Oil Pipeline Uniform Accounting Regulations

62 (1) Cash, securities or other assets set aside for a specific purpose shall be debited to account 22 (Sinking Funds), account 23 (Miscellaneous Special Funds), or account 3 (Special Deposits), as applicable, and the appropriate asset account shall be credited.

(2) Income from assets held in account 22 (Sinking Funds) and account 23 (Miscellaneous Special Funds) shall be credited to account 407 (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 23 (Miscellaneous Special Funds), and represents a company’s contribution to account 70 (Welfare and Pension Appropriations) or to account 72 (Insurance Appropriations), the company shall concurrently debit account 420 (Other Income Deductions) and credit account 70 or 72, as applicable, with the amount transferred.

(5) A company’s contribution to account 70 (Welfare and Pension Appropriations) or to account 72 (Insurance Appropriations) shall be provided by debits to expenses.

(6) Where the gain or loss on the sale of assets recorded in account 22 (Sinking Funds) or account 23 (Miscellaneous Special Funds) is material, the company shall inform the Board and shall transfer the gain or loss to account 402 (Extraordinary Income) or to account 422 (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 407 (Income from Sinking and Other Funds) or to account 420 (Other Income Deductions), as applicable.