retirement of amortizable gas plant are established, this account shall be debited with

(a) the book cost of the plant retired, and
(b) the costs of removal, demolition or dismantling of the plant retired,

and the account shall be credited with amounts recovered from salvage, including insurance proceeds.

(5) This account shall be debited or credited with amounts transferred to another account as a result of an extraordinary retirement. (See section 40 of these Regulations)
(6) Subsidiary records shall be maintained for each group of plant items under a separate amortization authorization.

(7) This account shall be subdivided as follows:

(a) Accumulated Amortization — Gas Plant in Service;
(b) Accumulated Amortization — Gas Plant Leased to Others;
(c) Accumulated Amortization — Gas Plant Held for Future Use; and
(d) Accumulated Amortization — Improvements to Facilities Leased from Others.

107 
Improvements to Facilities Leased from Others

(1) This account shall include the unamortized or undepreciated cost of improvements made to facilities leased from others, where the improvements are made for the purpose of gas pipeline operations.
(2) Any amounts refunded to the company by the lessor in connection with the improvements referred to in subsection (1) shall be credited to this account.
(3) The balance in this account shall be classified according to Schedule IV.
(4) Where the service life of the improvements is terminable by the action of the lease, the cost of the improvements, less net salvage, shall be spread over the life of the lease by debits to account 304 (Amortization) and concurrent credits to account 106 (Accumulated Amortization — Gas Plant).
(5) Where the service life of the improvements is not terminated by the action of the lease, the cost of the improvements, less net salvage, shall be accounted for as depreciable plant by debits to account 303 (Depreciation) and concurrent credits to account 105 (Accumulated Depreciation — Gas Plant).

110 
Other Plant

(1) This account shall include investment in plant that is entirely distinct from and is not operated in connection with the gas pipeline service of a company.
(2) Where other plant is retired from service, this account shall be credited with the cost of the plant retired.

(3) Representative List of Items of Other Plant to be included. (See section 14 of these Regulations)

Commercial power plants

Land and buildings not used in pipeline service

Land and property acquired and held in anticipation of an indefinite future use

Mineral and timber lands

111 
Accumulated Depreciation — Other Plant

(1) This account shall be credited with accounts of depreciation concurrently debited to account 311 (Expenses of Other Plant) to cover loss in service value of depreciable plant, the cost of which is included in account 110 (Other Plant).

(2) At the time of retirement of depreciable other plant, this account shall be debited with

(a) the cost of the plant retired, and
(b) the costs of removal, demolition or dismantling of the plant retired,

and the account shall be credited with amounts recovered from salvage, including insurance proceeds.

112 
Accumulated Amortization — Other Plant

(1) This account shall be credited with amounts of amortization concurrently debited to account 311 (Expenses of Other Plant), when a company is required to amortize amounts carried in account 110 (Other Plant).
(2) Where there is a change from depreciation accounting to amortization accounting, the applicable balance in account 111 (Accumulated Depreciation — Other Plant) shall be transferred to this account.

(3) At the time of retirement of amortizable other plant, this account shall be debited with

(a) the book cost of the plant retired, and
(b) the costs of removal, demolition or dismantling of the plant retired,

and the account shall be credited with amounts recovered from salvage, including insurance proceeds.

115 
Gas Plant Under Construction

(1) This account shall include the cost of construction of gas plant not yet placed in service, including

(a) the cost of land acquired for such projects;
(b) unapplied construction materials and supplies;
(c) taxes during construction; and
(d) other elements of construction cost.

(2) When the construction of any plant included in this account has been completed and the plant has been placed in service, the applicable cost shall be credited to this account and debited to account 100, 101, 102 or 107, as appropriate.

116 
Other Plant Under Construction

This account shall include the cost of construction of plant other than plant under construction that may be included in account 115 (Gas Plant Under Construction).

Investments

120 
Investments in Affiliated Companies

(1) This account shall include the cost of a company’s investment in securities issued or assumed by affiliated companies and investment advances made to affiliated companies. (See sections 63 and 66 to 68 of these Regulations)

(2) This account shall be maintained in a manner that will enable information on the investment in each affiliated company to be submitted under the following headings:

(a) shares;
(b) bonds and debentures;
(c) other secured obligations;
(d) unsecured notes;
(e) investment advances;
(f) interest accrued on any of the above when the interest is not subject to current settlement; and
(g) miscellaneous investments.

(3) Where any securities referred to in subsection (2) are pledged, a complete record thereof shall be maintained.

121 
Other Investments

(1) This account shall include

(a) the cost of a company’s investment in securities issued or assumed by non-affiliated companies, other than securities held in special deposits or special funds; and
(b) investment advances made to non-affiliated companies and individuals. (See sections 63, 66 and 67 of these Regulations)

(2) This account shall be maintained in a manner that will enable information on the investment in each non-affiliated company to be submitted under the following headings:

(a) shares;
(b) bonds and debentures;
(c) other secured obligations;
(d) unsecured notes;
(e) investment advances;
(f) interest accrued on any of the above when the interest is not subject to current settlement; and
(g) miscellaneous investments.

(3) Where any securities referred to in subsection (2) are pledged, a complete record thereof shall be maintained.

122 
Sinking Funds

(1) This account shall include cash and the cost of securities and other assets, held by trustees or by the company’s treasurer, that have been segregated in distinct funds and are for the purpose of providing resources for the redemption of debt or shares.
(2) A separate account shall be kept for the sinking funds applicable to each class of debt or share issue.
(3) An appropriate record shall be maintained for securities issued or assumed by the company and held in sinking funds. (See section 62 of these Regulations)

123 
Miscellaneous Special Funds

(1) This account shall include cash and the cost of securities and other assets, held by trustees, managers or by the company’s treasurer, that have been segregated in funds for insurance, employees’ pensions, savings, relief, hospital and other purposes not provided for elsewhere.
(2) A separate account shall be kept for each fund.
(3) This account shall not include funds that the company holds solely as trustee and in which it has no beneficial interest. (See section 62 of these Regulations)

126 
Allowance for Loss in Value of Investments

(1) This account shall include all credit balances maintained by a company where those credit balances represent reductions in the book value of investments carried in account 120 (Investments in Affiliated Companies) and account 121 (Other Investments). (See account 326 (Provision for Loss in Valuation of Investments))
(2) Debits to this account that represent reductions in the allowance for loss in value of investments carried in account 120 or 121 shall be made only with the prior approval of the Board.

Current

130 
Cash

This account shall include

(a) commercial bank accounts available for general chequing purposes, as distinguished from bank accounts provided for special purposes, such as special deposits;
(b) petty cash funds; and
(c) funds received by a company, recorded as cash receipts and undeposited at the close of the accounting period.

131 
Special Deposits

This account shall include

(a) the unexpended balances of funds deposited specifically for the payment of dividends, interest and other current liabilities; and
(b) other deposits subject to current withdrawal for specific purposes only, including amounts deposited with airlines, utilities and unemployment insurance commissions, etc.

132 
Temporary Cash Investments

This account shall include the cost of securities acquired for the purpose of temporarily investing cash, such as government treasury bills, deposit receipts, short-term notes and other investments of a short-term nature. (See sections 63 to 65 of these Regulations)

140 
Accounts Receivable — Trade

This account shall include amounts receivable for the transportation, storage and delivery of gas, exclusive of amounts receivable from affiliated companies.

141 
Accounts Receivable — Other

This account shall include the following items when the amounts involved are considered collectible:

(a) advances to officers, employees and agents as working funds;
(b) amounts due from corporations, firms and individuals;
(c) the book value of notes receivable or other similar evidence of money receivable, due within one year from the date of issue; and
(d) other similar items.

(See section 75 of these Regulations)

142 
Accounts Receivable — Affiliated Companies

(1) This account shall include all amounts due from affiliated companies, such as trade accounts, dividends and interest, where such amounts are subject to settlement within one year from the date of the balance sheet. (See subsection 80(1) of these Regulations)

(2) This account shall be maintained in a manner that will enable information on receivables from each affiliated company to be submitted under the following headings:

(a) secured obligations;
(b) unsecured notes;
(c) advances;
(d) debit balances in open accounts;
(e) interest accrued on any of the above where such interest is subject to current settlement; and
(f) miscellaneous receivables.

145 
Allowance for Doubtful Accounts

(1) This account shall include the total of the balances maintained by a company for the purpose of providing for reductions in the value of current assets recorded in

(a) account 140 (Accounts Receivable — Trade),
(b) account 141 (Accounts Receivable — Other),
(c) account 142 (Accounts Receivable — Affiliated Companies), and
(d) account 162 (Other Current Assets),

and corresponding debits shall be made to account 728 (Other General Expense).

(2) Collections on accounts that were previously debited to this account shall be credited to this account.

147 
Interest and Dividends Receivable

(1) This account shall include

(a) the amount of interest accrued to the date of the balance sheet on bonds owned,
(b) the amount of interest accrued to the date of the balance sheet on loans made, and
(c) the amounts of dividends declared on shares owned,

except where the interest or dividend receivable is from an affiliated company.

(2) No dividends or other returns on securities issued or assumed by the accounting company shall be included in this account.

150 
Plant Materials and Operating Supplies

(1) This account shall include the cost of materials purchased primarily for use in construction, operations or maintenance, such as shop material, articles in process of fabrication by the accounting company, spare parts, fittings, valves, appliances, line pipe and other supplies but shall not include materials properly includable in account 115 (Gas Plant Under Construction) or account 102 (Gas Plant Held for Future Use).
(2) Materials and supplies purchased shall be debited to this account at the actual costs of the materials and supplies at point of free delivery plus transportation costs, ad valorem taxes and any other relevant costs, and in determining the cost of materials and supplies, suitable allowance shall be made for all discounts allowed in the purchase thereof.
(3) Materials and supplies issued shall be credited to this account and concurrently debited to the appropriate construction, operating or maintenance expense account on the basis of a unit price, determined by the use of cumulative average, first in-first out, or such other method of inventory accounting as conforms with accepted accounting practices consistently applied.
(4) Material recovered in connection with construction, maintenance work or the replacement or demolition of plant and classified as reusable shall be debited to this account at its original cost, estimated if not known, and credited to the appropriate maintenance, construction or accumulated depreciation account.
(5) Material recovered in connection with construction, maintenance work or the replacement or demolition of plant and classified as scrap shall be debited to this account on the basis of its fair and reasonable value and credited to the appropriate maintenance, construction or accumulated depreciation account.
(6) When salvaged material is sold at a higher or lower price than that at which it is included in this account, an appropriate adjustment shall be made in the accounts that were credited when the material was recovered and debited to this account.

151 
Other Material and Supplies

This account shall include the value of all unapplied material for current non-gas pipeline operations and maintenance, such as spare parts, shop material and supplies held primarily for other plant, merchandising, jobbing and contract work.

152 
Gas Stored Underground — Available for Sale

(1) This account shall include

(a) the cost of gas purchased or produced and stored in depleted or partially depleted gas or oil fields or other underground reservoirs and held for use in meeting gas service requirements of customers; and
(b) the value of that portion of the stored gas in excess of the amount that may properly be included in account 458 (Base Pressure Gas).

(2) Gas included in this account shall be valued at average cost on a consistent basis, but gathering and transmission expenses incurred through the use of company facilities in moving gas to the storage area and expenses of storage facilities shall not be included in the cost except as may be authorized by the Board.
(3) Deliveries to or withdrawals from underground storage of gas held for use to satisfy gas requirements of customers shall be debited or credited to this account, as appropriate.

153 
Transmission Line Pack Gas

This account shall include the cost of gas owned by the company in its own pipelines or in non-owned pipelines and used to maintain the line pressure required for the transmission of gas, but the gathering and transmission expenses incurred through the use of company facilities in moving gas to the transmission area shall not be included except as authorized by the Board.

160 
Prepayments

(1) This account shall include amounts representing prepaid gas, expenses and other similar items that are to be debited to appropriate accounts by systematic write-off.
(2) This account shall be maintained in a manner that will disclose the amount of each class of prepayment and write-off.

162 
Other Current Assets

This account shall include current assets not provided for elsewhere.

Deferred Debits

170 
Unamortized Debt Discount and Expense

(1) This account shall include the total of the debit balance in the subaccounts maintained for each series of each class of long-term debt in accordance with section 69.
(2) The amounts recorded in this account shall be amortized in accordance with section 72 or 73, as applicable.

171 
Extraordinary Plant Losses

(1) This account shall include material losses authorized by the Board to be transferred from accumulated depreciation or accumulated amortization accounts to this account, in accordance with subsection 40(3).
(2) Before an amount is transferred to this account, a company shall provide the Board with full details of the calculation thereof together with the future accounting treatment proposed by the company.
(3) Amounts recorded in this account shall be amortized by systematic debits to account 304 (Amortization), or otherwise disposed of as the Board may approve or direct.

