Oil Pipeline Uniform Accounting Regulations
SCHEDULE I(ss. 6 and 7)
Index of Accounts
Balance Sheet Accounts
Assets
Current Assets
- 1Cash
- 2Temporary cash investments
- 3Special deposits
- 4Accounts receivable — trade
- 5Accounts receivable — other
- 6Accounts receivable — affiliated companies
- 7Interest and dividends receivable
- 8Materials and supplies
- 9Oil inventory
- 12Other current assets
- 15Prepaid expenses
Investments
- 20Investments in affiliated companies
- 21Other investments
- 22Sinking funds
- 23Miscellaneous special funds
- 24Company long term debt owned
Fixed Assets
- 30Transportation plant
- 31Accumulated depreciation — transportation plant
- 32Accumulated amortization — transportation plant
- 33Operating oil supply
- 34Other plant
- 35Accumulated depreciation — other plant
- 36Improvements to leased facilities
- 37Accumulated amortization — improvements to leased facilities
- 38Transportation plant leased to others
- 39Transportation plant under construction
- 40Accumulated amortization — other plant
Deferred Debits
- 41Unamortized debt discount and expense
- 42Organization expenses
- 43Public improvements
- 44Preliminary survey and investigation costs
- 45Other deferred debits
Liabilities
Current Liabilities
- 50Loans and notes payable
- 51Joint revenue payable
- 52Accounts payable and accrued
- 53Accounts payable — affiliated companies
- 54Interest payable and accrued
- 55Dividends payable
- 56Taxes accrued
- 57Long term debt due within one year
- 60Other current liabilities
Deferred Credits and Appropriations
- 70Welfare and pension appropriations
- 71Accumulated tax reductions applicable to future years
- 72Insurance appropriations
- 73Maintenance expense equalization
- 74Allowance for loss in value of investments
- 75Allowance for doubtful accounts
- 76Unamortized premium on long term debt
- 78Other deferred credits
Long Term Liabilities
- 80Long term debt
- 85Advances from affiliated companies
- 86Other long term debt
Capital Stock and Surplus
- 90Capital stock
- 91Contributed surplus
- 92Retained earnings
- 93Excess of appraised value of fixed assets over depreciated cost
Text Pertaining to Balance Sheet Accounts
Assets
Current Assets
1 Cash
This account shall include
(a) commercial bank accounts available for general chequing purposes as distinguished from bank accounts provided for special deposits or other special purposes;
(b) petty cash funds; and
(c) funds received by a company, recorded as cash receipts and undeposited at the close of the accounting period.
2 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 Regulations, sections 63, 64 and 65).
3 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, or unemployment insurance commissions.
4 Accounts Receivable — Trade
This account shall include amounts receivable for the transportation, storage and delivery of oil, exclusive of such amounts receivable from affiliated companies.
5 Accounts Receivable — Other
This account shall include the following items when the amounts involved are considered collectable:
(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 Regulations, section 75).
6 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 Regulations, section 80).
(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 when such interest is subject to current settlement; and
(f) miscellaneous receivables.
7 Interest and Dividends Receivable
(1) This account shall include the amount of interest accrued to the date of the balance sheet on
(a) bonds owned,
(b) loans made, and
(c) the amount of dividends declared on stocks 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.
8 Materials and 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 the cost of materials referred to in account 39 (Transportation Plant Under Construction).
(2) Materials and supplies purchased shall be debited to this account at their actual costs at the point of free delivery plus transportation costs, ad valorem taxes and any other relevant costs and in determining the cost of materials and supplies, allowance shall be made for all discounts allowed in their purchase.
(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) Materials recovered in connection with construction, maintenance work or the replacement or demolition of plant shall be debited to this account at their original cost, estimated if not known, less a fair allowance for depreciation, and concurrently credited to the appropriate construction, maintenance or accumulated depreciation account.
(5) Where 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 which were credited when the material was recovered.
9 Oil Inventory
(1) This account shall include the balances representing the value of oil owned by the company other than the value of oil used to maintain lines and storage tanks in condition for the transportation of commercial oil.
(2) The oil stock referred to in subsection (1) shall be valued at not more than its market value at point of delivery at the balance sheet date. (See Regulations, sections 81 and 82).
12 Other Current Assets
This account shall include current assets not provided for in other accounts under the Regulations.
15 Prepaid Expenses
(1) Expenses paid in advance by the accounting company to cover any future period of time shall be entered in this account until subsequently debited to appropriate accounts.
(2) The prepaid expense account shall be maintained so as to disclose the amount of each class of expenditure.
