Oil Pipeline Uniform Accounting Regulations

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 303 (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 income to account 302 for the year.