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

Regulations are current to 2021-02-15 and last amended on 2020-03-16. Previous Versions

Depreciation (continued)

Rates of Depreciation (continued)

  •  (1) As soon as the information can be assembled, a company shall file with the Regulator depreciation rates estimated to be appropriate for each group of plant accounts, each plant account or each group of assets within a plant account.

  • (2) The rates referred to in subsection (1) shall be based on the service value and estimated service life of plant, as developed by a study of the company’s history and experience and such engineering and other information as may be available with respect to future operating conditions.

  • (3) The rates referred to in subsection (1) shall be established to produce a charge for depreciation equal to the sum of the amounts that would otherwise be chargeable as depreciation for each of the various classes of plant included in a group of plant accounts, for each plant account or for each group of assets within a plant account.

  • (4) The rates referred to in subsection (1) may be developed by a company by the method deemed most appropriate for the portrayal of the depreciation experienced and, when filed, shall be accompanied by a statement showing their basis and the methods employed in their computation.

  • (5) A company shall, at any time, upon direction of the Commission, conduct a study on the suitability of depreciation rates in use in the light of the company’s history and available engineering data, and shall submit to the Commission for approval a report of the results of such study together with recommendations for any desired changes in depreciation rates.

  • SOR/2020-50, s. 11
  • SOR/2020-50, s. 12
  • SOR/2020-50, s. 13(F)
  •  (1) Where, in the opinion of a company, depreciation rates that have been filed with the Regulator are no longer applicable, the company shall file revised rates with the Commission for approval.

  • (2) Where a company acquires plant for which no depreciation rates have been approved by the Commission, the company shall immediately compile and submit to the Regulator its estimate of the appropriate depreciation rates, developed in accordance with the provisions of sections 53 and 54.

  • SOR/2020-50, s. 7

Accumulated Depreciation

  •  (1) Accumulated depreciation shall be subdivided to show separately the amount applicable to

    • (a) each group of plant accounts,

    • (b) each plant account, or

    • (c) each group of assets within a plant account,

    for which a separate weighted average rate of depreciation has been established.

  • (2) Where the amount is material, accumulated depreciation applicable to the assets in one depreciation group shall not be transferred by a company to another depreciation group without the approval of the Commission.

  • SOR/2020-50, s. 11

Plant Records

 A company shall keep records of depreciable plant and plant retirements in sufficient detail to show the service life of plant that has been retired and to permit the service life of plant to be estimated by the use of the mortality method or other appropriate method.

  • SOR/2020-50, s. 13(F)


 For the purposes of sections 59 and 60, amortization means the gradual recovery of an amount included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others), account 102 (Gas Plant Held for Future Use) or account 110 (Other Plant) by distributing such amount over a fixed period or over the estimated remaining life of the plant.

 Where it is anticipated by a company that plant will be abandoned owing to the exhaustion of a particular source of traffic, obsolescence or any other cause, the company shall not change from depreciation accounting to amortization accounting without first obtaining the authorization of the Commission.

  • SOR/2020-50, s. 11
  • SOR/2020-50, s. 13(F)
  •  (1) The monthly debits for amortization of gas plant included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use) shall be debited to account 304 (Amortization).

  • (2) Amortization on assets included in account 110 (Other Plant) shall be debited to account 311 (Expense of Other Plant).


  •  (1) Insurance premiums paid to insurance companies shall be debited to account 723 (Insurance), unless the premiums are chargeable to clearing accounts or relate to

    • (a) the construction of pipeline facilities; or

    • (b) employee benefits.

  • (2) Insurance costs relative to the construction of pipeline facilities shall be debited pro rata to the appropriate plant accounts.

  • (3) Insurance costs relative to employee benefits shall be debited to account 725 (Employee Benefits).

  • (4) Any amount recovered from the insurance referred to in subsection (1), (2) or (3) shall be credited to the account or accounts originally debited with the related loss or expense.