Investments
20 Investments in Affiliated Companies
(1) This account shall include the cost of the company’s investment in securities issued or assumed by affiliated companies and investment advances made to affiliated companies. (See Regulations, sections 63, 66, 67 and 68).
(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) stocks;
(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 security referred to in subsection (2) is pledged, a complete record thereof shall be maintained.
21 Other Investments
(1) This account shall include
(a) the cost of the 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 Regulations, sections 63, 66 and 67).
(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) stocks;
(b) bonds and debentures;
(c) other secured obligations;
(d) unsecured notes;
(e) investment advances;
(f) interest accrued on any of the above when interest is not subject to current settlement; and
(g) miscellaneous investments.
(3) Where any security referred to in subsection (2) is pledged, a complete record thereof shall be maintained.
22 Sinking Funds
(1) This account shall include cash and the cost of securities and other assets that
(a) have been segregated in distinct funds;
(b) are for the purpose of providing resources for the redemption of debt or capital stock; and
(c) are held by trustees or by the company’s treasurer.
(2) A separate account shall be kept for the sinking funds applicable to each class of debt or capital stock issue.
(3) An appropriate record shall be maintained for securities issued or assumed by the company and held in sinking funds. (See Regulations, section 62).
23 Miscellaneous Special Funds
(1) This account shall include cash and the cost of securities and other assets that are held by trustees, managers or the company’s treasurer and that have been segregated in funds for insurance, employees’ pensions, savings, relief, hospital and other purposes not provided for in other accounts under the Regulations.
(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 Regulations, section 62).
24 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 Regulations, section 74).
(2) Where the long term debt referred to in subsection (1) is to be repaid in a foreign currency, for the 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.
Fixed Assets
30 Transportation Plant
(1) This account shall include the company’s investment in plant used or held for use under a definite plan for pipeline operations. (See Regulations, sections 15 to 35).
(2) Where transportation plant is retired from service, this account shall be credited with the cost of the plant retired from service. (See Regulations, sections 36 to 44).
(3) Where the consideration given for transportation 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.
(4) The company shall furnish the Commission, at its request, with the particulars of the determination of the cash value of any consideration referred to in subsection (3).
(5) The balance in this account shall be classified according to Schedule II 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.
(6) The records referred to in subsection (5) shall show in detail the current debits and credits.
31 Accumulated Depreciation — Transportation Plant
(1) This account shall be credited with amounts of depreciation concurrently debited to account 414 (Depreciation) to cover the loss in service value of depreciable transportation plant, the cost of which is included in account 30 (Transportation Plant) or in account 38 (Transportation Plant Leased to Others).
(2) At the time of retirement of depreciable transportation plant, this account shall be credited with amounts recovered from salvage and insurance and debited with
(a) the cost of the plant retired; and
(b) the costs of removal, demolition or dismantling of the plant retired.
(3) Where, as a result of an extraordinary retirement, a material gain or loss is credited to account 402 (Extraordinary Income) or debited to account 422 (Extraordinary Income Deductions), this account shall be debited or credited, as applicable. (See Regulations, section 40).
(4) For general ledger and balance sheet purposes, this account shall be regarded and treated as a composite reserve but, for the purposes of analysis, the company shall maintain subsidiary records in which the accumulated depreciation 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.
(5) The records referred to in subsection (4) shall show in detail the current debits and credits.
(6) This account shall be subdivided as follows:
(a) Accumulated depreciation — Transportation plant; and
(b) Accumulated depreciation — Transportation plant leased to others.
32 Accumulated Amortization — Transportation Plant
(1) Where a company is authorized by the Commission to amortize amounts carried in Account 30 (Transportation Plant), or in Account 38 (Transportation Plant Leased to Others), this account shall be credited with amounts concurrently debited to Account 423 (Amortization). (See Regulations, sections 59 and 60).
(2) Where a change from depreciation accounting to amortization accounting is authorized by the Commission with respect to any group of plant accounts, plant account or group of assets within a plant account, the applicable balance in Account 31 (Accumulated Depreciation — Transportation Plant) shall be transferred to this account.
(3) When the final costs of retirement of amortizable transportation plant are established, this account shall be credited with amounts recovered from salvage and insurance and debited with
(a) the cost of the plant retired; and
(b) the costs of removal, demolition or dismantling of the plant retired.
(4) Where, as a result of an extraordinary retirement, a material gain or loss is credited to account 402 (Extraordinary Income) or debited to account 422 (Extraordinary Income Deductions), this account shall be debited or credited, as applicable. (See Regulations, section 40).
(5) Subsidiary records shall be maintained for each group of plant items under a separate amortization authorization.
