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Gas Pipeline Uniform Accounting Regulations

Version of the schedule from 2006-03-22 to 2020-03-15:


SCHEDULE I(ss. 6, 7 and 14)

Index of Accounts

Balance Sheet Accounts

Assets

Plant

  • 100 
    Gas Plant in Service
  • 101 
    Gas Plant Leased to Others
  • 102 
    Gas Plant Held for Future Use
  • 103 
    Retirement Work in Progress
  • 105 
    Accumulated Depreciation — Gas Plant
  • 106 
    Accumulated Amortization — Gas Plant
  • 107 
    Improvements to Facilities Leased from Others
  • 110 
    Other Plant
  • 111 
    Accumulated Depreciation — Other Plant
  • 112 
    Accumulated Amortization — Other Plant
  • 115 
    Gas Plant Under Construction
  • 116 
    Other Plant Under Construction

Investments

  • 120 
    Investments in Affiliated Companies
  • 121 
    Other Investments
  • 122 
    Sinking Funds
  • 123 
    Miscellaneous Special Funds
  • 126 
    Allowance for Loss in Value of Investments

Current

  • 130 
    Cash
  • 131 
    Special Deposits
  • 132 
    Temporary Cash Investments
  • 140 
    Accounts Receivable — Trade
  • 141 
    Accounts Receivable — Other
  • 142 
    Accounts Receivable — Affiliated Companies
  • 145 
    Allowance for Doubtful Accounts
  • 147 
    Interest and Dividends Receivable
  • 150 
    Plant Materials and Operating Supplies
  • 151 
    Other Material and Supplies
  • 152 
    Gas Stored Underground — Available for Sale
  • 153 
    Transmission Line Pack Gas
  • 160 
    Prepayments
  • 162 
    Other Current Assets

Deferred Debits

  • 170 
    Unamortized Debt Discount and Expense
  • 171 
    Extraordinary Plant Losses
  • 172 
    Preliminary Survey and Investigation Charges
  • 173 
    Other Work in Progress
  • 176 
    Public Improvements
  • 177 
    Share Capital Expense
  • 178 
    Organization Expense
  • 179 
    Other Deferred Debits
Liabilities

Shareholders’ Equity

  • 200 
    Share Capital
  • 210 
    Contributed Surplus
  • 212 
    Retained Earnings
  • 216 
    Excess of Appraised Value of Plant Over Depreciated Cost

Long-term Debt

  • 220 
    Long-term Debt
  • 221 
    Company Long-term Debt Owned
  • 248 
    Advances from Affiliated Companies
  • 249 
    Other Long-term Debt

Current

  • 250 
    Loans and Notes Payable
  • 251 
    Accounts Payable and Accrued
  • 252 
    Accounts Payable — Affiliated Companies
  • 253 
    Dividends Payable
  • 254 
    Customers’ Security Deposits
  • 256 
    Taxes Accrued
  • 257 
    Interest Payable and Accrued
  • 258 
    Long-term Debt Due Within One Year
  • 259 
    Other Current Liabilities

Deferred Credits

  • 270 
    Unamortized Debt Premium and Expense
  • 275 
    Gas Cost and Maintenance Equalization
  • 276 
    Accumulated Deferred Income Taxes
  • 278 
    Contributions and Grants
  • 279 
    Other Deferred Credits

Appropriations

  • 290 
    Insurance Appropriations
  • 291 
    Welfare and Pension Appropriations
  • 293 
    Other Appropriations

Text Pertaining to Balance Sheet Accounts

Assets
  • 100 
    Gas Plant in Service
    • (1) This account shall include a company’s investment in plant, property and equipment used in gas pipeline service other than that included in account 101 (Gas Plant Leased to Others), account 102 (Gas Plant Held for Future Use) and account 107 (Improvements to Facilities Leased from Others).

    • (2) The balance in this account shall be classified according to Schedule IV and shall be supported by subsidiary records in which the plant is subdivided into component parts corresponding to

      • (a) each group of plant accounts;

      • (b) each plant account; or

      • (c) each asset or group of assets within a plant account.

    • (3) The records referred to in subsection (2) shall show in detail the current debits and credits.

    • (4) Where the consideration given for plant is other than cash, the value of such consideration shall be determined on a cash basis and the entry recording such transaction shall describe the actual consideration with sufficient particularity to identify it.

