Oil Pipeline Uniform Accounting Regulations

10 (1) Income accounts, set out in Schedule IV as account series 400, 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 402 (Extraordinary Income) or account 422 (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 items means material gains or losses that are not typical of a company’s normal business activities, are not expected to occur regularly over a period of years and would not be considered as recurring factors in any evaluation of the ordinary operating process of the company.

(5) 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 an extraordinary 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 income to account 302 for the year.