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

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

Securities Owned (continued)

Temporary Cash Investments

  •  (1) Where the gain or loss on the sale of assets recorded in account 132 (Temporary Cash Investments) is material, the company shall inform the Regulator and shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.

  • (2) A gain or loss on a sale referred to in subsection (1) that is not material shall be transferred to account 314 (Income from Investments).

  • SOR/86-998, s. 17
  • SOR/2020-50, s. 12
  • SOR/2020-50, s. 13(F)
  •  (1) Where the amount required to provide for reductions in the market value of temporary cash investments is material, the company shall inform the Regulator and shall debit the amount required to account 341 (Extraordinary Income Deductions) and concurrently credit account 132 (Temporary Cash Investments).

  • (2) Where the amount required to provide for reductions in the market value of temporary cash investments is not material, it shall be debited to account 314 (Income from Investments) and concurrently credited to account 132 (Temporary Cash Investments).

  • SOR/86-998, s. 18
  • SOR/2020-50, s. 12
  • SOR/2020-50, s. 13(F)

Investments in Affiliated Companies and Other Investments

[SOR/2020-50, s. 13(F)]
  •  (1) Where the gain or loss on the sale of assets recorded in account 120 (Investments in Affiliated Companies) or account 121 (Other Investments) is material, the company shall inform the Regulator and shall transfer the amount of the gain or loss to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.

  • (2) A gain or loss on a sale referred to in subsection (1) that is not material shall be transferred to account 319 (Other Income) or to account 329 (Other Income Deductions), as applicable.

  • SOR/86-998, s. 19
  • SOR/2020-50, s. 12
  • SOR/2020-50, s. 13(F)
  •  (1) A company shall be governed by recognized accounting principles in reducing the value at which securities are recorded in account 120 (Investment in Affiliated Companies) or account 121 (Other Investments) to reflect anticipated loss in value.

  • (2) Permanent impairment of the value of securities referred to in subsection (1) shall be recorded in the accounts but fluctuations in market value shall not be recorded.

  • (3) Where a reduction in the value of securities referred to in subsection (1) is material, the company shall inform the Regulator and shall debit the amount of the reduction to account 341 (Extraordinary Income Deductions).

  • (4) Where a reduction in the value of securities referred to in subsection (1) is not material, the company shall debit the amount of the reduction to account 326 (Provision for Loss in Valuation of Investments).

  • SOR/86-998, s. 20
  • SOR/2020-50, s. 12
  • SOR/2020-50, s. 13(F)
  •  (1) Subject to the approval of the Commission, a company may write down its investment in a separately incorporated company controlled by the company to reflect the company’s share of the losses of the separately incorporated company, where the operation of such a company is considered to be an integral part of the company’s gas transportation system.

  • (2) A company shall credit the amount of a write-down referred to in subsection (1) to account 126 (Allowance for Loss in Value of Investments) and debit that amount to account 326 (Provision for Loss in Valuation of Investments) unless the amount of the write-down is material, in which case it shall be debited to account 341 (Extraordinary Income Deductions).

  • (3) Subject to the approval of the Commission, where a company provides for a loss in accordance with this section and the separately incorporated company makes a profit in a subsequent year, the controlling company shall adjust the allowance for losses recorded in account 126 (Allowance for Loss in Value of Investments) by debiting the amount of the profit to that account and concurrently crediting account 326 (Provision for Loss in Valuation of Investments) unless the profit is material, in which case it shall be credited to account 331 (Extraordinary Income).

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

Securities Issued

General

  •  (1) In sections 70 to 74,

    discount

    discount means the excess of the par or stated value of any security issued or resold over the value of the consideration received for the security; (escompte)

    expense

    expense includes

    • (a) any commission paid for marketing equity and debt securities,

    • (b) the cost of preparing and distributing prospectuses,

    • (c) the cost of preparing certificates and other similar documents, and

    • (d) legal fees in respect of the issuance of securities; (dépenses)

    premium

    premium means the excess value of the consideration received from the issue or resale of securities over the par or stated value of the securities. (prime)

  • (2) Where a prospectus includes the issuance of long-term debt and capital stock, the items of expense that are distinguishable as to debt or stock shall be segregated and the remaining expenses shall be apportioned by using the ratio that the proceeds of long-term debt or capital stock bear to the total proceeds.

  • (3) Separate ledger accounts shall be maintained for each class or subclass of securities.

Share Capital

  •  (1) Premiums received on the issuance of par value shares shall be credited to account 210 (Contributed Surplus).

  • (2) The cost of issuing shares shall be debited to account 177 (Share Capital Expense) and subsequent costs of issuing shares shall be debited to account 728 (Other General Expense).

  • (3) [Revoked, SOR/86-998, s. 21]

  • SOR/86-998, s. 21

Long-term Debt

  •  (1) The total discount and expense or the total premium less expense, as the case may be, associated with each series of each class of long-term debt shall be recorded in a separate subaccount of account 170 (Unamortized Debt Discount and Expense) or account 270 (Unamortized Debt Premium and Expense).

  • (2) All the debit balances in the subaccounts referred to in subsection (1) shall be considered as part of the balance in account 170 (Unamortized Debt Discount and Expense).

  • (3) All the credit balances in the subaccounts referred to in subsection (1) shall be considered as part of the balance in account 270 (Unamortized Debt Premium and Expense).

  • (4) Where the total discount and expense or the total premium less expense applicable to any particular issue of securities does not exceed $25,000, a company, at the time of issue, may debit the entire amount to account 321 (Amortization of Debt Discount, Premium and Expense), as applicable.

  • SOR/2020-50, s. 13(F)

 In each fiscal period of a company, there shall be debited to account 321 (Amortization of Debt Discount, Premium and Expense), and credited to account 170 (Unamortized Debt Discount and Expense), a portion of each of the debit balances included in account 170 and the calculation of that portion shall be based on the ratio of the fiscal period to the remaining life of the respective securities, calculated from the beginning of the fiscal period to the date of maturity of the debt to which the charges relate, and correspondingly there shall be credited to account 321 (Amortization of Debt Discount, Premium and Expense) and debited to account 270 (Unamortized Debt Premium and Expense), a similar portion of each of the credit balances included in account 270.

  • SOR/2020-50, s. 13(F)
  •  (1) Where any issue or series of long-term debt of a company is redeemed before its maturity date, otherwise than by exchange or conversion into shares, the amount of the unamortized debt discount and expense or unamortized premium less expense applicable to the portion of the debt redeemed shall be credited to account 170 (Unamortized Debt Discount and Expense) or debited to account 270 (Unamortized Debt Premium and Expense), as applicable, and where the amount is not material, concurrently debited or credited to account 321 (Amortization of Debt Discount, Premium and Expense) as applicable, in the year of redemption.

  • (2) Where the amount referred to in subsection (1) is material, the company shall inform the Regulator and shall debit the amount to account 341 (Extraordinary Income Deductions) or credit the amount to account 331 (Extraordinary Income), as applicable.

  • (3) Notwithstanding subsections (1) and (2), where an issue or series of long-term debt of a company is redeemed before its maturity date by refunding through the issuance of new long-term debt, the company may, where the amount is not material, amortize the amount of unamortized discount and expense or unamortized premium less expense applicable to the portion of the debt redeemed, by regular debits or credits as applicable, to account 321 over a period not exceeding the lesser of the remainder of the original life of the issue or series redeemed or the life of the new long-term debt.

  • (4) Where the amount referred to in subsection (3) is material, the company shall inform the Regulator and shall debit the amount to account 341 (Extraordinary Income Deductions), or credit the amount to account 331 (Extraordinary Income), as applicable.

  • (5) Where an issue or series of long-term debt of a company is redeemed before its maturity date by exchange for or conversion into capital stock of the company, the manner of accounting for the transaction shall be subject to the prior approval of the Commission.

  • SOR/86-998, s. 22
  • SOR/2020-50, s. 11
  • SOR/2020-50, s. 12
  • SOR/2020-50, s. 13(F)
 
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