    • (5) The company shall furnish the Board at its request with the particulars of the determination of the cash value of any consideration referred to in subsection (4).

  • 101 
    Gas Plant Leased to Others
    • (1) This account shall include the cost of gas plant owned but leased to others as operating units or systems, where the lessee has exclusive possession.

    • (2) The balance in this account shall be classified according to Schedule IV.

  • 102 
    Gas Plant Held for Future Use
    • (1) This account shall include the investment in plant, property and equipment in existence at the date of the balance sheet and held for future use under a definite plan for gas pipeline operations.

    • (2) The balance in this account shall be classified according to Schedule IV.

  • 103 
    Retirement Work in Progress
    • (1) When plant included in accounts 100, 101, 102 and 107 is retired, this account shall be debited with

      • (a) the book cost of the plant retired, and

      • (b) the costs of removal, demolition and dismantling of plant,

      and the account shall be credited with amounts recovered from salvage, including insurance proceeds.

    • (2) When final costs of each retirement are established, the book cost and the costs of removal less amounts recovered shall be transferred to account 105 (Accumulated Depreciation — Gas Plant) or account 106 (Accumulated Amortization — Gas Plant), as applicable.

  • 105 
    Accumulated Depreciation — Gas Plant
    • (1) This account shall be credited with amounts of depreciation concurrently debited to account 303 (Depreciation) to cover the loss in service value of depreciable gas plant, the cost of which is included in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use).

    • (2) Where applicable, this account shall be credited with the depreciation of amounts included in account 107 (Improvements to Facilities Leased from Others).

    • (3) When the final costs of retirement of depreciable gas plant are established, this account shall be debited with

      • (a) the book cost of the plant retired, and

      • (b) the costs of removal, demolition or dismantling of the plant retired,

      and the account shall be credited with amounts recovered from salvage, including insurance proceeds.

    • (4) This account shall be debited or credited with amounts transferred to another account as a result of an extraordinary retirement. (See section 40 of these Regulations)

    • (5) For general ledger and balance sheet purposes, this account shall be regarded and treated as a composite reserve, but for the purposes of analysis, a company shall maintain subsidiary records in which accumulated depreciation is subdivided into component parts corresponding to

      • (a) each group of plant accounts,

      • (b) each plant account, or

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

      and the records shall show in detail the current debits and credits. (See sections 48 to 57 of these Regulations)

    • (6) This account shall be subdivided as follows:

      • (a) Accumulated Depreciation — Gas Plant in Service;

      • (b) Accumulated Depreciation — Gas Plant Leased to Others;

      • (c) Accumulated Depreciation — Gas Plant Held for Future Use; and

      • (d) Accumulated Depreciation — Improvements to Facilities Leased from Others.

  • 106 
    Accumulated Amortization — Gas Plant
    • (1) When a company is authorized by the Board to amortize amounts carried in account 100 (Gas Plant in Service), account 101 (Gas Plant Leased to Others) or account 102 (Gas Plant Held for Future Use), this account shall be credited with amounts concurrently debited to account 304 (Amortization). (See sections 59 and 60 of these Regulations)

    • (2) Where applicable, this account shall also be credited with the amortization of amounts included in account 107 (Improvements to Facilities Leased from Others).

    • (3) Where a change from depreciation accounting to amortization accounting is authorized by the Board with respect to any group of plant accounts, plant account, or group of assets within a plant account, the applicable balance in account 105 (Accumulated Depreciation — Gas Plant), shall be transferred to this account.

    • (4) When the final costs of retirement of amortizable gas plant are established, this account shall be debited with

      • (a) the book cost of the plant retired, and

      • (b) the costs of removal, demolition or dismantling of the plant retired,

      and the account shall be credited with amounts recovered from salvage, including insurance proceeds.

    • (5) This account shall be debited or credited with amounts transferred to another account as a result of an extraordinary retirement. (See section 40 of these Regulations)

    • (6) Subsidiary records shall be maintained for each group of plant items under a separate amortization authorization.

    • (7) This account shall be subdivided as follows:

      • (a) Accumulated Amortization — Gas Plant in Service;

      • (b) Accumulated Amortization — Gas Plant Leased to Others;

      • (c) Accumulated Amortization — Gas Plant Held for Future Use; and

      • (d) Accumulated Amortization — Improvements to Facilities Leased from Others.