172 
Preliminary Survey and Investigation Charges

(1) This account shall be debited with all expenditures for preliminary surveys, plans, investigations and similar items made for the purpose of determining the feasibility of projects for gas pipeline service, and with the costs associated with applications for certificates of public convenience and necessity, board hearings, the acquisition of options to purchase land, land rights, easements and similar items for use in contemplated projects.
(2) Where, as a result of the expenditures referred to in subsection (1), a plant is acquired or constructed, this account shall be credited and the appropriate accounts debited with the costs related to that plant.
(3) Where a project referred to in subsection (1) is not proceeded with, the costs included in this account shall be transferred to account 329 (Other Income Deductions), unless the amount is material, in which case the company shall inform the Board and, unless otherwise directed by the Board, shall debit the amount to account 341 (Extraordinary Income Deductions).
(4) Records supporting entries to this account shall be maintained in a manner that will enable complete information to be available as to the nature and purpose of the expenditures.

173 
Other Work in Progress

This account shall include all costs that are incurred for other work in progress and that may not be included in account 115 (Gas Plant Under Construction) or account 116 (Other Plant Under Construction).

176 
Public Improvements

(1) This account shall include

(a) the deferred portion of assessments by governmental authorities (by mutual agreement or otherwise) to cover the cost of constructing public improvements, when a company has elected to make payment by lump sum and not by instalments over a number of years; and
(b) the cost borne by a company of public improvements constructed by it under governmental requirements.

(2) Amounts that are no longer deferred shall be debited to account 305 (Municipal and Other Taxes) and credited to this account.

(3) Representative List of Items of Public Improvements to be included. (See section 14 of these Regulations)

Cost of land outside a company’s right of way to provide for the relocation of street or highway

Curbing streets and highways

Damage to property of others when incidental to highway construction

Drainage system

Engineering expenses when such costs apply to items chargeable to this account

Flood protection

Grading streets and highways

Guttering streets and highways

Irrigation systems

Levee

Paving streets and highways

Sewer system

Sidewalk

Street lighting system

Water works

177 
Share Capital Expense

(1) This account shall, with respect to the original and subsequent issues of share capital or with respect to any shares split, include expenses of the following type:

(a) the cost of preparing and distributing prospectuses;
(b) the cost of soliciting subscriptions for shares;
(c) fees and commissions paid to agents, lawyers and accountants;
(d) the cost of preparing and issuing certificates of shares;
(e) expenses incurred in securing legislative and regulatory approval for increases or decreases in authorized capital; and
(f) other similar items.

(See sections 68 to 70 of these Regulations)

(2) The expenses of the type indicated in paragraph (1)(d) with respect to the subsequent issues of share certificates shall be debited to account 728 (Other General Expense).
(3) Amounts recorded in this account shall be amortized, or otherwise disposed of, as the Board may approve or direct.

178 
Organization Expense

(1) This account shall include expenditures incidental to organizing a company, such as

(a) all fees paid to governments for the privilege of incorporation;
(b) legal fees; and
(c) other similar items.

(2) Amounts recorded in this account shall be amortized, or otherwise disposed of, as the Board may approve or direct.

179 
Other Deferred Debits

This account shall include

(a) expenditures that cannot be disposed of until further information is received;
(b) undistributed balances in clearing accounts;
(c) variances in estimated and actual foreign exchange expenditures arising from foreign currency service of debt securities issued by the company and variances between estimated and actual rates of foreign exchange realized from repurchases of debt securities issued by the company where such a deferral of foreign exchange variances has been directed by the Board to facilitate consideration of disposition at a later date; and
(d) expenditures of a deferred nature, not provided for elsewhere, that are to be amortized over future periods.

Liabilities

Shareholders Equity

200 
Share Capital

(1) This account shall include

(a) the total par value of any class of shares, if applicable, and
(b) the total amount received from the issuance of each class of shares without par value, excluding amounts that have been properly allocated to account 210 (Contributed Surplus),

where the shares have been issued to bona fide purchasers and has not been reacquired and cancelled.

(2) This account shall also include appropriations of retained earnings that have been transferred to share capital.
(3) When share capital is reduced or cancelled, this account shall be debited with the appropriate amount applicable to the particular series or class of shares involved.
(4) This account shall be subdivided in a manner that will show the total amount credited to this account with respect to each series or class of shares issued and outstanding and carrying different conditions.
(5) An appropriate record shall be maintained showing the total number of shares issued and outstanding for each series or class referred to in subsection (4).

210 
Contributed Surplus

(1) This account shall include

(a) surplus arising from transactions relating to the company’s share capital; and
(b) capital contributions and donations from government and other sources.

(2) Representative List of Items of Contributed Surplus to be included. (See section 14 of these Regulations.)

(a) Premium received on the issuance of par value shares prior to December 15, 1975 (Canada Business Corporations Act, S.C. 1974-75-76, c. 33) or a prior date where a Company elected to be subject to the Act
(b) Proceeds of sale of donated shares
(c) Credits resulting from the redemption or conversion of shares at less than the amount recorded as share capital
(d) Other contributions made by shareholders in excess of par or stated value of shares
(e) The portion of proceeds from the issuance of no par value shares that has been properly allocated to this account
(f) Capital contributions in the form of subsidies, building sites, etc.

212 
Retained Earnings

This account shall include the balance, debit or credit, of the amounts included in the Retained Earnings accounts listed in Schedule III to these Regulations.

216 
Excess of Appraised Value of Plant Over Depreciated Cost

(1) This account shall be credited with the increase in value of fixed assets as a result of an appraisal, where the appraisal is associated with

(a) an actual purchase and sale of fixed assets, as in the acquisition of an affiliated company;
(b) a reorganization of the accounting company; or
(c) a substantial issue of securities, whether equity shares or otherwise.

(2) The use of this account and the disposition of any amounts included herein shall be subject to the prior approval of the Board.

Long-term Liabilities

220 
Long-term Debt

(1) This account shall include

(a) the total par value of unmatured debt maturing more than one year from the date of the balance sheet, where such debt is issued and not retired or cancelled; and
(b) the total par value of similar unmatured debt of other companies, the payment of which debt has been assumed by the company.

(2) The amounts in this account shall be divided to show the par value of

(a) certificates or other evidences of long-term debt, pledged and unpledged, held in the company’s treasury by its agents or trustees or otherwise subject to its control; and
(b) certificates or other evidences of long-term debt issued and outstanding, and not held by the company, its agents or trustees, or subject to its control.

(3) The amounts included in this account shall be further divided to show the amount of each of the following classes of long-term debt:

(a) mortgage bonds — bonds secured by lien on physical property and not included in any other subdivisions of this account;
(b) collateral trust bonds — bonds and notes secured by a lien on securities or other negotiable paper, and stock trust certificates that are similar in character to collateral trust bonds;
(c) income bonds — bonds that are a lien on a company’s revenue alone, or bonds that, while being a lien on the company’s property and franchises, provide for payments of interest only if the interest is earned;
(d) convertible bonds — bonds that may be converted into capital stock of the company, according to the agreement under which they are issued; and
(e) miscellaneous obligations — all other long-term debt obligations maturing more than one year from the date of the balance sheet.

(4) Each of the classes listed in subsection (3) shall be divided into subclasses according to

(a) differences in security given therefor;
(b) rates of interest;
(c) interest dates; and
(d) dates of maturity.

(5) Long term debt securities are considered to be issued when they have been sold to a bona fide purchaser for valuable consideration and when the purchaser holds them free from all control by the accounting company.
(6) All long-term debt securities that are issued and not reacquired and are held by or for the company are considered to be outstanding.
(7) Long-term debt that is to be repaid in a foreign currency shall be included in this account in accordance with generally accepted accounting practice.

221 
Company Long-term Debt Owned

(1) This account shall include the par value of long-term debt actually issued or assumed by a company and reacquired by it and not retired or cancelled, but shall not include long-term debt held in sinking funds or miscellaneous special funds. (See section 74 of these Regulations)
(2) Where the long-term debt referred to in subsection (1) is to be repaid in a foreign currency, for purposes of that subsection par value means the par value in the foreign currency converted to the Canadian dollar equivalent.

(3) This account shall show

(a) total par value unpledged; and
(b) total par value pledged.

248 
Advances from Affiliated Companies

(1) This account shall include all amounts owed to affiliated companies and not subject to settlement within one year and, without limiting the generality of the foregoing, shall include

(a) the par value of bonds, debentures and long-term notes payable and issued to affiliated companies;
(b) the par value of non-negotiable notes issued to affiliated companies;
(c) the par value of matured long-term bonds, debentures or notes payable where such bonds, debentures or notes of the company are held by affiliated companies, where there is no agreement for an extension as to time of payment but the collection of the principal is not enforced;
(d) credit balances in open accounts with affiliated companies, other than credit balances in current accounts; and
(e) interest accrued on any of the items referred to in paragraphs (a) to (d) when the interest is not subject to current settlement.

(2) Separate subaccounts shall be kept for each of the items listed in subsection (1). (See section 80 of these Regulations)

249 
Other Long-term Debt

This account shall include amounts payable more than one year from the date of the balance sheet where such amounts have not been provided for elsewhere and loans payable authorized by subsection 76(2) to be included in this account.

Current Liabilities

250 
Loans and Notes Payable

(1) This account shall include the balances representing a company’s outstanding obligations in the form of loans and notes payable or other similar evidences of indebtedness payable on demand or within a time not exceeding one year from the date of the balance sheet.
(2) This account shall be maintained in such form as to show separately the amounts of indebtedness secured by collateral.

251 
Accounts Payable and Accrued

(1) This account shall include

(a) the amount of vouchers and payrolls or accounts unpaid on the date of the balance sheet;
(b) outstanding drafts drawn by agents;
(c) unpaid rents under leases or agreements;
(d) taxes collected from employees and others for the account of taxing agencies; and
(e) other items of the nature of demand liabilities not included in account 250 (Loans and Notes Payable), account 252 (Accounts Payable — Affiliated Companies), account 257 (Interest Payable and Accrued) and account 259 (Other Current Liabilities).

(2) This account shall also include a company’s estimated accrued liabilities with respect to accounts payable. (See sections 77 and 78 of these Regulations)
(3) A company’s estimates of liabilities for injuries to persons and for loss and damage claims shall not be included in this account but shall be credited to account 259 (Other Current Liabilities) or account 279 (Other Deferred Credits), as applicable.

252 
Accounts Payable — Affiliated Companies

This account shall include all amounts owed to affiliated companies and subject to settlement within one year from the date of the balance sheet and, without limiting the generality of the foregoing, shall include

(a) notes;
(b) advances;
(c) credit balances and open accounts;
(d) long-term debt due within one year;
(e) joint revenue payable;
(f) interest on any of the above;
(g) dividends; and
(h) miscellaneous amounts.

253 
Dividends Payable

This account shall include dividends declared on capital stock and not yet paid by a company other than dividends payable to affiliated companies and recorded in account 252.

254 
Customers’ Security Deposits

This account shall include all amounts deposited with a company by customers as security for payment of debts.

256 
Taxes Accrued

(1) This account shall be credited with the accruals of all taxes that are currently payable to federal, provincial or other governmental authorities.
(2) The accruals referred to in subsection (1) may be based upon estimates, provided that the estimates shall be adjusted to reflect in this account at all times the estimates of the company as to its unpaid liability for each of the several classes of taxes that has not been finally settled.
(3) All tax payments for which accruals have been made shall be debited to this account.
(4) The records supporting the entries in this account shall be kept to show separately, by classes of taxes, the amount of the tax accruals for the current year and the adjustments of accruals for prior years.

257 
Interest Payable and Accrued

This account shall be credited with interest due or accrued on

(a) notes payable,
(b) bank overdrafts and loans, and
(c) long-term debt and other obligations,

other than such interest payable to affiliated companies.

258 
Long-term Debt Due Within One Year

This account shall include

(a) the amount of long-term debt and any premiums thereon that will become payable within one year from the date of the balance sheet,
(b) the amount of matured and unpaid long-term debt and any premiums thereon for which there has been no specific agreement for extension of the time of payment, and
(c) the amount of long-term debt called for redemption but not presented to the company or its agents for payment,

other than long-term debt payable to affiliated companies.

259 
Other Current Liabilities

This account shall include all contractor’s hold backs and all other current liabilities not provided for elsewhere, including the company’s estimate of current liabilities in respect of injuries to persons and loss and damage claims.