(6) This account shall be subdivided as follows:
(a) Accumulated amortization — Transportation plant; and
(b) Accumulated amortization — Transportation plant leased to others.
33 Operating Oil Supply
This account shall include the value of oil owned by the company and used to maintain lines and storage tanks in condition for the transportation of commercial oil. (See Regulations, section 82).
34 Other Plant
(1) This account shall include investment in any installation or property that is entirely distinct from and not operated in connection with transportation plant.
(2) Where other plant is retired from service, this account shall be credited with the cost of the plant retired.
(3) The following is a representative list of items of other plant to be included: (See Regulations, section 14)
(a) commercial power plants;
(b) land and buildings not used in pipeline service;
(c) land and property acquired and held in anticipation of an indefinite future use;
(d) mineral and timber lands.
35 Accumulated Depreciation — Other Plant
(1) This account shall be credited with amounts of depreciation debited to account 412 (Other Expenses) to cover loss in service value of depreciable plant, the cost of which is included in account 34 (Other Plant).
(2) At the time of retirement of depreciable other plant, this account shall be credited with amounts recovered from salvage and insurance and debited with
(a) the cost of the plant retired; and
(b) the costs of removal, demolition or dismantling of the plant retired.
36 Improvements to Leased Facilities
(1) This account shall include the cost of improvements made to facilities leased from others, where the improvements are made for the purpose of oil 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 II.
(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 423 (Amortization) and concurrent credits to account 37 (Accumulated Amortization — Improvements to Leased Facilities).
(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 414 (Depreciation) and concurrent credits to account 31 (Accumulated Depreciation — Transportation Plant).
37 Accumulated Amortization — Improvements to Leased Facilities
This account shall be credited with amounts written off and concurrently debited to account 423 (Amortization) in respect of improvements to leased facilities, the cost of which is included in account 36 (Improvements to Leased Facilities).
38 Transportation Plant Leased to Others
(1) This account shall include the cost of transportation 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 II.
39 Transportation Plant Under Construction
(1) This account shall include the cost of construction of transportation plant not yet placed in service, including:
(a) the cost of land acquired for such construction;
(b) unapplied construction material and supplies;
(c) taxes during construction; and
(d) any other elements of construction cost.
(2) When any plant, the cost of construction of which has been included in this account, is placed in service, the cost of construction shall be credited to this account and debited to the appropriate descriptive plant accounts or to plant account 191 (Unclassified Plant in Service).
40 Accumulated Amortization — Other Plant
(1) Where there is a change from depreciation accounting to amortization accounting, the applicable balance in account 35 (Accumulated Depreciation — Other Plant) shall be transferred to this account.
(2) At the time of retirement of amortizable other plant, this account shall be credited with amounts recovered from salvage, including insurance proceeds and debited with
(a) the book cost of the plant retired; and
(b) the costs of removal, demolition or dismantling of the plant retired.
Deferred Debits
41 Unamortized Debt Discount and Expenses
(1) This account shall include the total of the debit 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 sections 72 or 73, as applicable.
42 Organization Expenses
(1) This account shall include
(a) all fees paid to governments for the privilege of incorporation;
(b) legal fees in respect of the incorporation of the company; and
(c) any expenditures incidental to organizing a company.
(2) Amounts recorded in this account shall be amortized or otherwise disposed of by a company in such manner as the Commission may approve or direct.
43 Public Improvements
(1) This account shall include
(a) the deferred portion of assessments by governmental authority (by mutual consent or otherwise) to cover the cost of constructing public improvements, where 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) Any amount that is no longer deferred shall be debited to account 630-16 or 730-16 (Taxes Other than Income Taxes), as applicable.
(3) Where, in any year, public improvements individually and in the aggregate are not material, they may, at the option of the company, be debited to account 630-16 or 730-16 (Taxes Other than Income Taxes), as applicable.
(4) The following is a representative list of items of public improvements to be included in the account: (See Regulations, section 14)
(a) cost of land outside a company’s right-of-way to provide for the relocation of street or highway;
(b) curbing street and highway;
(c) damage to property of others when incidental to highway construction;
(d) drainage system;
(e) engineering — when such costs apply to items chargeable to this account;
(f) flood protection;
(g) grading street and highway;
(h) guttering street and highway;
(i) irrigation system;
(j) levee;
(k) paving street and highway;
(l) sewer system;
(m) sidewalk;
(n) street lighting system; and
(o) water works.