  • 107 
    Improvements to Facilities Leased from Others
    • (1) This account shall include the unamortized or undepreciated cost of improvements made to facilities leased from others, where the improvements are made for the purpose of gas pipeline operations.

    • (2) Any amounts refunded to the company by the lessor in connection with the improvements referred to in subsection (1) shall be credited to this account.

    • (3) The balance in this account shall be classified according to Schedule IV.

    • (4) Where the service life of the improvements is terminable by the action of the lease, the cost of the improvements, less net salvage, shall be spread over the life of the lease by debits to account 304 (Amortization) and concurrent credits to account 106 (Accumulated Amortization — Gas Plant).

    • (5) Where the service life of the improvements is not terminated by the action of the lease, the cost of the improvements, less net salvage, shall be accounted for as depreciable plant by debits to account 303 (Depreciation) and concurrent credits to account 105 (Accumulated Depreciation — Gas Plant).

  • 110 
    Other Plant
    • (1) This account shall include investment in plant that is entirely distinct from and is not operated in connection with the gas pipeline service of a company.

    • (2) Where other plant is retired from service, this account shall be credited with the cost of the plant retired.

    • (3) Representative List of Items of Other Plant to be included. (See section 14 of these Regulations)

      • Commercial power plants
      • Land and buildings not used in pipeline service
      • Land and property acquired and held in anticipation of an indefinite future use
      • Mineral and timber lands
  • 111 
    Accumulated Depreciation — Other Plant
    • (1) This account shall be credited with accounts of depreciation concurrently debited to account 311 (Expenses of Other Plant) to cover loss in service value of depreciable plant, the cost of which is included in account 110 (Other Plant).

    • (2) At the time of retirement of depreciable other plant, this account shall be debited with

      • (a) the cost of the plant retired, and

      • (b) the costs of removal, demolition or dismantling of the plant retired,

      and the account shall be credited with amounts recovered from salvage, including insurance proceeds.

  • 112 
    Accumulated Amortization — Other Plant
    • (1) This account shall be credited with amounts of amortization concurrently debited to account 311 (Expenses of Other Plant), when a company is required to amortize amounts carried in account 110 (Other Plant).

    • (2) Where there is a change from depreciation accounting to amortization accounting, the applicable balance in account 111 (Accumulated Depreciation — Other Plant) shall be transferred to this account.

    • (3) At the time of retirement of amortizable other plant, this account shall be debited with

      • (a) the book cost of the plant retired, and

      • (b) the costs of removal, demolition or dismantling of the plant retired,

      and the account shall be credited with amounts recovered from salvage, including insurance proceeds.

  • 115 
    Gas Plant Under Construction
    • (1) This account shall include the cost of construction of gas plant not yet placed in service, including

      • (a) the cost of land acquired for such projects;

      • (b) unapplied construction materials and supplies;

      • (c) taxes during construction; and

      • (d) other elements of construction cost.

    • (2) When the construction of any plant included in this account has been completed and the plant has been placed in service, the applicable cost shall be credited to this account and debited to account 100, 101, 102 or 107, as appropriate.

  • 116 
    Other Plant Under Construction

    This account shall include the cost of construction of plant other than plant under construction that may be included in account 115 (Gas Plant Under Construction).

Investments
  • 120 
    Investments in Affiliated Companies
    • (1) This account shall include the cost of a company’s investment in securities issued or assumed by affiliated companies and investment advances made to affiliated companies. (See sections 63 and 66 to 68 of these Regulations)

    • (2) This account shall be maintained in a manner that will enable information on the investment in each affiliated company to be submitted under the following headings:

      • (a) shares;

      • (b) bonds and debentures;

      • (c) other secured obligations;

      • (d) unsecured notes;

      • (e) investment advances;

      • (f) interest accrued on any of the above when the interest is not subject to current settlement; and

      • (g) miscellaneous investments.

    • (3) Where any securities referred to in subsection (2) are pledged, a complete record thereof shall be maintained.

  • 121 
    Other Investments
    • (1) This account shall include

      • (a) the cost of a company’s investment in securities issued or assumed by non-affiliated companies, other than securities held in special deposits or special funds; and

      • (b) investment advances made to non-affiliated companies and individuals. (See sections 63, 66 and 67 of these Regulations)

    • (2) This account shall be maintained in a manner that will enable information on the investment in each non-affiliated company to be submitted under the following headings:

      • (a) shares;

      • (b) bonds and debentures;

      • (c) other secured obligations;

      • (d) unsecured notes;

      • (e) investment advances;

      • (f) interest accrued on any of the above when the interest is not subject to current settlement; and

      • (g) miscellaneous investments.