Deferred Credits and Appropriations

270 
Unamortized Debt Premium and Expense

(1) This account shall include the unamortized premiums received from the issuance of long-term debt and shall include the total of the credit balances in the subaccounts maintained for each series of each class of long-term debt in accordance with section 71.
(2) The amounts recorded in this account shall be amortized in accordance with section 72 or 73, as applicable.

275 
Gas Cost and Maintenance Equalization

This account shall include

(a) the undistributed debit or credit resulting from a company following a method of equalizing its gas cost through the year because of seasonal variations in unit gas prices; and
(b) the ledger balances representing reserves created by debits to operations for maintenance expenses in accordance with section 47.

276 
Accumulated Deferred Income Taxes

Where a company does not follow the taxes payable basis of accounting for income taxes, this account shall include the amounts by which a company’s provision for income taxes for a particular year differs from the amount of income taxes payable for that year.

278 
Contributions and Grants

(1) This account shall include non-refundable contributions or grants in cash, services or property from governments or government agencies, corporations, individuals and others for contributions in aid of construction.
(2) Amounts included in this account shall not be transferred to any other account without the prior approval of the Board.
(3) This account shall be maintained in a manner that will furnish complete information respecting the purpose of each contribution or grant.

279 
Other Deferred Credits

This account shall include

(a) credit items that cannot be disposed of until further information is received;
(b) undistributed balances in clearing accounts;
(c) variances in estimated and actual foreign exchange expenditures arising from foreign currency service of debt securities issued by a company and variances between estimated and actual rates of foreign exchange realized from repurchases of debt securities issued by the company where such a deferral of foreign exchange variances has been directed by the Board to facilitate consideration of disposition at a later date;
(d) material gain on extraordinary retirement that is authorized by the Board to be transferred from accumulated depreciation or accumulated amortization accounts to this account, in accordance with subsection 40(3) which gain shall be amortized as directed by the Board; and
(e) credit items of a deferred nature, not provided for elsewhere, that are to be amortized over future periods.

Appropriations

290 
Insurance Appropriations

(1) This account shall include the credit balances representing insurance appropriations concurrently debited to expenses to cover self-carried risks on fire, fidelity, vehicle, boiler, casualty, burglary, other insurance, and re-insurance recoveries from insurance companies. (See sections 61 and 62 of these Regulations)
(2) To the extent that a loss or damage sustained is covered by this account, the amount of the loss or damage shall be debited to this account.
(3) Separate subaccounts shall be kept for each kind of insurance reserve created.

291 
Welfare and Pension Appropriations

(1) This account shall include

(a) the credit balances representing the liability of the company for amounts contributed by employees and by the company through debits to expenses or such other accounts as are approved by the Board for

(i) pensions,
(ii) accident and death benefits,
(iii) savings,
(iv) relief, and
(v) hospital or other provident purposes,

whether or not a special fund has been established to meet such liabilities (See section 62 and account 123 (Miscellaneous Special Funds) of these Regulations); and
(b) the credit balances representing the liability of the company for amounts provided by debits to expenses in respect of deferred compensation under an employees’ profit-sharing plan.

(2) Separate subaccounts shall be kept for each kind of appropriation created pursuant to subsection (1).
(3) Disbursements shall be debited to this account and any excess of such disbursements over the amounts appropriated shall be transferred to account 724 (Injuries and Damages), or to account 725 (Employee Benefits), as applicable.
(4) Current amounts payable relative to funded welfare, pension and other plans with insurance companies or trustees shall be transferred to account 251 (Accounts Payable and Accrued).

293 
Other Appropriations

This account shall be credited with all appropriations or allowances that may not be included in account 145 (Allowance for Doubtful Accounts), account 290 (Insurance Appropriations), account 291 (Welfare and Pension Appropriations) or account 126 (Allowance for Loss in Value of Investments), including estimated liabilities for injuries to persons and loss and damage claims not includible in account 259 (Other Current Liabilities).

SOR/86-998, ss. 27, 28(E).

SCHEDULE II(ss. 6, 8 and 14)

Index of Accounts

Income Accounts

300 
Operating Revenue

301 
Operating Expense

302 
Maintenance Expense

303 
Depreciation

304 
Amortization

305 
Municipal and Other Taxes

306 
Incomes Taxes

307 
Revenue from Gas Plant Leased to Others

308 
Rent for Gas Plant Leased from Others

310 
Revenue from Other Plant

311 
Expenses of Other Plant

312 
Non-Operating Revenue

313 
Non-Operating Expense

314 
Income from Investments

315 
Income from Affiliated Companies

316 
Income from Sinking and Other Funds

317 
Gain on Foreign Exchange

319 
Other Income

320 
Interest on Long-Term Debt

321 
Amortization of Debt Discount, Premium and Expense

322 
Interest on Amounts Due Affiliated Companies

323 
Other Interest

324 
Allowance For Funds Used During Construction (Credit)

325 
Loss on Foreign Exchange

326 
Provision for Loss in Valuation of Investments

329 
Other Income Deductions

Extraordinary Items

331 
Extraordinary Income

341 
Extraordinary Income Deductions

Text Pertaining to Income Accounts

General

The balance of all income accounts shall be closed into retained earnings account 350 (Balance Transferred from Income) at the end of each fiscal year.

300 
Operating Revenue

This account shall include the total revenues derived from operations recorded in the accounts set out in Schedule V to these Regulations.

301 
Operating Expense

This account shall include the total expenses of operations recorded in the accounts set out in Schedule VI to these Regulations.

302 
Maintenance Expense

This account shall include the total maintenance expenses recorded in the accounts set out in Schedule VII to these Regulations.

303 
Depreciation

(1) This account shall include debits for the depreciation of plant included in

(a) account 100 (Gas Plant in Service);
(b) account 101 (Gas Plant Leased to Others); and
(c) account 102 (Gas Plant Held for Future Use).

(2) Subsidiary records shall be maintained to show separately the depreciation expense for each plant account or group of plant accounts that perform similar functions. (See sections 49 to 59 of these Regulations inclusive and the text of account 105)
(3) This account shall also include debits for the depreciation of Improvements to Facilities Leased from Others, where it is inappropriate to amortize the amounts of such improvements over the life of the lease by debit to account 304 (Amortization). (See text of account 107)

304 
Amortization

(1) This account shall include debits for the amortization of plant included in

(a) account 100 (Gas Plant in Service),
(b) account 101 (Gas Plant Leased to Others), and
(c) account 102 (Gas Plant Held for Future Use)

when a change from depreciation accounting to amortization accounting has been approved by the Board. (See section 59 of these Regulations)

(2) This account shall also include debits for the amortization of amounts recorded in account 171 (Extraordinary Plant Losses), when approval or direction of the Board has been received. (See text of account 171)
(3) This account shall also include debits for the amortization of Improvements to Facilities Leased from Others. (See text of account 107)
(4) Subsidiary records shall be maintained to show separately the amortization expense for each plant account or group of plant accounts that perform similar functions.
(5) This account shall also include credits for the amortization of amounts recorded in account 278 (Contributions and Grants), when approval or direction of the Board has been received. (See text of account 278)

305 
Municipal and Other Taxes

(1) This account shall include

(a) taxes levied by governments and municipalities relating to plant, operations and privileges, whether based upon valuation of the plant, quantity of gas transmitted, length of pipeline operated or owned, or other bases;
(b) instalment payments covering assessments by governmental authorities for public improvements, and the write-off of lump sum payments originally debited to account 176 (Public Improvements); and
(c) other taxes not provided for elsewhere.

(2) Taxes on new lines under construction or on plant acquired for the extension of existing lines or on additions or replacements before the facilities are opened for commercial operations or on plant acquired before it becomes available for service shall be debited to the appropriate gas plant accounts.

306 
Income Taxes

This account shall include provision for federal, provincial or other government income taxes levied on the basis of a company’s operations for the fiscal period, except income taxes chargeable to account 353 (Income Tax Applicable to Retained Earnings Adjustments).

(2) This account shall be subdivided as follows:

(a) current income taxes applicable to income before extraordinary items;
(b) current income taxes and reductions of current income taxes applicable to extraordinary items; and
(c) deferred income taxes.

307 
Revenue from Gas Plant Leased to Others

This account shall include revenues from gas plant that is included in account 101 (Gas Plant Leased to Others) and that constitutes a distinct operating unit or system leased by the company to others.

308 
Rent for Gas Plant Leased from Others

This account shall include rent for gas plant that is leased by the company from others and that constitutes a distinct operating unit or system.

310 
Revenue from Other Plant

(1) This account shall include the total revenues from the operation of plant that is included in account 110 (Other Plant).

(2) Representative List of Items of Revenues from Other Plant to be included. (See section 14 of these Regulations)

Revenue from commercial power plants

Revenue from lands and buildings not used in gas operations

Revenue from lands and plant acquired and held in anticipation of an indefinite future use

Revenue from mineral and timber lands

311 
Expense of Other Plant

(1) This account shall include

(a) all expenses, including depreciation but excluding income taxes, arising from the operation of other plant the cost of which is included in account 110 (Other Plant); and
(b) all expenses, other than depreciation, of gas plant leased to others as operating units or systems while the lessee has exclusive possession.

(2) Representative List of Items of Expense of Other Plant to be included. (See section 14 of these Regulations)

Expense of commercial power plants

Expense of lands and buildings not used in gas operations

Expense of lands and plant acquired in anticipation of an indefinite future use

Expense of mineral and timber lands

312 
Non-Operating Revenue

This account shall include revenues that are from commercial activities carried on within the corporate structure of the company and that may not be included in account 300 (Operating Revenue).

313 
Non-Operating Expense

This account shall include expenses from commercial activities carried on within the corporate structure of the company that may not be included in account 301 (Operating Expense) or account 302 (Maintenance Expense).

314 
Income from Investments

(1) This account shall include

(a) interest and dividends from investments recorded in account 121 (Other Investments) and account 132 (Temporary Cash Investments);
(b) interest on bank balances, open accounts, special deposits and other analogous items, where the interest is the property of the company; and
(c) where the amounts involved are not material, gains and losses on sale, or amounts required to provide allowances for the decrease in market value of temporary cash investments. (See sections 64 and 65 of these Regulations)

(2) At the option of the company, there may be included in this account the applicable portion of discount or premium on any investments recorded in accounts 121 and 132. (See section 63 of these Regulations)

315 
Income from Affiliated Companies

(1) This account shall include income from the investment of a company in shares, securities and other types of indebtedness that are issued or assumed by affiliated companies and in respect of which the income is the property of the accounting company, whether such shares, securities and other types of indebtedness are owned by the accounting company and held in its treasury or deposited in trust, or are otherwise controlled. (See section 80 of these Regulations)

(2) The amounts included in this account shall be divided to show separately the types of income as follows:

(a) dividends;
(b) interest; and
(c) other income.

(3) Income from affiliated companies shall not be credited to this account until such time as it is recorded on the books of the affiliated company.
(4) At the option of the company, there may be included in this account the applicable portion of discount or premium on any investments recorded in account 120. (See section 63 of these Regulations)

316 
Income from Sinking and Other Funds

(1) This account shall include

(a) the income accrued on cash, securities and other assets, not including debt securities issued or assumed by the company, recorded in account 122 (Sinking Funds) and account 123 (Miscellaneous Special Funds) (See section 62 of these Regulations); and
(b) immaterial gains realized and losses sustained in the sales of securities recorded in account 122 (Sinking Funds) and account 123 (Miscellaneous Special Funds). (See section 62 of these Regulations)

(2) At the option of the company, there may be included in this account the applicable portion of the discount or premium on any securities recorded in accounts 122 and 123. (See section 63 of these Regulations)

317 
Gain on Foreign Exchange

This account shall include gains on foreign exchange during the fiscal period, including realized gains as well as gains owing to the conversion to the Canadian dollar equivalent, on assets and liabilities held in foreign currencies.

319 
Other Income

This account shall include

(a) gains realized from the sale of materials and supplies not purchased for resale;
(b) immaterial gains realized from reacquisition at less than net book value of the debt securities issued by the company;
(c) immaterial gains arising from the sale of land, other plant or investments carried in account 120 (Investments in Affiliated Companies) and account 121 (Other Investments); and
(d) all other income items not provided for elsewhere.

320 
Interest on Long-Term Debt

(1) This account shall include current accruals of interest on all classes of long-term debt included in account 220 (Long-Term Debt), account 249 (Other Long-Term Debt) and account 258 (Long-Term Debt Due Within One Year), less current accruals on the debt included in account 221 (Company Long-Term Debt Owned).
(2) This account shall be maintained to show separately the interest on each class of long-term debt.