44 Preliminary Survey and Investigation Costs
(1) This account shall be debited with
(a) all expenditures for preliminary surveys, plans, investigations and similar items made for the purpose of determining the feasibility of projects for oil pipeline service;
(b) the costs associated with applications for Certificates of Public Convenience and Necessity and Commission hearings; and
(c) the cost in respect of the acquisition of options to purchase land, land rights, easements and similar items for use in projects that are contemplated.
(2) Where, as a result of the expenditures referred to in subsection (1), 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 420 (Other Income Deductions), unless the amount is material, in which case the company shall inform the Regulator and, unless otherwise directed by the Commission, shall debit the amount to account 422 (Extraordinary Income Deductions).
(4) Records supporting entries in 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.
45 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; and
(c) items of a deferred nature, not provided for in other accounts under the Regulations, that are to be amortized over future periods.
Liabilities
Current Liabilities
50 Loans and Notes Payable
(1) This account shall include any balances representing the company’s outstanding obligations in the form of loans, notes or other similar evidences of indebtedness that are payable on demand or within 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.
51 Joint Revenue Payable
This account shall include the revenue from transportation of oil and oil products that is payable to other parties under a joint tariff, other than revenue recorded in account 53 (Accounts Payable — Affiliated Companies).
52 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 50 (Loans and Notes Payable), account 51 (Joint Revenue Payable), account 53 (Accounts Payable — Affiliated Companies), account 54 (Interest Payable and Accrued) or account 60 (Other Current Liabilities).
(2) This account shall also include a company’s estimated accrued liabilities with respect to accounts payable. (See Regulations, sections 77 and 78).
(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 60 (Other Current Liabilities) or account 78 (Other Deferred Credits), as applicable.
53 Accounts Payable — Affiliated Companies
This account shall include
(a) notes,
(b) advances,
(c) credit balances in open accounts,
(d) long term debt due within one year,
(e) joint revenue payable,
(f) interest on any matter referred to in paragraphs (a) to (e),
(g) dividends, and
(h) miscellaneous amounts
owed to an affiliated company and subject to settlement within one year from the date of the balance sheet.
54 Interest Payable and Accrued
This account shall be credited with interest, other than interest payable to affiliated companies, due or accrued on
(a) notes payable;
(b) bank overdrafts and loans; and
(c) long term debt and other obligations.
55 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 53.
56 Taxes Accrued
(1) This account shall be credited with the accruals of all taxes that are 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 are adjusted to reflect in this account at all times a company’s estimate of 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.
57 Long Term Debt Due Within One Year
This account shall include
(a) the amount of long term debt and any premiums thereon that 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 the portion of any liability to be recorded in account 53 (Accounts Payable — Affiliated Companies).
60 Other Current Liabilities
This account shall include
(a) contractors’ holdbacks and all other current liabilities not provided for in other accounts under the Regulations; and
(b) the company’s estimate of current liabilities in respect of
(i) injuries to persons, and
(ii) loss and damage claims.
Deferred Credits and Appropriations
70 Welfare and Pension Appropriations
(1) This account shall include
(a) the credit balances that represent the liability of the company for any amount contributed by employees and by the company, through debits to expenses or other accounts approved for the purpose by the Commission, for
(i) pensions,
(ii) accidents 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 Regulations, section 62 and account 23 (Miscellaneous Special Funds)); and
(b) the credit balances representing the liability of the company for amounts provided by debits to expenses in respect of deferred compensation payments under an employees’ profit sharing plan.
(2) Separate subaccounts shall be maintained for each kind of appropriation created pursuant to subsection (1).
(3) Disbursements shall be debited to this account and any excess of the disbursements over the amounts appropriated shall be transferred to account 630-13 or 730-13 (Employee Benefits) or to account 630-11 or 730-11 (Injuries to Persons and Property Damage), as applicable.
(4) Current amounts payable relative to funded welfare, pension and other plans with insurance companies or trustees shall be transferred to account 52 (Accounts Payable and Accrued).
71 Accumulated Tax Reductions Applicable to Future Years
(1) Where a company does not follow the taxes payable or flow-through basis of accounting for income taxes, this account shall include the amount by which a company’s provision for income taxes for a particular year differs from the amount of income taxes payable for that year.
(2) Where a company does not follow the method of accounting for accumulated tax reductions applicable to future years, the company shall show the amount of its accumulated tax reductions in its annual financial report to Statistics Canada pursuant to the Statistics Act.
72 Insurance Appropriations
(1) This account shall include the credit balances that represent insurance appropriations concurrently debited to expenses to cover self-insurance against losses through accident, fire, flood, burglary or other hazards and re-insurance recoveries from insurance companies. (See Regulations, sections 61 and 62).