    • (3) Where any securities referred to in subsection (2) are pledged, a complete record thereof shall be maintained.

  • 122 
    Sinking Funds
    • (1) This account shall include cash and the cost of securities and other assets, held by trustees or by the company’s treasurer, that have been segregated in distinct funds and are for the purpose of providing resources for the redemption of debt or shares.

    • (2) A separate account shall be kept for the sinking funds applicable to each class of debt or share issue.

    • (3) An appropriate record shall be maintained for securities issued or assumed by the company and held in sinking funds. (See section 62 of these Regulations)

  • 123 
    Miscellaneous Special Funds
    • (1) This account shall include cash and the cost of securities and other assets, held by trustees, managers or by the company’s treasurer, that have been segregated in funds for insurance, employees’ pensions, savings, relief, hospital and other purposes not provided for elsewhere.

    • (2) A separate account shall be kept for each fund.

    • (3) This account shall not include funds that the company holds solely as trustee and in which it has no beneficial interest. (See section 62 of these Regulations)

  • 126 
    Allowance for Loss in Value of Investments
    • (1) This account shall include all credit balances maintained by a company where those credit balances represent reductions in the book value of investments carried in account 120 (Investments in Affiliated Companies) and account 121 (Other Investments). (See account 326 (Provision for Loss in Valuation of Investments))

    • (2) Debits to this account that represent reductions in the allowance for loss in value of investments carried in account 120 or 121 shall be made only with the prior approval of the Board.

Current
  • 130 
    Cash

    This account shall include

    • (a) commercial bank accounts available for general chequing purposes, as distinguished from bank accounts provided for special purposes, such as special deposits;

    • (b) petty cash funds; and

    • (c) funds received by a company, recorded as cash receipts and undeposited at the close of the accounting period.

  • 131 
    Special Deposits

    This account shall include

    • (a) the unexpended balances of funds deposited specifically for the payment of dividends, interest and other current liabilities; and

    • (b) other deposits subject to current withdrawal for specific purposes only, including amounts deposited with airlines, utilities and unemployment insurance commissions, etc.

  • 132 
    Temporary Cash Investments

    This account shall include the cost of securities acquired for the purpose of temporarily investing cash, such as government treasury bills, deposit receipts, short-term notes and other investments of a short-term nature. (See sections 63 to 65 of these Regulations)

  • 140 
    Accounts Receivable — Trade

    This account shall include amounts receivable for the transportation, storage and delivery of gas, exclusive of amounts receivable from affiliated companies.

  • 141 
    Accounts Receivable — Other

    This account shall include the following items when the amounts involved are considered collectible:

    • (a) advances to officers, employees and agents as working funds;

    • (b) amounts due from corporations, firms and individuals;

    • (c) the book value of notes receivable or other similar evidence of money receivable, due within one year from the date of issue; and

    • (d) other similar items.

    (See section 75 of these Regulations)

  • 142 
    Accounts Receivable — Affiliated Companies
    • (1) This account shall include all amounts due from affiliated companies, such as trade accounts, dividends and interest, where such amounts are subject to settlement within one year from the date of the balance sheet. (See subsection 80(1) of these Regulations)

    • (2) This account shall be maintained in a manner that will enable information on receivables from each affiliated company to be submitted under the following headings:

      • (a) secured obligations;

      • (b) unsecured notes;

      • (c) advances;

      • (d) debit balances in open accounts;

      • (e) interest accrued on any of the above where such interest is subject to current settlement; and

      • (f) miscellaneous receivables.

  • 145 
    Allowance for Doubtful Accounts
    • (1) This account shall include the total of the balances maintained by a company for the purpose of providing for reductions in the value of current assets recorded in

      • (a) account 140 (Accounts Receivable — Trade),

      • (b) account 141 (Accounts Receivable — Other),

      • (c) account 142 (Accounts Receivable — Affiliated Companies), and

      • (d) account 162 (Other Current Assets),

      and corresponding debits shall be made to account 728 (Other General Expense).

    • (2) Collections on accounts that were previously debited to this account shall be credited to this account.