321 
Amortization of Debt Discount, Premium and Expense

(1) This account shall be debited or credited, as applicable, during each fiscal period, with the proportion of the discount, premium and expense on long-term debt obligations as may be applicable to the period.
(2) The proportion referred to in subsection (1) shall be determined in accordance with section 71, 72 or 73 as applicable.

322 
Interest on Amounts Due Affiliated Companies

This account shall include current accruals of interest of all classes of debt included in account 248 (Advances from Affiliated Companies) or account 252 (Accounts Payable — Affiliated Companies).

323 
Other Interest

This account shall include

(a) all interest except that chargeable to account 320 (Interest on Long Term Debt) or account 322 (Interest on Amounts Due Affiliated Companies); and
(b) all discounts, premiums and expenses on short term notes issued by the company and maturing in one year or less from the date of the balance sheet.

324 

Allowance for Funds Used During Construction (Credit)

This account shall be credited with amounts concurrently debited to account 497 (Allowance for Funds Used During Construction). (See section 27 of these Regulations and account 497)

325 
Loss on Foreign Exchange

This account shall include losses on foreign exchange during the fiscal period, including realized losses as well as losses owing to the conversion to the Canadian dollar equivalent, on assets and liabilities held in foreign currencies.

326 
Provision for Loss in Valuation of Investments

(1) This account shall be debited with amounts concurrently credited to account 126 (Allowance for Loss in Valuation of Investments), in respect of immaterial reductions in the value of investments carried in account 120 (Investments in Affiliated Companies) or account 121 (Other Investments). (See text of account 126 and section 67 of these Regulations)
(2) This account shall also include a company’s share of the losses or subsequent adjustments thereof described in section 68, unless such losses or adjustments are material.

329 
Other Income Deductions

This account shall include

(a) immaterial losses through reacquisitions at greater than net book value of debt securities issued by the company;
(b) immaterial losses arising from the sale of land, other plant or investments carried in account 120 (Investments in Affiliated Companies), and account 121 (Other Investments); and
(c) all other income deductions not provided for elsewhere.

Extraordinary Items

331 
Extraordinary Income

(1) Unless otherwise directed by the Board in particular cases, a company shall include in this account all material gains constituting “Extraordinary Items”. (See subsections 8(2) and (4) of these Regulations.)

(2) Representative List of Items of Extraordinary Income to be included. (See section 14 of these Regulations)

Gain on extraordinary retirement of depreciable plant (See section 40)

Gain on sale or retirement of depreciable Other Plant (See section 43)

Gain on sale or retirement of land (See section 44)

Gain on sale of assets included in Sinking Funds or Miscellaneous Special Funds (See section 62)

Gain on sale of Temporary Cash Investments (See section 64)

Gain on sale of Investments in Affiliated Companies or Other Investments (See section 66)

Adjustment to account 126 as described in subsection 68(2) of these Regulations

Gain on redemption of long-term debt (See section 73)

Gain on reacquisition of long-term debt (See section 74)

341 
Extraordinary Income Deductions

(1) A company shall include in this account all material losses constituting “Extraordinary Items”. (See subsections 8(2) and (4) of these Regulations)

(2) Representative list of Items of extraordinary deductions to be included in the account. (See section 14 of these Regulations)

Loss on an extraordinary retirement of depreciable plant (See section 40)

Loss on sale or retirement of depreciable Other Plant (See section 43)

Loss on sale or retirement of land (See section 44)

Loss on sale of assets included in Sinking Funds or Miscellaneous Special Funds (See section 62)

Loss on sale of Temporary Cash Investments (See section 64)

Reduction in the value of Temporary Cash Investments (See section 65)

Loss on sale of Investments in Affiliated Companies or Other Investments (See section 66)

Reduction in the value of Investments in Affiliated Companies or Other Investments (See section 67)

Loss on redemption of long-term debt (See section 73)

Loss on reacquisition of long-term debt (See section 74)

Preliminary Survey and Investigation Charges for projects not proceeded with (See text of account 172)

SOR/86-998, s. 29.

SCHEDULE III(ss. 6, 9, 14 and item 212 of Sch. I)

Index of Accounts

Retained Earnings Accounts

350 
Balance Transferred from Income

351 
Prior Period Adjustments

352 
Miscellaneous Retained Earnings Adjustments

353 
Income Tax Applicable to Retained Earnings Adjustments

357 
Dividend Appropriations

Text Pertaining to Retained Earnings Accounts

General

The balance in all retained earnings accounts shall be closed to balance sheet account 212 (Retained Earnings) at the end of such calendar year or other fiscal year as is approved by the Board for the closing of the company’s accounts.

350 
Balance Transferred from Income

This account shall show the debit or credit balances brought forward from the income accounts for the fiscal year.

351 
Prior Period Adjustments

(1) Unless otherwise directed by the Board, a company shall include in this account all material adjustments to the income of prior fiscal years when such adjustments have all four of the characteristics set out in subsection 78(1).

(2) Representative List of Items of Prior Period Adjustments to be included. (See section 14 of these Regulations)

Adjustments or settlements of income taxes

Adjustments or settlements of claims resulting from litigation

352 
Miscellaneous Retained Earnings Adjustments

(1) This account shall include adjustments to retained earnings not provided for elsewhere.
(2) A company shall not use this account without obtaining the prior approval of the Board.

353 
Income Tax Applicable to Retained Earnings Adjustments

This account shall include the estimated federal, provincial or other government income taxes (debit or credit) assignable to the aggregate of items, of both taxable income and deductions from taxable income, that, for accounting purposes, are recorded in retaining earnings accounts.

357 
Dividend Appropriations

(1) This account shall include the amount of dividends declared out of retained earnings during the year on all classes of outstanding shares.
(2) Subsidiary records shall be maintained showing separately the dividends declared on each class of shares.
(3) When dividends are paid in other than money, complete details of each transaction shall be maintained.
(4) Dividends declared out of contributed surplus shall be debited to account 210 (Contributed Surplus).

SCHEDULE IV(ss. 2, 6, 10, 14 and items 100, 101, 102 and 107 of Sch. I)

Index of Accounts

Plant Accounts

Intangible Plant

401 
Franchises and Consents

402 
Other Intangible Plant

Gathering Plant

410 
Land

411 
Land Rights

412 
Compressor Structures and Improvements

413 
Measuring and Regulating Structures and Improvements

414 
Other Structures and Improvements

415 
Gathering Lines

416 
Compressor Equipment

417 
Measuring and Regulating Equipment

418 
Purification Equipment

419 
Other Gathering Equipment

Products Extraction Plant

420 
Land

421 
Land Rights

422 
Structures and Improvements

423 
Extraction Equipment

424 
Products Storage Equipment

425 
Pipelines

426 
Compressor Equipment

427 
Measuring and Regulating Equipment

428 
Purification Equipment

429 
Other Products Extraction Equipment

Underground Storage Plant

450 
Land

451 
Land Rights

452 
Structures and Improvements

453 
Wells

454 
Well Equipment

455 
Field Lines

456 
Compressor Equipment

457 
Measuring and Regulating Equipment

458 
Base Pressure Gas

459 
Other Underground Storage Equipment

Transmission Plant

460 
Land

461 
Land Rights

462 
Compressor Structures and Improvements

463 
Measuring and Regulating Structures and Improvements

464 
Other Structures and Improvements

465 
Mains

466 
Compressor Equipment

467 
Measuring and Regulating Equipment

468 
Communication Structures and Equipment

469 
Other Transmission Equipment

General Plant

480 
Land

481 
Land Rights

482 
Structures and Improvements

483 
Office Furniture and Equipment

484 
Transportation Equipment

485 
Heavy Work Equipment

486 
Tools and Work Equipment

488 
Communications Structures and Equipment

489 
Other Equipment

Undistributed Plant

496 
Unclassified Plant

497 
Allowance for Funds During Construction

498 
Overhead Charged to Construction

Text Pertaining to Plant Accounts

General

(1) The total of the balances in the plant accounts shall equal the total of the balance sheet accounts 100 (Gas Plant in Service), 101 (Gas Plant Leased to Others), 102 (Gas Plant Held for Future Use) and 107 (Improvements to Facilities Leased from Others).
(2) Where the same account title is used for more than one group of plant accounts, the account text instructions are given in detail for the accounts under the gathering plant group.

Intangible Plant

401 
Franchises and Consents

(1) This account shall include

(a) amounts paid to federal, provincial or other governmental authorities in consideration for franchises, consents or certificates running in perpetuity or for a specified term of more than one year; and
(b) expenses incidental to procuring the franchises, consents or certificates of permission and approval.

(2) Where a franchise, consent or certificate is acquired by assignment, the amount paid to the assignor shall be debited to this account.
(3) Where a franchise, consent or certificate is retired or expires, the book cost shall be credited to this account.
(4) Where a franchise, consent or certificate referred to in subsection (3) is depreciable, the book cost shall be debited to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable. (See section 40 and subsection 51(2) of these Regulations)
(5) Where the franchise, consent or certificate referred to in subsection (3) is not depreciable and the gain or loss from the retirement or expiration is material, the company shall inform the Board and, unless otherwise directed by the Board, shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.
(6) Where the franchise, consent or certificate referred to in subsection (3) is not depreciable and the gain or loss from the retirement or expiration is not material, the gain or loss shall be transferred to account 319 (Other Income) or account 329 (Other Income Deductions), as applicable.
(7) Assessments with respect to franchises, consents or certificates shall not be included in this account.

402 
Other Intangible Plant

(1) This account shall include the cost of patent rights, allowances, privileges and other intangible plant necessary or valuable in the operation of a company’s gas pipeline service and not specifically provided for elsewhere.
(2) When any item included in this account is retired or expires, the cost shall be credited to this account.
(3) Where the item referred to in subsection (2) is depreciable, the cost shall be debited to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable. (See section 40 and subsection 51(2) of these Regulations)
(4) Where the item referred to in subsection (2) is not depreciable and the gain or loss from the retirement or expiration is material, the company shall inform the Board and, unless otherwise directed by the Board, shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.
(5) Where the item referred to in subsection (2) is not depreciable and the gain or loss from the retirement or expiration is not material, the gain or loss shall be transferred to account 319 (Other Income) or account 329 (Other Income Deductions), as applicable.

Gathering Plant

410 
Land

(1) This account shall include

(a) the cost of land owned in fee simple and used for the construction and operation of pipelines; and
(b) the costs of removing the property of others from the land and of relocating such property.

(2) The cost of land not used in gas pipeline service or for which there is no definite plan for use in pipeline service shall be debited to account 110 (Other Plant).
(3) Where the purchase of land for gas pipeline service requires the purchase of more land than is needed for such purposes, the charge to the specific land account shall be based upon the cost of the land purchased, less the fair market value of that portion of land that may not be included in account 100, 101 or 102.
(4) The portion of the cost of land referred to in subsection (3) that may not be included in account 100, 101 or 102 shall be debited to account 110 (Other Plant).
(5) The cost of acquiring options to purchase land for use in contemplated projects shall be debited to account 172 (Preliminary Survey and Investigation Charges) pending a determination as to whether or not to proceed with such projects.
(6) The costs of acquiring options to purchase land for use in current construction projects shall be debited to account 115 (Gas Plant Under Construction).
(7) Net proceeds from the sale of timber, minerals or improvements that were part of the land cost shall be credited to this account.
(8) Any excess of the net proceeds referred to in subsection (7) over the original cost of the timber, minerals or improvements included in the land cost shall be credited to account 319 (Other Income) if the excess is not material or, if material, to account 331 (Extraordinary Income) after Board approval has been obtained.
(9) When land is acquired together with buildings, the cost shall be fairly apportioned between land and buildings and accounted for accordingly unless the plan of acquisition contemplates the immediate removal of the buildings, in which case the entire cost shall be debited to this account and any salvage value from the buildings shall be credited to this account.
(10) Gains or losses arising from the sale of land shall be debited or credited to the appropriate income account. (See section 44 of these Regulations)
(11) The cost of clearing, levelling or grading land, both before and after the construction of facilities thereon, shall, if directly related to such facilities, be included in the plant accounts provided for the cost of the facilities constructed.

