Oil Pipeline Uniform Accounting Regulations

40 (1) In respect of depreciable plant, extraordinary retirement means a retirement of depreciable plant that results from causes not reasonably assumed to have been anticipated or contemplated in prior depreciation or amortization provisions, including such causes as fire, storm, flood, sudden and complete obsolescence or unexpected and permanent shutdown of an entire operating assembly.

(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 31 (Accumulated Depreciation-Transportation Plant) or account 32 (Accumulated Amortization-Transportation Plant) to account 402 (Extraordinary Income) or to account 422 (Extraordinary Income Deductions), as applicable.

(3) Immaterial gains or losses resulting from extraordinary retirements shall be accounted for in the same way as ordinary retirements.