  • 147 
    Interest and Dividends Receivable
    • (1) This account shall include

      • (a) the amount of interest accrued to the date of the balance sheet on bonds owned,

      • (b) the amount of interest accrued to the date of the balance sheet on loans made, and

      • (c) the amounts of dividends declared on shares owned,

      except where the interest or dividend receivable is from an affiliated company.

    • (2) No dividends or other returns on securities issued or assumed by the accounting company shall be included in this account.

  • 150 
    Plant Materials and Operating Supplies
    • (1) This account shall include the cost of materials purchased primarily for use in construction, operations or maintenance, such as shop material, articles in process of fabrication by the accounting company, spare parts, fittings, valves, appliances, line pipe and other supplies but shall not include materials properly includable in account 115 (Gas Plant Under Construction) or account 102 (Gas Plant Held for Future Use).

    • (2) Materials and supplies purchased shall be debited to this account at the actual costs of the materials and supplies at point of free delivery plus transportation costs, ad valorem taxes and any other relevant costs, and in determining the cost of materials and supplies, suitable allowance shall be made for all discounts allowed in the purchase thereof.

    • (3) Materials and supplies issued shall be credited to this account and concurrently debited to the appropriate construction, operating or maintenance expense account on the basis of a unit price, determined by the use of cumulative average, first in-first out, or such other method of inventory accounting as conforms with accepted accounting practices consistently applied.

    • (4) Material recovered in connection with construction, maintenance work or the replacement or demolition of plant and classified as reusable shall be debited to this account at its original cost, estimated if not known, and credited to the appropriate maintenance, construction or accumulated depreciation account.

    • (5) Material recovered in connection with construction, maintenance work or the replacement or demolition of plant and classified as scrap shall be debited to this account on the basis of its fair and reasonable value and credited to the appropriate maintenance, construction or accumulated depreciation account.

    • (6) When salvaged material is sold at a higher or lower price than that at which it is included in this account, an appropriate adjustment shall be made in the accounts that were credited when the material was recovered and debited to this account.

  • 151 
    Other Material and Supplies

    This account shall include the value of all unapplied material for current non-gas pipeline operations and maintenance, such as spare parts, shop material and supplies held primarily for other plant, merchandising, jobbing and contract work.

  • 152 
    Gas Stored Underground — Available for Sale
    • (1) This account shall include

      • (a) the cost of gas purchased or produced and stored in depleted or partially depleted gas or oil fields or other underground reservoirs and held for use in meeting gas service requirements of customers; and

      • (b) the value of that portion of the stored gas in excess of the amount that may properly be included in account 458 (Base Pressure Gas).

    • (2) Gas included in this account shall be valued at average cost on a consistent basis, but gathering and transmission expenses incurred through the use of company facilities in moving gas to the storage area and expenses of storage facilities shall not be included in the cost except as may be authorized by the Board.

    • (3) Deliveries to or withdrawals from underground storage of gas held for use to satisfy gas requirements of customers shall be debited or credited to this account, as appropriate.

  • 153 
    Transmission Line Pack Gas

    This account shall include the cost of gas owned by the company in its own pipelines or in non-owned pipelines and used to maintain the line pressure required for the transmission of gas, but the gathering and transmission expenses incurred through the use of company facilities in moving gas to the transmission area shall not be included except as authorized by the Board.

  • 160 
    Prepayments
    • (1) This account shall include amounts representing prepaid gas, expenses and other similar items that are to be debited to appropriate accounts by systematic write-off.

    • (2) This account shall be maintained in a manner that will disclose the amount of each class of prepayment and write-off.

  • 162 
    Other Current Assets

    This account shall include current assets not provided for elsewhere.

Deferred Debits
  • 170 
    Unamortized Debt Discount and Expense
    • (1) This account shall include the total of the debit balance in the subaccounts maintained for each series of each class of long-term debt in accordance with section 69.

    • (2) The amounts recorded in this account shall be amortized in accordance with section 72 or 73, as applicable.

  • 171 
    Extraordinary Plant Losses
    • (1) This account shall include material losses authorized by the Board to be transferred from accumulated depreciation or accumulated amortization accounts to this account, in accordance with subsection 40(3).

    • (2) Before an amount is transferred to this account, a company shall provide the Board with full details of the calculation thereof together with the future accounting treatment proposed by the company.