(12) Representative List of Items of Land to be included. (See section 14 of these Regulations)

Abstract

Appraisal

Arbitrator in expropriation cases

Commissions paid to others

Compensation and expenses of outside land agents when specifically assigned to acquisition of land, but not arbitrary apportionments for incidental services

Ditch for waterway when part of consideration

Engineering and survey expenses in connection with purchase of land in fee simple

Expropriation expenses, including court costs and special counsel fees

Judgments and decreed costs to clear or defend titles

Legal and notarial fees

Plans

Premium on expropriation bonds

Registering, filing and depositing title documents and plans

Payments for release and discharge of encumbrances and charges against the land

Payments for release from restrictive provisions of original title documents and for other rights

Removal and relocation of buildings and other structures not purchased

Rent of land when part of consideration for purchase

Taxes accrued and assumed at time of purchase

411 
Land Rights

(1) This account shall include amounts paid for land rights or easements and the cost incurred in connection with obtaining those land rights.
(2) Temporary land rights or easements used for construction purposes only and the cost of clearing, levelling or grading land for which the company has acquired land rights both before and after the construction of facilities thereon, but directly related to such facilities, shall be included in the plant account provided for the facilities constructed.
(3) Net proceeds from the sale of timber, minerals or improvements that were part of the cost of land rights shall be credited to this account.
(4) Any excess of the net proceeds referred to in subsection (3) over the original cost of the timber, minerals or improvements included in the cost of the land rights shall be credited to account 319 (Other Income) if the excess is not material or, if material, to account 331 (Extraordinary Income) after Board approval has been obtained.

(5) Representative List of Items of Land Rights to be included. (See section 14 of these Regulations)

Abstract expense

Engineering and survey expenses in connection with expropriation

Expropriation expense

Fees and costs of registering, filing and depositing title documents and plans

Costs of obtaining judgments and decrees relating to the clearing or defending of titles

Legal and notarial fees

Outside land right agents, compensation

Plats

Premiums on expropriation bonds

Payments for release and discharge of encumbrances and charges against the lands affected by the land rights

Payments for tenants’ consents, options and easements

Servitudes

412 
Compressor Structures and Improvements

(1) This account shall include

(a) the cost of structures and related facilities used in connection with the compressor function of gas gathering operations; and
(b) where directly related to the structures, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities.

(2) Representative List of Items of Compressor Structures and Improvements to be included. (See section 14 of these Regulations)

Boiler

Building

Drainage system

Fencing

Heating system

Hoisting equipment, attached to building

Lighting system

Lightning arrestor

Loading dock

Outdoor steel walkways and steps

Parking bumper

Pipe rack

Plumbing system

Protection system

Reservoir

Road

Sewage system

Sidewalk

Sprinkler system

Vehicular bridge

Ventilating system

Water line

Water well

413 
Measuring and Regulating Structures and Improvements

(1) This account shall include

(a) the cost of structures and related facilities used in connection with the measuring and regulating function of gas gathering operations; and
(b) where directly related to the structures, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities.

(2) Representative List of Items of Measuring and Regulating Structures and Improvements to be included. (See section 14 of these Regulations)

Boiler

Building

Drainage system

Fencing

Heating system

Hoisting equipment, attached to building

Lighting system

Lightning arrestor

Loading dock

Outdoor steel walkways and steps

Parking bumper

Pipe rack

Plumbing system

Protection system

Reservoir

Road

Sewage system

Sidewalk

Sprinkler system

Vehicular bridge

Ventilating system

Water line

Water well

414 
Other Structures and Improvements

(1) This account shall include

(a) the cost of structures and related facilities used in gas gathering operations not provided for elsewhere;
(b) where directly related to the structures, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities; and
(c) the cost of improvements to non-owned property.

(2) Representative List of Items of Other Structures and Improvements to be included. (See section 14 of these Regulations)

Boiler

Building

Drainage system

Fence foundations

Heating system

Hoisting equipment, attached to building

Lighting system

Lightning arrestor

Loading dock

Outdoor steel walkways and steps

Parking bumper

Pipe rack

Plumbing system

Protection system

Reservoir

Road

Sewage system

Sidewalk

Sprinkler system

Vehicular bridge

Water line

Water well

415 
Gathering Lines

(1) This account shall include

(a) the cost of installed line pipe and line pipe fittings laid in the construction of gathering lines between the delivery meters of separate gas fields and the meters recording delivery to the transmission system; and
(b) the cost of re-opening the trench and back-filling subsequent to original construction for the purpose of applying the original protection and casing.

(2) Representative List of Items of Gathering Lines to be included. (See section 14 of these Regulations)

Anchor block

Blow down tank

Cathodic protection device

Clearing and grading

Concrete supports

Damage to property of others

Drip assembly

Equipment foundation

Lightning arrestor

Manifold fitting

Pipe casing

Pipe fitting

Pipeline

Protective coating

River crossing header

River weight

Saddle

Structural and equipment support

Surveying

Valve

Vent

416 
Compressor Equipment

(1) This account shall include the cost of compressors and associated equipment used in connection with gas gathering operations.

(2) Representative List of Items of Compressor Equipment to be included. (See section 14 of these Regulations)

Air cleaner

Air compressor

Atmospheric type jacket water cooler

Auxiliary engine generator

Base volume index

Blower

Cathodic ground bed

Cathodic protection device

Circuit breaker and switch

Compressor

Conductor

Conduit

Controller

Control panel

Dehydrator

Drip

Duct

Electrical fitting

Equipment foundation

Filter

Fire fighting equipment

Garage equipment

Gauge

Gauge board panel

Heat exchanger

Laboratory equipment

Line casing

Line pole

Line wire

Manhole

Manometer

Meter body

Meter station header

Meter station recorder

Meter tube

Oil reclaimer

Pipe fitting

Piping

Portable meter station

Protective coating and wrap

Pulsation dampener

Pump

Rectifier

Regulator

Relay cabinet

Residence equipment

Scrubber

Shop equipment

Signal

Silencer

Station positive gas meter

Storage battery

Stores equipment

Support

Switchboard

Tank

Telemetering equipment

Transformer

Trap

Valve

Valve box

Water treating equipment

417 
Measuring and Regulating Equipment

(1) This account shall include the cost of meters, gauges and other equipment used in measuring and regulating gas before entry into the transmission system.

(2) Representative List of Items of Measuring and Regulating Equipment to be included. (See section 14 of these Regulations)

Battery

Blower

Cathodic protection device

Chemical

Circuit breaker

Conductor

Conduit

Controller

Control panel

Dehydrator

Duct

Equipment foundation

Fire fighting equipment

Gauge

Governor

Header

Heat exchanger

Laboratory equipment

Manhole

Manometer

Meter recorder

Meter tube and fitting

Odorizing equipment

Panel

Piping

Positive meter

Pulsation dampener

Pump

Regulator

Remote control

Stores equipment

Support

Switch

Switchboard

Tank

Telemetering equipment

Thermometer

Transformer

Tubing

Valve

Valve box

Valve operator

Water treating equipment

418 
Purification Equipment

(1) This account shall include the cost of condensers, dehydrators, pumps and other apparatus used for the removal of impurities from gas.

(2) Representative List of Items of Purification Equipment to be included. (See section 14 of these Regulations)

Condenser

Cooler

Dehydrator

Equipment foundation

Injection units — installed

Piping, from inlet valve of first piece of apparatus to outlet valve of final piece of apparatus (or, in building, from entrance to building to exit from building)

Platform

Pump

Railing

Scrubber

Stair

Sulphur removal apparatus

Washer cooler

Water supply system

419 
Other Gathering Equipment

This acount shall include the cost of equipment used in gas gathering operations not provided for elsewhere.

Products Extraction Plant

420 
Land

For the text of this account, see account 410.

421 
Land Rights

For the text of this account, see account 411.

422 
Products Extraction Plant Structures and Improvements

(1) This account shall include

(a) the cost of structures and related facilities used in connection with the products extraction function of gas operations; and
(b) where directly related to the structure, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities.

(2) Representative List of Items of Products Extraction Plant to be included. (See section 14 of these Regulations)

Details are the same as for account 412(2).

423 
Extraction Equipment

(1) This account shall include the cost of equipment used for the extraction from natural gas of gasoline, butane, propane or other saleable products and for the refining of such products.

(2) Representative List of Items of Extraction Equipment to be included. (See section 14 of these Regulations)

Absorber

Air Compressor

Boiler

Boiler setting

Compressed air system

Control apparatus

Cooler

Cooling tower

Crane

Dephlegmator

Dyepot

Electrical system

Foundation

Fractionating tower

Fuel regulating and measuring equipment

Gasoline blending equipment

Gauge

Generator

Header

Loading rack

Lubricating oil system

Power Line

Piping

Pump

Reabsorber

Stabilizing column

Still

Switchboard

Tank

Transformer

Valve

Water supply system

Yard lighting system

424 
Products Storage Equipment

(1) This account shall include the cost installed of storage tanks and associated equipment used in the storing, prior to sale, of gasoline, butane, propane and other saleable products extracted from natural gas.

(2) Representative List of Items of Products Storage Equipment to be included. (See section 14 of these Regulations)

Foundation

Instrument

Regulator

Storage tank

Valve

425 
Pipelines

(1) This account shall include the cost of pipelines used in connection with the processing of natural gas for the removal of gasoline, butane, propane or other saleable products, exclusive of piping that may be included in account 423 (Extraction Equipment) and account 428 (Purification Equipment).

(2) Representative List of Items of Pipelines to be included. (See section 14 of these Regulations)

Clearing and grading

Gas line off-site relating solely to extraction operations

Gathering line drip

Loading line connecting with remote off-site loading rack or storage facilities

Loading rack

Pump and driving unit

Surveying

426 
Compressor Equipment

(1) This account shall include the cost of compressor and associated equipment used in connection with the receipt, processing and return of gas processed for the removal of gasoline, butane, propane or other saleable products.
(2) Representative List of Items of Compressor Equipment to be included. (See section 14 of these Regulations)

Details are the same as for account 416(2).

427 
Measuring and Regulating Equipment

(1) This account shall include the cost of meters, gauges and other equipment used in measuring or regulating gas received or returned from processing for the removal of gasoline, butane, propane or other saleable products.
(2) Representative List of Items of Measuring and Regulating Equipment to be included. (See section 14 of these Regulations)

Details are the same as for account 417(2).

428 
Purification Equipment

For the text of this account, see account 418.

429 
Other Products Extraction Equipment

This account shall include the cost of equipment used in processing gas and refining gasoline, butane, propane and other saleable products extracted from gas, not provided for elsewhere.

Underground Storage Plant

450 
Land

For the text of this account, see account 410.

451 
Land Rights

For the text of this account, see account 411.

452 
Underground Storage Plant Structures and Improvements

(1) This account shall include

(a) the cost of structures and related facilities used in connection with the underground storage function of gas operations; and
(b) where directly related to the structures, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities.

(2) Representative Lists of Items of Underground Storage Plant Structures and Improvements to be included. (See section 14 of these Regulations)

Details are the same as for account 412(2).

453 
Wells

(1) This account shall include the cost of wells used for injection and withdrawal of gas from underground storage projects.

(2) Representative List of Items of Wells to be included. (See section 14 of these Regulations)

Clearing well site

Drilling

Drive pipe

Fuel

Hauling, erecting, dismantling and removing boiler, portable engine, derrick, ring and other equipment used in drilling

Power

Rent of drilling equipment

Water used in drilling, obtained either by drilling wells, piping from stream, or by purchase

454 
Well Equipment

(1) This account shall include the cost of equipment, in or at wells, used for injection and withdrawal of gas from underground storage.

(2) Representative List of Items of Well Equipment to be included. (See section 14 of these Regulations)

Bailing equipment

Battery equipment

Boiler and drive permanently connected

Bradenhead

Casing

Casinghead

Dehydrator

Derrick

Drip

Fence, when solely an enclosure for equipment

Packing

Separator

Tank, oil or water, etc.

Tubing

Valve

455 
Field Lines

(1) This account shall include the costs of installed pipelines used in conveying gas from the point of connection with gathering or transmission lines to underground storage wells and from underground storage wells to the point where the gas enters the transmission system.
(2) Representative List of Items of Field Lines to be included. (See section 14 of these Regulations)

Details are the same as for account 415(2).

456 
Compressor Equipment

(1) This account shall include the cost of compressor equipment used to deliver gas to underground storage or to withdraw gas from underground storage for delivery to the transmission system.
(2) Representative List of Items of Compressor Equipment to be included. (See section 14 of these Regulations)

Details are the same as for account 416(2).

457 
Measuring and Regulating Equipment

(1) This account shall include the cost of meters, gauges and other equipment used in measuring or regulating deliveries of gas to underground storage and withdrawals of gas from underground storage.
(2) Representative List of Items of Measuring and Regulating Equipment to be included. (See section 14 of these Regulations)

Details are the same as for account 417(2).

458 
Base Pressure Gas

This account shall include gas in underground storage that is required as a base pressure for the operation of underground storage areas, valued at average cost on a consistent basis. (See account 152, Gas Stored Underground — Available for Sale)

459 
Other Underground Storage Equipment

This account shall include the cost of equipment used in connection with underground storage of gas and not provided for elsewhere in these accounts.

