Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Gas Pipeline Uniform Accounting Regulations (SOR/83-190)

Regulations are current to 2020-09-09 and last amended on 2020-03-16. Previous Versions

Account Grouping (continued)

Income Accounts

  •  (1) Income accounts, set out in Schedule II as account series 300 to 341, shall show a summary of a company’s revenue, expenses and extraordinary items.

  • (2) A company shall inform the Regulator of all extraordinary items and shall record them in account 331 (Extraordinary Income) or account 341 (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 item means material gain or loss that is not typical of a company’s normal business activities, is not expected to occur regularly over a period of years and would not be considered a recurring factor in any evaluation of the ordinary operating process of the company.

  • SOR/86-998, s. 4
  • SOR/2020-50, s. 12
  • SOR/2020-50, s. 13(F)

Retained Earnings Accounts

 Retained earnings accounts, set out in Schedule III as account series 350 to 357, shall show a summary of all changes in balance sheet account 212 (Retained Earnings) for each year and shall include

  • (a) the balance transferred from income for the year;

  • (b) prior period adjustments;

  • (c) miscellaneous retained earnings adjustments;

  • (d) dividend appropriations; and

  • (e) income tax applicable to retained earnings adjustments.

  • SOR/86-998, s. 5(F)

Plant Accounts

  •  (1) Plant accounts, set out in Schedule IV as account series 401 to 498, are subsidiary to balance sheet accounts 100 (Gas Plant in Service), 101 (Gas Plant Leased to Others), 102 (Gas Plant Held for Future Use) and 107 (Improvement to Facilities Leased from Others), and shall be used to classify a company’s plant.

  • (2) Plant accounts shall be supported by subsidiary accounts that record the costs, by location, of

    • (a) each major facility including each main gathering system, products extraction plant, gas storage facility, compressor station and main pipeline; and

    • (b) any other facility that is separately located.

  • (3) Plant accounts shall be maintained to record separately expenditures for each plant addition, replacement and retirement authorized by the Commission.

  • (4) Any installation or property not used in pipeline operations shall be recorded in balance sheet account 110 (Other Plant).

  • SOR/2020-50, s. 11
  • SOR/2020-50, s. 13(F)

Operating Revenue Accounts

 Operating revenue accounts, set out in Schedule V as account series 500 to 579, shall be used to classify all revenue of a company from pipeline operations.

  • SOR/2020-50, s. 13(F)

Operating and Maintenance Expense Accounts

  •  (1) Operating expense accounts, set out in Schedule VI as account series 610 to 729, shall include records of a company’s operating expenses pertaining to pipeline operations.

  • (2) Maintenance expense accounts, set out in Schedule VII as accounts series 810 to 889, shall include records of a company’s maintenance expenses pertaining to pipeline operations.

  • (3) The operating and maintenance expenses referred to in subsections (1) and (2) shall be recorded in the appropriate account under the applicable service function referred to in Schedule VI and VII.

  • (4) The service functions referred to in subsection (3) are

    • (a) gathering;

    • (b) products extraction;

    • (c) gas supply (operating only);

    • (d) underground storage;

    • (e) transmission;

    • (f) general; and

    • (g) administrative and general (operating only).

  • (5) Expenses common to more than one operating or maintenance expense account shall, where practicable, be equitably apportioned between such accounts and adequate records showing the basis of such apportionment shall be maintained.

  • (6) The operating and maintenance expense accounts under the service functions listed in paragraphs (4)(a) to (f) shall be supported by subsidiary accounts that record the expenses, by location as practicable for each major facility such as each main gathering system, products extraction plant, gas storage facility, compressor station, main pipeline system and any other facility that is separately located.

  • SOR/86-998, s. 6(E)
  • SOR/2020-50, s. 13(F)

Clearing Accounts

  •  (1) Where it is not possible to record expenditures directly to a particular expense or plant account, a company may maintain clearing accounts for recording the expenditures.

  • (2) Amounts recorded in clearing accounts shall be regularly distributed to the appropriate expense or plant accounts on an equitable basis.

  • (3) Any balances in the clearing accounts shall be substantially distributed before the end of each fiscal year unless items held therein relate to a future period.

  • (4) The net monthly balance in clearing accounts shall be included in account 179 (Other Deferred Debits) or account 279 (Other Deferred Credits), as applicable.

  • (5) Where an operator maintains clearing accounts for the purpose of distributing monthly balances to the beneficial owners of a pipeline, the accounts shall contain sufficient particulars to permit ready identification and reconciliation with the accounts of the beneficial owners.

  • SOR/2020-50, s. 13(F)

Interpretation of Lists of Items

  •  (1) An item that appears in a representative list in any account in the schedules shall be included in the corresponding account of a company if the inclusion of the item is consistent with the text of the account.

  • (2) A representative list shall be considered only as representative and not as excluding from an account any analogous component or item that is omitted from the list.

  • SOR/2020-50, s. 13(F)

Plant Acquired or Constructed

General

  •  (1) A company shall record in the plant accounts the costs incurred to acquire or construct any plant.

  • (2) Where the consideration given for plant referred to in subsection (1) is other than money, the money value of the consideration on the day the contract for the acquisition or construction comes into force shall be debited to the applicable accounts and a record of the consideration, in sufficient detail to identify it, shall be retained by the company.

  • (3) Where a company purchases all or part of the existing facilities of another company, the purchasing company shall prepare and submit to the Commission for approval details of the proposed method of accounting for such purchase together with the company’s reasons for the proposed method of accounting.

  • (4) Where the facilities referred to in subsection (3) are purchased from an affiliated company, the original cost of the facilities to the affiliated company and the accumulated depreciation applicable to the facilities to the date of purchase, as shown in the accounts of the affiliated company, shall be recorded in the accounts of the purchasing company.

  • (5) Balance sheet account 115 (Gas Plant Under Construction) shall be supported by subsidiary records that record separately each transaction for each project involving plant additions, replacements or relocations.

  • (6) Where a plant acquired by a company is constructed by or for that company, the costs to be recorded in the plant accounts shall include the elements of cost set out in sections 16 to 27 and section 29.

  • SOR/2020-50, s. 11
  • SOR/2020-50, s. 13(F)

Cost of Labour

  •  (1) Cost of labour for construction of plant shall include the amount paid for labour, including employee benefits, performed by the company’s employees.

  • (2) Where the employees referred to in subsection (1) are specially assigned to construction work, their pay while so engaged shall be included in the cost of the work.

  • (3) No charge shall be made to plant accounts for the pay of the company’s employees whose services in connection with construction are merely incidental, except as provided in section 26.

  • (4) The allocation of travelling and other incidental expenses of the company’s employees shall be made to accounts on the same basis as the distribution of the pay of those employees.

  • SOR/2020-50, s. 13(F)

Cost of Materials and Supplies

  •  (1) Cost of materials and supplies shall include the purchase price of materials and supplies at the point of free delivery, the cost of ad valorem taxes, inspection, transportation and, where appropriate, a suitable proportion of store expenses.

  • (2) In determining the cost of materials and supplies, suitable allowance shall be made for all discounts allowed and realized on the purchase thereof.

  • (3) In debiting the plant accounts with materials and supplies used, allowance shall be made for the value of

    • (a) unused portions and other salvage;

    • (b) the materials recovered from temporary pipe, scaffolding and other temporary structures used in construction; and

    • (c) small tools recovered and usable for other purposes.

 
Date modified: