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Gas Pipeline Uniform Accounting Regulations

Version of section 40 from 2006-03-22 to 2020-03-15:

  •  (1) In respect of depreciable plant, extraordinary retirement means a retirement of depreciable plant that results from causes that could not reasonably have been anticipated or contemplated in previously making provision for depreciation or amortization, including such causes as fire, storm, flood, premature obsolescence or unexpected and permanent shutdown of an entire operating assembly for reasons other than ordinary wear and tear.

  • (2) Where the gain or loss on an extraordinary retirement is material, the company shall inform the Board and shall transfer the amount of the gain or loss from account 105 (Accumulated Depreciation-Gas Plant) or account 106 (Accumulated Amortization-Gas Plant) to account 331 (Extraordinary Income) or account 341 (Extraordinary Income Deductions), as applicable.

  • (3) Notwithstanding subsection (2), a company may, with the approval of the Board, transfer all or part of the amount of a material gain or loss on an extraordinary retirement to account 279 (Other Deferred Credits) or account 171 (Extraordinary Plant Losses), as applicable, for amortization at a rate approved by the Board.

  • (4) Immaterial gains or losses resulting from extraordinary retirements shall be accounted for in the same way as ordinary retirements.

  • SOR/86-998, s. 9

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