Transmission Plant

460 
Land

For the text of this account, see account 410.

461 
Land Rights

For the text of this account, see account 411.

462 
Compressor Structures and Improvements

(1) This account shall include

(a) the cost of structures and related facilities used in connection with the compressor function of gas transmission operations; and
(b) where directly related to the structures, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities.

(2) Representative List of Items of Compressor Structures and Improvements to be included. (See section 14 of these Regulations)

Details are the same as for account 412(2).

463 
Measuring and Regulating Structures and Improvements

(1) This account shall include

(a) the cost of structures and related facilities used in connection with the measuring and regulating function of gas transmission operations; and
(b) where directly related to the structures, facilities or functions referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities.

(2) Representative List of Items of Measuring and Regulating Structures and Improvements to be included. (See section 14 of these Regulations)

Details are the same as for account 413(2).

464 
Other Structures and Improvements

(1) This account shall include

(a) the cost of structures and related facilities used in gas transmission operations not provided for elsewhere;
(b) where directly related to the structures, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities; and
(c) the cost of improvements to non-owned property.

(2) Representative List of Items of Other Structures and Improvements to be included. (See section 14 of these Regulations)

Details are the same as for account 414(2).

465 
Mains

(1) This account shall include

(a) the cost of installed line pipe and line pipe fittings laid in the construction of gas transmission lines between the discharge valve of a station and the suction valve of the next station, including pipe from receiving meters to delivery meters; and
(b) the cost of re-opening the trench and back-filling, subsequent to the original construction, for the purpose of applying the original protection and casing.

(2) Representative List of Items of Mains to be included. (See section 14 of these Regulations)

Details are the same as for account 415(2).

466 
Compressor Equipment

(1) This account shall include the cost of compressors and associated equipment used in connection with gas transmission operations.
(2) Representative List of Items of Compressor Equipment to be included. (See section 14 of these Regulations)

Details are the same as for account 416(2).

467 
Measuring and Regulating Equipment

(1) This account shall include the cost of meters, gauges and other equipment used in measuring or regulating gas in connection with gas transmission operations.
(2) Representative List of Items of Measuring and Regulating Equipment to be included. (See section 14 of these Regulations)

Details are the same as for account 417(2).

468 
Communication Structures and Equipment

(1) This account shall include the cost of telephone, telegraph, radio and other communication structures and equipment used wholly or predominantly in connection with gas transmission operations.
(2) Representative List of Items of Communication Structures and Equipment to be included. (See section 14 of these Regulations)

Telegraph and Telephone Structures and Equipment

Aerial attachment

Battery

Brace

Bracket

Building

Cable and wire

Cable box and appurtenance

Conduit and appurtenance

Connecting wire

Current controlling instrument

Cross arm and cross arm bolt

Electric generator and motor

Electric meter

Engine stationary

Fuse and mechanical protector

Guy, stub and anchor

Guy rod and wire

Insulator and pin

Rectifier

Rheostat

Pole

Sending and receiving instrument

Submarine cable and connection

Switchboard

Telephone pole box

Testing outfit

Tower

Transformer

Underground cable and connection

Radio and Radar Equipment

Aerial or antenna and attachment

Control unit

Power, generating, converting or supply equipment

Radar console and associated equipment

Radio tower

Specialized testing and repair equipment

Transmitter and receiver including mobile unit

469 
Other Transmission Equipment

This account shall include the cost of equipment used in gas transmission operations and not provided for elsewhere.

General Plant

480 
Land

For the text of this account, see account 410.

481 
Land Rights

For the text of this account, see account 411.

482 
Structures and Improvements

(1) This account shall include

(a) the cost of structures and related facilities used in gas pipeline operations and not provided for in other structures and improvements accounts;
(b) where directly related to the structures, facilities or function referred to in paragraph (a), the cost of improvements to such structures or facilities and the cost of clearing, levelling or grading land both before and after construction of the structures or facilities; and
(c) the cost of improvements to non-owned property.

(2) Representative List of Items of Structures and Improvements to be included. (See section 14 of these Regulations)

Details are the same as for account 414(2).

483 
Office Furniture and Equipment

(1) This account shall include the cost of office equipment, furniture and fixtures, when not built in or permanently attached to buildings.

(2) Representative List of Items of Office Furniture and Equipment to be included. (See section 14 of these Regulations)

Accounting machine

Adding machine

Air conditioner

Calculating machine

Carpet

Chair

Clock

Comptometer

Computer equipment

Desk

Dictating machine

Duplicating machine

Filing cabinet

Humidifier

Integrator

Lamp

Library

Locker

Photographic equipment

Projection equipment

Rug

Safe

Space heater

Table

Typewriter

Water cooler

484 
Transportation Equipment

(1) This account shall include the cost of transportation equipment used in gas pipeline operations.

(2) Representative List of Items of Transportation Equipment to be included. (See section 14 of these Regulations)

Aircraft

Aircraft engine

Aircraft float

Aircraft wheel

Automobile

Barge

Bicycle

Electric vehicle

Helicopter

Motor boat

Motorcycle

Pickup

Snow track vehicle

Station wagon

Tractor

Truck

Truck trailer

485 
Heavy Work Equipment

(1) This account shall include the cost of major items of movable equipment for use in operations, construction or maintenance of the gas pipeline system.

(2) Representative List of Items of Heavy Work Equipment to be included. (See section 14 of these Regulations)

Air compressor

Boring machine

Bulldozer

Concrete mixer and distributor

Crane

Derrick

Ditching machine

Drag Line

Generator

Heating kettle

Hoist

Pipe cleaning machine

Pipe straightening machine

Power shovel

Tamping and backfilling machine

Tractor

Trenching machine

Welding machine

486 
Tools and Work Equipment

(1) This account shall include

(a) the cost of tools and other items of equipment that are used in the construction, operation or maintenance of the gas pipeline system and that are not included in account 485 (Heavy Work Equipment);
(b) the cost of garage equipment; and
(c) the cost of large equipment of a non-movable nature.

(2) Representative List of Items of Tools and Work Equipment to be included. (See section 14 of these Regulations)

Air drill

Alcohol injector

Anvil

Barometer

Battery Charger

Bevelling machine

Blasting machine

Calorimeter

Corrosion prevention equipment

Crane

Cutter

Detector

Dew point tester

Dog house

Drilling machine

Engine

Forge

Gascope

Generator

Grinder

Greasing tools and equipment

Gun

Hand truck

Hoist

Lathe

Lawn mower

Lifting magnet

Manometer

Milling machine

Motor

Pipe coating tester

Pipe cutting and threading machine

Pipe locator

Pipe pusher

Pipe threader

Planer

Pneumatic tool

Pump

Saw

Surveying and levelling equipment

Tool cabinet

Tool kit

Tool rack

Vise

Wheelbarrow

Winch

Wrench

Work bench

488 
Communication Structures and Equipment

(1) This account shall include the cost of telegraph, telephone, radio and other communication structures and equipment used wholly or predominantly in the general operations of the company.
(2) Representative List of Items of Communication Structures and Equipment to be included. (See section 14 of these Regulations)

Details are the same as for account 468(2).

489 
Other Equipment

This account shall include the cost of equipment used in gas pipeline operations not provided for elsewhere.

Undistributed Plant

496 
Unclassified Plant

This account shall include the cost of gas plant in service pending analyses and distribution to the appropriate plant account.

497 
Allowance for Funds Used During Construction

(1) A company shall not, without the approval of the Board, charge an allowance for funds used during construction (in this section referred to as an “allowance”).
(2) The rate used to determine the amount of an allowance shall be based on a reasonable allowance for the use of funds expended during the construction period, whether or not such funds have been borrowed.
(3) Where an allowance is capitalized, the relevant amounts shall be debited to this account and concurrently credited to account 324 (Allowance for Funds Used During Construction (Credit)).
(4) An allowance capitalized prior to the coming into force of these Regulations shall be included in this account, except where it has been prorated over the appropriate plant accounts.
(5) A company may, at its option, close out this account by prorating the allowance to the plant accounts (See section 27 of these Regulations).

498 
Overhead Charged to Construction

(1) This account shall include that portion of a company’s overhead expenditure that is attributable to the acquisition of plant, such portion being calculated on the basis of actual costs equitably allocated to each job or unit.
(2) A company may, at its option, close out this account by prorating the amounts recorded therein to the appropriate plant account. (See section 26 of these Regulations)

SOR/86-998, s. 30.

SCHEDULE V(ss. 6, 11, 14 and item 300 of Sch. II)

Index of Accounts

Operation Revenue Accounts

500 
Canadian Sales

510 
Foreign Sales

529 
Other Sales

550 
Sales of Products Extracted from Gas

551 
Revenue from Natural Gas Processed by Others

570 
Transportation and Storage of Gas of Others

575 
Rent from Gas Plant

579 
Miscellaneous Operating Revenue

Text Pertaining to Operating Revenue Accounts

General

The total of the balances in the operating revenue accounts shall be included in income account 300 (Operating Revenue).
Operating Revenue

500 
Canadian Sales

This account shall include revenue from the sale of gas to utilities and other companies domiciled in Canada

510 
Foreign Sales

This account shall include revenue from the sale of gas to utilities and other companies domiciled outside Canada.

529 
Other Sales

This account shall include revenue from the sale of gas not provided for elsewhere.

550 
Sales of Products Extracted from Gas

(1) This account shall include revenues from the sale of natural gas, gasoline, butane, propane and other products extracted from gas.

(2) This account shall be subdivided as follows:

(a) natural gasoline sales;
(b) butane sales;
(c) propane sales; and
(d) other extracted products sales.

551 
Revenue from Natural Gas Processed by Others

This account shall include the revenue derived from royalties and permits or from any other basis of settlement arising from permission granted to others for the right to remove products from natural gas.

570 
Transportation and Storage of Gas of Others

This account shall include the revenue from transporting and storing non-owned gas in the company’s system.

575 
Rent from Gas Plant

This account shall include rent revenues from the use by others of assets included in account 100 (Gas Plant in Service).

579 
Miscellaneous Operating Revenue

This account shall include

(a) revenues earned in consideration of the performance of exchange gas services; and
(b) other miscellaneous operating revenue not provided for elsewhere.

SCHEDULE VI(ss. 6, 12, 14 and item 301 of Sch. II)

Index of Accounts

Operating Expense Accounts

Gathering Operation

610 
Supervision

612 
Gathering of Gas by Others

615 
Pipeline

616 
Compressor

617 
Measuring and Regulating

618 
Purification

619 
Other Gathering Operations

Products Extraction Operation

620 
Supervision

621 
Extraction and Refining

622 
Gas Processing by Others

Gas Supply

623 
Gas Purchases

626 
Exchange Gas

627 
Gas Withdrawn from Underground Storage

628 
Gas Delivered to Underground Storage (Credit)

629 
Gas used (Credit)

Underground Storage Operation

650 
Supervision

651 
Exploration and Development

653 
Wells

654 
Gas Losses

655 
Field Line

656 
Compressor

657 
Measuring and Regulating

658 
Purification

659 
Other Underground Storage Operations

Transmission Operation

660 
Supervision

663 
Transportation of Gas by Others

664 
Communication

665 
Pipeline

666 
Compressor

667 
Measuring and Regulating

669 
Other Transmission Operations

General Operation

684 
Communication

685 
System Operation and Engineering

688 
Other General Operations

689 
General Operations Transferred (Credit)

Administrative and General Expense

721 
Administrative Expense

722 
Special Services

723 
Insurance

724 
Injuries and Damages

725 
Employee Benefits

728 
Other General Expense

729 
Administrative and General Expense Transferred (Credit)

Text Pertaining to Operating Expense Accounts

General

(1) The total of the balances in the operating expense accounts is included in income account 301 (Operating Expenses).
(2) Where the same account title is used in more than one group of operating expense accounts, the account text instructions are given in detail for the accounts under the gathering group.

Gathering Operation

610 
Supervision

(1) This account shall include the cost of labour, supplies and expenses incurred at a division, district or similar field office in the general supervision of the operation of the gathering system facilities.

(2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

Salaries and wages of superintendents, engineers, clerks, stenographers and other field office employees

Travelling, subsistence, automotive and incidental expenses of employees

Office supplies and expenses such as stationery, postage, maps, telephone, telegraph, light, heat, water

Rents, janitor services and supplies, maintenance of office buildings and equipment

612 
Gathering of Gas by Others

This account shall include the cost of gathering charges paid to others where the charges are separate and not included as part of the delivered price of gas.

615 
Pipeline

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system pipeline facilities.

