Gas Pipeline Uniform Accounting Regulations

63 (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.