  • (5) Where a company elects to create and maintain reserves for self-insurance, account 723 (Insurance) shall be debited with estimated amounts in lieu of commercial insurance premiums, and account 290 (Insurance Appropriations) shall be credited with the estimated amounts.

  • (6) A schedule of risks covered by self-insurance shall be kept showing the character of the risk covered and the rates used to compute estimated amounts referred to in subsection (5).

  • (7) The rates referred to in subsection (6) shall not exceed commercial rates for the same protection.

  • (8) Where, as a result of an event or accident covered by self-insurance, costs are incurred of a type that would normally be debited to an expense account, such costs shall be debited to the insurance appropriations account and any excess of the expenditure over the applicable self-insurance shall be debited to the appropriate expense account.

  • (9) Where the self-insurance schedule referred to in subsection (6) covers the retirement of plant, the accounting for the retirement shall be as outlined in section 36 and the self-insurance applicable to the retired item shall be transferred from account 290 (Insurance Appropriations) to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable.

  • (10) Where a company insures with a commercial insurance company any risks covered by self-insurance, the premiums for the insurance policy shall be debited to the insurance appropriations account and any recoveries under the policies shall be credited thereto.

  • SOR/86-998, s. 14(E)
  • SOR/2020-50, s. 13(F)

Funds and Appropriations

  •  (1) Cash, securities or other assets set aside for a specific purpose shall be debited to account 122 (Sinking Funds), account 123 (Miscellaneous Special Funds) or account 131 (Special Deposits), as applicable, and the appropriate asset account shall be credited.

  • (2) Income from assets held in account 122 (Sinking Funds) and account 123 (Miscellaneous Special Funds) shall be credited to account 316 (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 123 (Miscellaneous Special Funds), and represents a company’s contribution to account 291 (Welfare and Pension Appropriations) or to account 290 (Insurance Appropriations), the company shall concurrently debit account 329 (Other Income Deductions) and credit account 291 or 290, as applicable, with the amount transferred.

  • (5) A company’s contribution to account 291 (Welfare and Pension Appropriations) or to account 290 (Insurance Appropriations) shall be provided by debits to expenses.

  • (6) Where the gain or loss on the sale of assets recorded in account 122 (Sinking Funds) or account 123 (Miscellaneous Special Funds) is material, the company shall inform the Regulator and shall transfer the gain or loss to account 331 (Extraordinary Income) or account 341 (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 316 (Income from Sinking and Other Funds) or account 329 (Other Income Deductions), as applicable.

  • SOR/86-998, s. 15
  • SOR/2020-50, s. 12
  • SOR/2020-50, s. 13(F)

Securities Owned


  •  (1) In this section and sections 64 to 68, cost means the amount of money paid by a company to acquire securities or, where the consideration paid for the securities is other than money, the money value of the consideration at the time the securities are acquired.

  • (2) A company shall record the cost of its investment in securities, excluding amounts paid for accrued interest and accrued dividends, in the appropriate accounts at the time of acquisition of the securities.

  • (3) [Revoked, SOR/86-998, s. 16]

  • (4) Where securities having a fixed maturity date and recorded in account 132 (Temporary Cash Investments), account 120 (Investments in Affiliated Companies), account 121 (Other Investments), account 122 (Sinking Funds) or account 123 (Miscellaneous Special Funds) are purchased at a discount or premium, that discount or premium may be amortized over the remaining life of the securities by periodic debits or credits to the account in which the cost of the securities is recorded, with corresponding credits or debits to account 314 (Income from Investments), account 315 (Income from Affiliated Companies) or account 316 (Income from Sinking and Other Funds), as applicable, and if the amount to be amortized does not exceed $1,000, a company may write off the total discount or premium at one time.

  • (5) No amortization entries shall be recorded in respect of discounts on securities held as investments unless there is reason to believe that the securities will be disposed of at a sum equal to their par value, or that the par value will be collected at maturity.

  • SOR/86-998, s. 16
  • SOR/2020-50, s. 13(F)
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