(2) Representative List of Items of Pipeline to be included. (See section 14 of these Regulations)

Direct supervision

Inspecting and lubricating valves, injectors, etc.

Blowing and cleaning lines, drips, traps, injectors, etc., thawing freeze-ups

Injection of kontol, methanol, glycol and other chemicals

Reading and reporting line pressures, changing charts

Stand-by time of crews, time spent fire fighting and for other local services

Cutting grass and weeds, clearing brush, fallen trees and other debris, removing snow on right-of-way and access roads

Patrolling lines

Cleaning buildings and other structures

Supplies such as lubricants, wiping rags, charts, chemicals, light bulbs, hand tools and general equipment

Expenses such as the use of automotive trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employees travelling and subsistence, employee housing

Gas used or lost in pipeline operations

616 
Compressor

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system compressor stations and facilities.

(2) Representative Lists of Items of Compressor to be included. (See section 14 of these Regulations)

Direct supervision

Operating, cleaning, lubricating engines, generators and other equipment

Packing valves, changing gauge glasses, changing oil and air filter elements

Reading metering instruments, changing charts

Taking water samples, dew point readings, testing and recording

Tending station grounds, removing snow

Cleaning buildings and other structures

Preparing logs and other clerical work

Supplies such as lubricants, wiping rags, charts, chemicals, light bulbs, cleaning and washrooms supplies, first aid supplies, landscaping supplies, hand tools and equipment

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, waters, telephone, telegraph, rents, employee travelling and subsistence, employee housing

Gas used or lost in compressor operations

617 
Measuring and Regulating

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system measuring and regulating stations and facilities.

(2) Representative List of Items of Measuring and Regulating to be included. (See section 14 of these Regulations)

Direct supervision

Operating, inspecting, testing, adjusting, cleaning and calibrating equipment

Changing meters, orifice plates, clocks, etc.

Recording pressures, reading meters, changing charts

Taking gas samples, water samples, dew point readings, testing and recording

Inspecting, cleaning and blowing drips, pits, sumps, etc.

Tending station grounds, removing snow

Cleaning buildings and other structures

Preparing reports and other clerical work

Supplies such as lubricants, wiping rags, charts, chemicals, pens, ink, mercury, light bulbs, cleaning and washroom supplies, first aid supplies, landscaping supplies and tools and general equipment

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing.

618 
Purification

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of gathering system purification facilities.

(2) Representative List of Items of Purification to be included. (See section 14 of these Regulations)

Direct supervision

Changing charts on fuel meters

Emptying, cleaning and refilling purifier boxes

Oiling dip-sheets of purifier covers

Removing spent oxide to refuse piles

Revivifying oxide

Taking readings of inlet and outlet pressures and temperature

Unloading and storing glycol

Watching station and equipment

Cutting grass and weeds, and minor grading around equipment and stations

Hauling materials, supplies and tools, etc.

Inspecting and testing equipment, not specifically to determine necessity for repairs or replacement of parts

Lubricating equipment valves, etc.

Operating and checking equipment, valve instruments, etc.

Supplies such as liquid purifying supplies, wiping rags, charts, chemicals, light bulbs, cleaning and washroom supplies, first aid supplies, hand tools and equipment

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing

Gas used or lost in purification operations

619 
Other Gathering Operations

This account shall include the cost of labour, supplies and expenses that are incurred in the operation of the gathering system facilities and that are not provided for elsewhere.

Products Extraction Operation

620 
Supervision

(1) This account shall include the cost of labour, supplies and expenses incurred in the general supervision of the operation of product extraction and refining facilities
(2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

Details are the same as for account 610(2).

621 
Extraction and Refining

(1) This account shall include:

(a) the cost of labour, supplies and expenses incurred in the operation of products extraction and refining facilities; and
(b) direct supervision of specific activities such as power plant, extraction and refining units, laboratory and warehouse facilities.

(2) Representative List of Items of Extraction and Refining to be included. (See section 14 of these Regulations)

Direct supervision

Operating, cleaning, lubricating machinery, valves, gauges, instruments and other equipment

Inspecting and testing instruments and other equipment

Reading meters, gauges and other instruments, changing charts, gauge glasses

Taking and testing water samples, gas samples and other similar laboratory services

Tending plant grounds, removing snow

Producing electricity, steam, pumping cooling water

Preparing logs, reports and other data

Supplies such as amine, dehydration agents, water treatment and other chemicals, absorption oil, lubricants, wiping rags, charts, light bulbs, gauge glasses, cleaning and washroom supplies, first aid supplies, landscaping supplies, gas used or lost in operations, hand tools and equipment

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, power, water, telephone, telegraph, rents employee travelling and subsistence, employee housing.

622 
Gas Processing by Others

This account shall include the cost of gas shrinkage, gas consumed for fuel, royalties and other expenses in connection with the processing of gas of the company by others for extraction of saleable products.

Gas Supply Accounts

623 
Gas Purchases

This account shall include the cost, at point of receipt by the company, of all gas purchased.

626 
Exchange Gas

(1) Except in the case of minor transactions, this account shall include the debits or credits for the cost of gas in unbalanced exchange transactions with another party when the delivery or receipt of the gas is not completed during the accounting period.
(2) If revenue is earned in consideration of the performance of exchange services, it shall be recorded in account 579 (Miscellaneous Operating Revenues).

627 
Gas Withdrawn from Underground Storage

This account shall include the cost of gas withdrawn from underground storage and such cost shall be concurrently credited to account 152 (Gas Stored Underground — Available for Sale).

628 

Gas Delivered to Underground Storage (Credit)

This account shall be credited with the cost of gas delivered to underground storage and such cost shall be concurrently debited to account 152 (Gas Stored Underground — Available for Sale).

629 

Gas Used (Credit)

(1) This account shall be credited with the cost of gas used for other than storage purposes and such cost shall be concurrently debited to operating expenses, construction or other accounts.

(2) This account shall be subdivided as follows:

(a) gas used in construction;
(b) gas used in products extraction; and
(c) gas used in operations or for other purposes.

Underground Storage Operation

650 
Supervision

(1) This account shall include the cost of labour, supplies and expenses incurred in the general supervision of the operation of underground storage facilities.
(2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

Details are the same as for account 610(2).

651 
Exploration and Development

(1) This account shall include

(a) the cost of labour, supplies and expenses incurred in the investigation, exploration and development of underground projects that do not prove feasible; and
(b) the net cost of drilling non-operative wells within an existing storage project.

(2) Where the costs described in subsection (1) are material in relation to the net income of the year, the company may prepare and submit to the Board, for its approval, an alternative method of accounting.

653 
Wells

(1) This account shall include the cost of labour, supplies and expenses incurred

(a) in the operation of underground storage system wells and facilities; and
(b) in the drilling of wells used for storage purposes.

(2) Representative List of Items of Wells to be included. (See section 14 of these Regulations)

Direct supervision

Testing, bailing, swabbing, blowing and gauging storage wells

Paintings, signs

Minor upkeep of well roads, fences

Turning storage wells on and off

Moving cleaning-out tools between locations

Supplies such as gas, gasoline, oil used in pumping and bailing, lumber, nails, well swabs, chemicals, first aid supplies, hand tools and equipment

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing

654 
Gas Losses

(1) This account shall include the amounts of inventory adjustments representing the cost of gas lost or unaccounted for in underground storage operations due to cumulative inaccuracies of gas measurement or other causes.
(2) Adjustments relating to prior years shall be accounted for in accordance with section 78.

655 
Field Line

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage field line and facilities.
(2) Representative List of Items of Field Line to be included. (See section 14 of these Regulations)

Details are the same as for account 615(2).

656 
Compressor

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system compressor stations and facilities.
(2) Representative List of Items of Compressor to be included. (See section 14 of these Regulations)

Details are the same as for account 616(2).

657 
Measuring and Regulating

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system measuring and regulating facilities.
(2) Representative List of Items of Measuring and Regulating to be included. (See section 14 of these Regulations)

Details are the same as for account 617(2).

658 
Purification

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system purification facilities.
(2) Representative List of Items of Purification to be included. (See section 14 of these Regulations)

Details are the same as for account 618(2).

659 
Other Underground Storage Operations

This account shall include the cost of labour, supplies and expenses incurred in the operation of underground storage system facilities not provided for elsewhere.

Transmission Operation

660 
Supervision

(1) This account shall include the cost of labour, supplies and expenses incurred at a division, district or similar field office in the general supervision of the operation of transmission system facilities.
(2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

Details are the same as for account 610(2).

663 
Transportation of Gas by Others

This account shall include the cost of transportation charges paid to others where the charges are separate and not included as part of the delivery price of gas.

664 
Communication

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of facilities used wholly or predominantly in connection with the transmission communication system.

(2) Representative List of Items of Communication to be included. (See section 14 of these Regulations)

Direct supervision

Operating radio equipment, microwave equipment, power generators

Inspecting, testing, cleaning and lubricating equipment

Inspecting and cleaning buildings and other structures

Refuelling fuel tanks at station sites

Patrolling lines

Cutting grass and weeds, clearing brush, fallen trees and other debris, removing snow from access roads, station sites and structures

Supplies such as lubricants, wiping rags, charts, chemicals, hand tools, testing and other general equipment

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, first aid supplies, radio tubes and crystals, landscaping supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing

Changing radio frequencies

Transferring mobile radios between vehicles

Changing locations of communication equipment not relocated in connection with maintenance or construction

665 
Pipeline

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of transmission system pipeline and facilities.
(2) Representative List of Items of Pipeline to be included. (See section 14 of these Regulations)

Details are the same as for account 615(2).

666 
Compressor

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of transmission system compressor stations and facilities.
(2) Representative List of Items of Compressor to be included. (See section 14 of these Regulations)

Details are the same as for account 616(2).

667 
Measuring and Regulating

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of transmission system measuring and regulating stations and facilities.
(2) Representative List of Items of Measuring and Regulating to be included. (See section 14 of these Regulations)

Details are the same as for account 617(2).

669 
Other Transmission Operations

This account shall include the cost of labour, supplies and expenses that are incurred in the operation of the transmission system facilities and that are not provided for elsewhere.

General Operations

684 
Communication

(1) This account shall include the cost of labour, supplies and expenses incurred in the operation of facilities used wholly or predominantly in connection with the general communicating system.

(2) Representative List of Items of Communication to be included. (See section 14 of these Regulations)

Direct supervision

Operating radio equipment, microwave equipment and power generators

Inspecting, testing, cleaning and lubricating equipment

Inspecting and cleaning buildings and other structures

Refuelling fuel tanks at station sites

Patrolling lines

Cutting grass and weeds, clearing brush, fallen trees and other debris, removing snow from access roads, station sites and structures

Supplies such as lubricants, wiping rags, charts, chemicals, hand tools, testing and other general equipment

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, first aid supplies, radio tubes and crystals, landscaping supplies, light, heat, water, telephone, telegraph, rents, employee travelling and subsistence, employee housing

Transferring mobile radios between vehicles

Changing locations of communication equipment not in connection with maintenance or construction

685 
System Operation and Engineering

(1) This account shall include the cost of labour, supplies and expenses incurred at the general offices of the company for the operation and engineering of the pipeline system.

(2) Representative List of Items of System Operation and Engineering to be included. (See section 14 of these Regulations)

Salaries and wages of superintendents, engineers, clerks, stenographers and other employees of the general operating and engineering departments

Travelling, subsistence, automotive and incidental expenses of employees

Office supplies and expenses such as stationery, printing, postage, maps, drawings, telephone, telegraph, light, heat, water

Rents, janitor services and supplies, maintenance of office building and office equipment

688 
Other General Operations

This account shall include the cost of labour, supplies and expenses that are incurred in the general operation of the pipeline system facilities and that are not provided for elsewhere.

689 

General Operations Transferred (Credit)

This account shall be credited with the costs of general operations transferred to other accounts, such as costs transferred to overhead charged to construction.

Administrative and General Expense

721 
Administrative Expense

(1) This account shall include the cost of salaries, supplies and expenses incurred in the general administration of the company where such costs are assignable to specific executive, administrative and general departments and are not chargeable to any other of the operating service functions listed in paragraphs 12(4) (a) to (f) inclusive.

(2) Representative List of Items of Administrative Expense to be included. (See section 14 of these Regulations)

Salaries and wages of officers, executives and other employees

Expenses of officers, executives and other employees such as travelling and subsistence, automotive, club and professional dues and expenses, and other incidental expenses

Office supplies and expenses such as stationery, printing, postage, maps, drawings, telephone, telegraph, light, heat, water

Rents, janitor services and supplies, maintenance of office building and office equipment

722 
Special Services

(1) This account shall include the fees and expenses of professional consultants and others for general services not applicable to any other particular operating functions. (See subsection 12(3) of these Regulations)

(2) Representative List of Items of Special Services to be included. (See section 14 of these Regulations)

Fees and expenses of auditors, accountants, appraisers, engineering consultants, management consultants, legal consultants, public relations and labour consultants

Fees and expenses paid under contracts for general management services

Pay and expenses of persons engaged for a special administrative or general purpose where the person so engaged is not considered an employee of the company

723 
Insurance

(1) This account shall include the premium payable to insurance companies against any loss that may be sustained by the company.
(2) Where the company provides self-insurance, the reserve accruals shall be debited to this account and concurrently credited to account 290 (Insurance Reserves). (See sections 21 and 61 of these Regulations)

(3) Representative List of Items of Insurance to be included. (See section 14 of these Regulations)

Fire, storm, burglary, boiler explosion, lightning, riot and fidelity

Public liability, casualty, property damage and employee liability

724 
Injuries and Damages

(1) This account shall include all expenses, including losses not recovered by insurance but excluding law expenses incurred in the settlement of injury and damage claims.

(2) Representative List of Items of Injuries and Damages to be included. (See section 14 of these Regulations)

Losses not covered by insurance on account of injuries to employees or others and damages to property of others

Fees and expenses of claims of outside investigators and adjusters

Payments of awards to claimants for court costs and legal services

Medical and hospital services and other expenses of claimants

725 
Employee Benefits

(1) This account shall include

(a) payments or contributions to provide pension in respect of past or current services of employees;
(b) salaries or wages paid to employees disabled by injuries after the employees have been off duty for a reasonable length of time;
(c) amounts paid or contributed for the relief or welfare of employees, including any expenses related thereto; and
(d) premiums for group, life, medical, hospital, accident and sickness insurance.

(2) Where the company has instituted a pension fund, trust fund or welfare fund, the contributions shall be debited to this account and transferred to such pension, trust or welfare fund.
(3) Where the company does not institute a pension or trust fund but makes provision for a reserve against pension or welfare, the reserve accrual shall be debited to this account and concurrently credited to account 291 (Welfare and Pension Reserves).

(4) Representative List of Items of Employee Benefits to be included. (See section 14 of these Regulations)

Payments to or on behalf of employees or pensioners, and to pension funds or to insurance companies for pension purposes

Payments for group and life insurance premiums

Payments for medical, hospital and other accident and sickness expenses, either directly or to insurance companies or others

Payments to employees disabled by accident or sickness when off duty for a reasonable length of time

Savings plan contributions

Expenses in connection with educational, recreational and social activities for the benefit of employees

728 
Other General Expense

(1) This account shall include expenses that are incurred in connection with the general management of the company and that are not provided for elsewhere.

(2) Representative List of Items of Other General Expense to be included. (See section 14 of these Regulations)

Industry association dues for company memberships

Contributions for conventions and meetings of the industry

Contributions to the experimental and research work of the industry, including scholarships and similar grants

Trustee, registrar, and transfer agents, fees and expenses and other fiscal or corporate expenses

Stockholders’ meeting expenses

Publishing and printing annual reports

Advertising and promotion

Donations

Bad Debts

729 

Administrative and General Expense Transferred (Credit)

(1) This account shall be credited with the amounts of administrative and general expenses that are allocated to other accounts or to overhead during construction.
(2) The method and basis of allocation referred to in subsection (1) shall be maintained in subsidiary records.

SCHEDULE VII(ss. 6, 12, 14, 46 and item 302 of Sch. II)

Index of Accounts

Maintenance Expense Accounts

Gathering Maintenance

810 
Supervision

815 
Pipeline

816 
Compressor

817 
Measuring and Regulating

818 
Purification

819 
Other Gathering Maintenance

Products Extraction Maintenance

820 
Supervision

821 
Extraction and Refining

Underground Storage Maintenance

850 
Supervision

853 
Wells

855 
Field Line

856 
Compressor

857 
Measuring and Regulating

858 
Purification

859 
Other Underground Storage Maintenance

Transmission Maintenance

860 
Supervision

864 
Communication

865 
Pipeline

866 
Compressor

867 
Measuring and Regulating

869 
Other Transmission Maintenance

General Maintenance

884 
Communication

885 
System Maintenance and Engineering

888 
Other General Maintenance

889 
General Maintenance Transferred (Credit)

Text Pertaining to Maintenance Expense Accounts

General

(1) The total of the balances in the maintenance expense accounts shall be included in income account 302 (Maintenance Expenses).
(2) Where the same account title is used in more than one group of maintenance expense accounts, the account text instructions are given in detail for the accounts under the gathering group.

Gathering Maintenance

810 
Supervision

(1) This account shall include the cost of labour, supplies and expenses incurred at a division, district or similar field office in the general supervision of the maintenance of gathering system facilities.

(2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

Salaries and wages of superintendents, supervisors, engineers, clerks, stenographers and other office employees

Travelling, subsistence, automotive and incidental expenses of employees

Office supplies and expenses, such as stationery, postage, drawings, telephone, telegraph, light, heat and water

Rents, janitor services and supplies, repairs of buildings and equipment

815 
Pipeline

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of gathering system pipeline and facilities.

(2) Representative List of Items of Pipeline to be included. (See section 14 of these Regulations)

Direct supervision

Repairs to and protection of right-of-way

Repairs to access roads

Repairs to fences, aerial markers, signs

Repairs to river crossings, including bridges

Repairs to valves, boxes, drips, scraper traps, chemical injectors, dehydrators, cathodic protection equipment

Repairs to tools, testing equipment and other general equipment

Repairs to buildings and other structures

Repairs to pipe and fittings, renewing and replacing in kind less than a unit of line pipe

Inspecting and testing after repairs have been made

Repainting

Materials and supplies used in repair work

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of material, employee travelling and subsistence

816 
Compressor

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of gathering system compressor stations and facilities.

(2) Representative List of Items of Compressor to be included. (See section 14 of these Regulations)

Direct supervision

Repairs to compressor engines, generators and other equipment

Repairs to tools, testing equipment and other general equipment

Inspecting and testing after repairs have been made

Repairs to station grounds, buildings and other structures

Repairs to access roads

Repairs to fences and signs

Repainting

Materials and supplies used in repair work

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of material, employee travelling and subsistence

817 
Measuring and Regulating

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of gathering system measuring and regulating stations and facilities.

(2) Representative List of Items of Measuring and Regulating to be included. (See section 14 of these Regulations)

Direct supervision

Repairs to measuring, regulating and other equipment

Repairs to tools, testing equipment and other general equipment

Inspecting and testing after repairs have been made

Repairs to station grounds, buildings and other structures

Repairs to access roads

Repairs to fences and signs

Repainting

Materials and supplies used in repair work

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of material, employee travelling and subsistence

818 
Purification

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of gathering system purification facilities.

(2) Representative List of Items of Purification to be included. (See section 14 of these Regulations)

Direct supervision

Repairs to purification equipment

Repairs to tools, testing equipment and other equipment

Materials and supplies used in repair work

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of material, employee travelling and subsistence

819 
Other Gathering Maintenance

This account shall include the cost of labour, supplies and expenses that are incurred in the maintenance of gas gathering system facilities and that are not provided for elsewhere.

Products Extraction Maintenance

820 
Supervision

(1) This account shall include the cost of labour, supplies and expenses incurred in the general supervision of the maintenance of products extraction and refining facilities.
(2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

Details are the same as for account 810(2).

821 
Extraction and Refining

(1) This account shall include

(a) the cost of labour, supplies and expenses incurred in the maintenance of products extraction and refining facilities; and
(b) the cost of direct supervision of specific activities such as power plant, extraction and refining units, laboratory and warehouse facilities.

(2) Representative List of Items of Extraction and Refining to be included. (See section 14 of these Regulations)

Direct supervision

Repairs to absorbers, stills, dehydrators, scrubbers, towers, condensers

Repairs to boilers, generators, motors, pumps, valves

Repairs to electrical, water and piping systems

Repairs to overhead cranes, trolleys, hoists

Repairs to plant grounds, fences, buildings, tanks and other structure

Repairs to regulating and measurement instruments and equipment

Repairs to tools, testing and other general equipment

Repainting

Materials and supplies used in repair work

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of materials, employee travelling and subsistence

Underground Storage Maintenance

850 
Supervision

(1) This account shall include the cost of labour, supplies and expenses incurred in the general supervision of the maintenance of underground storage system facilities.
(2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

Details are the same as for account 810(2).

853 
Wells

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of underground storage system wells and facilities.

(2) Representative List of Items of Wells to be included. (See section 14 of these Regulations)

Direct supervision

Repairs to well head equipment, tools and testing equipment

Repairs to access roads, fences and signs

Materials and supplies used in repair work

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of materials, employee travelling and subsistence

855 
Field Line

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of underground storage system field lines and facilities.
(2) Representative List of Items of Field Line to be included. (See section 14 of these Regulations)

Details are the same as for account 815(2).

856 
Compressor

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of underground system compressor stations and facilities.
(2) Representative List of Items of Compressor to be included. (See section 14 of these Regulations)

Details are the same as for account 816(2).

857 
Measuring and Regulating

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of underground system measuring and regulating facilities.
(2) Representative List of Items of Measuring and Regulating to be included. (See section 14 of these Regulations)

Details are the same as for account 817(2).

858 
Purification

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of underground storage system purification facilities.
(2) Representative List of Items of Purification to be included. (See section 14 of these Regulations)

Details are the same as for account 818(2).

859 
Other Products Extraction Maintenance

This account shall include the cost of labour, supplies and expenses that are incurred in the maintenance of underground storage system facilities and that are not provided for elsewhere.

Transmission Maintenance

860 
Supervision

(1) This account shall include the cost of labour, supplies and expenses incurred at a division, district or similar field office in the general supervision of the maintenance of the transmission system facilities.
(2) Representative List of Items of Supervision to be included. (See section 14 of these Regulations)

Details are the same as for account 810(2).

864 
Communication

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of facilities used wholly or predominantly in connection with the transmission communication system.

(2) Representative List of Items of Communication to be included. (See section 14 of these Regulations)

Direct supervision

Repairs to radio and telephone equipment and to power lines

Repairs to tools, testing equipment and other general equipment

Inspecting and testing after repairs have been made

Repairs to access roads, station grounds, buildings and other structures

Repairs to fences and signs

Repainting

Materials and supplies used in repair work

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of supplies, employee travelling and subsistence

865 
Pipeline

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of transmission system pipeline and facilities.
(2) Representative List of Items of Pipeline to be included. (See section 14 of these Regulations)

Details are the same as for account 815(2).

866 
Compressor

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of transmission system compressor stations and facilities.
(2) Representative List of Items of Compressor to be included. (See section 14 of these Regulations)

Details are the same as for account 816(2).

867 
Measuring and Regulating

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of transmission system measuring and regulating stations and facilities.
(2) Representative List of Items of Measuring and Regulating to be included. (See section 14 of these Regulations)

Details are the same as for account 817(2).

869 
Other Transmission Maintenance

This account shall include the costs of labour, supplies and expenses that are incurred in the maintenance of gas transmission system facilities and that are not provided for elsewhere.

General Maintenance

884 
Communication

(1) This account shall include the cost of labour, supplies and expenses incurred in the maintenance of facilities used wholly or predominantly in the general communication system.

(2) Representative List of Items of Communication to be included. (See section 14 of these Regulations)

Direct supervision

Repairs to radio and telephone equipment and to power lines

Repairs to tools, testing equipment and other general equipment

Inspecting and testing after repairs have been made

Repairs to access roads, station grounds, buildings and other structures

Repairs to fences and signs

Repainting

Materials and supplies used in repair work

Expenses such as use of automotive, trucking, aircraft and heavy work equipment, transportation of material, employee travelling and subsistence

885 
System Maintenance and Engineering

This account shall include the cost of labour, supplies and expenses incurred at the general offices of the company for the maintenance of the pipeline system.

888 
Other General Maintenance

This account shall include the costs of labour, supplies and expenses that are incurred in the general maintenance of the pipeline system facilities and that are not provided for elsewhere.

889 
General Maintenance Transferred (Credit)

This account shall be credited with the cost of general maintenance transferred to other accounts, such as costs transferred to overhead charged to construction.

SOR/86-998, s. 31(F).

SCHEDULE VIII(s. 5)

Group 1 Companies

Alberta Natural Gas Company Ltd.

Foothills Pipe Lines Ltd.

TransCanada PipeLines Limited

Trans Quebec and Maritimes Pipeline Inc.

Westcoast Transmission Company Limited

SOR/86-998, s. 32.