(2) To the extent that a loss or damage sustained is covered by this account, the amount of that loss or damage shall be debited to this account.
(3) Separate subaccounts shall be maintained for each kind of insurance reserve created.
73 Maintenance Expense Equalization
This account shall include the differences between actual and budgeted monthly maintenance expenses. (See Regulations, section 47).
74 Allowance for Loss in Value of Investments
(1) This account shall include all the credit balances maintained by a company where the credit balances represent reductions in the gross book value of investments carried in account 20 (Investments in Affiliated Companies) and account 21 (Other Investments). (See account 415 (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 accounts 20 or 21 shall be made only after approval of the Commission. (See account 404 (Investment Valuation Adjustment)).
75 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 4 (Accounts Receivable — Trade),
(b) account 5 (Accounts Receivable — Other),
(c) account 6 (Accounts Receivable — Affiliated Companies), or
(d) account 12 (Other Current Assets),
and the corresponding debits shall be made to accounts 630-15 or 730-15 (Bad Debts), as applicable.
(2) Collections on accounts that were previously debited to this account shall be credited to this account.
76 Unamortized Premium On Long Term Debt
(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. (See Regulations, section 71).
(2) The amounts recorded in this account shall be amortized in accordance with sections 72 or 73 of the Regulations, as applicable.
78 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; and
(c) credit items of a deferred nature, not provided for in other accounts under the Regulations, that are to be amortized over future periods.
Long Term Liabilities
80 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 the debt is issued and not retired or cancelled; and
(b) the total par value of any unmatured debt similar to the debt referred to in paragraph (a) of any other company, the payment of which 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 the company’s 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 the company’s 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 that are secured by lien on physical property and not included in any other subdivisions of this account;
(b) collateral trust bonds — bonds and notes that are 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 payment 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 obligations that mature 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 the purchaser holds them free from all control by the accounting company.
(6) All long term debt securities that are issued, 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.
85 Advances from Affiliated Companies
(1) This account shall include
(a) the par value of bonds, debentures, and long term notes payable,
(b) the par value of non-negotiable notes,
(c) the par value of matured long term bonds, debentures or notes payable where,
(i) the bonds, debentures or notes of the company are held by an affiliated company,
(ii) there is no agreement for an extension as to time of payment, and
(iii) 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 matter referred to in paragraphs (a) to (d)
owed to an affiliated company and not subject to settlement within one year from the date of the balance sheet.
(2) Separate subaccounts shall be kept for each of the items listed in subsection (1). (See Regulations, section 80).
86 Other Long Term Debt
This account shall include amounts payable more than one year from the date of the balance sheet if such amounts have not been provided for elsewhere and loans payable authorized by subsection 76(2) of the Regulations.
Capital Stock and Surplus
90 Capital Stock
(1) This account shall include
(a) the total par value of par value stock, and
(b) the total amount received from the issuance of stock without par value, excluding amounts that have been properly allocated to account 91 (Contributed Surplus),
if the stock has been issued to bona fide purchasers and has not been reacquired and cancelled, and
(c) appropriations of retained earnings that have been transferred to this account.
(2) Premiums received from the issue of par value stock shall be credited to account 91 (Contributed Surplus).
(3) Where capital stock is reduced or cancelled, this account shall be debited with the appropriate amount applicable to the particular series or class of stock involved.
(4) Where capital stock having par value is exchanged for capital stock without par value, any amounts with respect thereto in account 91 (Contributed Surplus) shall be transferred to this account.
(5) This account shall be subdivided in a manner that shows the total amount credited to this account with respect to each series or class of stock issued and outstanding and carrying different conditions.
(6) An appropriate record shall be maintained showing the number of shares issued and outstanding for each series or class referred to in subsection (5).
91 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) The following is a representative list of items of contributed surplus to be included in this account: (See Regulations, section 14)
(a) premiums received on the issue of par value shares;
(b) proceeds from the sale of donated shares;
(c) credits resulting from 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 the proceeds from the issue of no par value shares that has been properly allocated to this account; and
(f) capital contributions in the form of subsidies, building sites and other such contributions.
92 Retained Earnings
This account shall include the balance, debit or credit, of the amounts included in the Retained Earnings accounts listed in Schedule III.
93 Excess of Appraised Value of Fixed Assets Over Depreciated Cost
(1) This account shall be credited with the increase in value of fixed assets of the company 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 crediting of this account in the manner referred to in subsection (1) and the disposition of any amounts included therein shall be subject to the prior approval of the Commission.
- SOR/2020-50, s. 3
- SOR/2020-50, s. 5
- Date modified: