Gas Pipeline Uniform Accounting Regulations

52 (1) There shall be debited each month to expenses or other appropriate accounts and credited to the accounts for accumulated depreciation amounts that will allocate, in a systematic and rational manner, the service value of plant over its estimated service life.

(2) Monthly depreciation charges under the straight line method shall be computed by

• (a) applying the annual percentage rate of depreciation to the depreciation base as of the first of each month and dividing the result by 12; or

• (b) with the prior approval of the Board, applying the annual percentage rate of depreciation to the depreciation base at the beginning of the company fiscal year and dividing the result by 12.

(3) Monthly depreciation charges under the use or unit of production method shall be computed by applying the appropriate rate or use or production per unit for the year to the number of units of use or production for the month.

(4) Monthly depreciation charges under the diminishing value method shall be computed by applying the annual percentage rate to the depreciation base as of the first of each month and dividing the result by 12.

(5) A company shall compute depreciation in accordance with subsection 28(1).

(6) The monthly debits for depreciation of 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 303 (Depreciation).

(7) Depreciation on assets included in account 110 (Other Plant) shall be debited to account 311 (Expense of Other Plant).