    • (3) Amounts recorded in this account shall be amortized by systematic debits to account 304 (Amortization), or otherwise disposed of as the Board may approve or direct.

  • 172 
    Preliminary Survey and Investigation Charges
    • (1) This account shall be debited with all expenditures for preliminary surveys, plans, investigations and similar items made for the purpose of determining the feasibility of projects for gas pipeline service, and with the costs associated with applications for certificates of public convenience and necessity, board hearings, the acquisition of options to purchase land, land rights, easements and similar items for use in contemplated projects.

    • (2) Where, as a result of the expenditures referred to in subsection (1), a plant is acquired or constructed, this account shall be credited and the appropriate accounts debited with the costs related to that plant.

    • (3) Where a project referred to in subsection (1) is not proceeded with, the costs included in this account shall be transferred to account 329 (Other Income Deductions), unless the amount is material, in which case the company shall inform the Board and, unless otherwise directed by the Board, shall debit the amount to account 341 (Extraordinary Income Deductions).

    • (4) Records supporting entries to this account shall be maintained in a manner that will enable complete information to be available as to the nature and purpose of the expenditures.

  • 173 
    Other Work in Progress

    This account shall include all costs that are incurred for other work in progress and that may not be included in account 115 (Gas Plant Under Construction) or account 116 (Other Plant Under Construction).

  • 176 
    Public Improvements
    • (1) This account shall include

      • (a) the deferred portion of assessments by governmental authorities (by mutual agreement or otherwise) to cover the cost of constructing public improvements, when a company has elected to make payment by lump sum and not by instalments over a number of years; and

      • (b) the cost borne by a company of public improvements constructed by it under governmental requirements.

    • (2) Amounts that are no longer deferred shall be debited to account 305 (Municipal and Other Taxes) and credited to this account.

    • (3) Representative List of Items of Public Improvements to be included. (See section 14 of these Regulations)

      • Cost of land outside a company’s right of way to provide for the relocation of street or highway
      • Curbing streets and highways
      • Damage to property of others when incidental to highway construction
      • Drainage system
      • Engineering expenses when such costs apply to items chargeable to this account
      • Flood protection
      • Grading streets and highways
      • Guttering streets and highways
      • Irrigation systems
      • Levee
      • Paving streets and highways
      • Sewer system
      • Sidewalk
      • Street lighting system
      • Water works
  • 177 
    Share Capital Expense
    • (1) This account shall, with respect to the original and subsequent issues of share capital or with respect to any shares split, include expenses of the following type:

      • (a) the cost of preparing and distributing prospectuses;

      • (b) the cost of soliciting subscriptions for shares;

      • (c) fees and commissions paid to agents, lawyers and accountants;

      • (d) the cost of preparing and issuing certificates of shares;

      • (e) expenses incurred in securing legislative and regulatory approval for increases or decreases in authorized capital; and

      • (f) other similar items.

      (See sections 68 to 70 of these Regulations)

    • (2) The expenses of the type indicated in paragraph (1)(d) with respect to the subsequent issues of share certificates shall be debited to account 728 (Other General Expense).

    • (3) Amounts recorded in this account shall be amortized, or otherwise disposed of, as the Board may approve or direct.

  • 178 
    Organization Expense
    • (1) This account shall include expenditures incidental to organizing a company, such as

      • (a) all fees paid to governments for the privilege of incorporation;

      • (b) legal fees; and

      • (c) other similar items.

    • (2) Amounts recorded in this account shall be amortized, or otherwise disposed of, as the Board may approve or direct.

  • 179 
    Other Deferred Debits

    This account shall include

    • (a) expenditures that cannot be disposed of until further information is received;

    • (b) undistributed balances in clearing accounts;

    • (c) variances in estimated and actual foreign exchange expenditures arising from foreign currency service of debt securities issued by the company and variances between estimated and actual rates of foreign exchange realized from repurchases of debt securities issued by the company where such a deferral of foreign exchange variances has been directed by the Board to facilitate consideration of disposition at a later date; and

    • (d) expenditures of a deferred nature, not provided for elsewhere, that are to be amortized over future periods.

Liabilities
Shareholders Equity
  • 200 
    Share Capital
    • (1) This account shall include

      • (a) the total par value of any class of shares, if applicable, and

      • (b) the total amount received from the issuance of each class of shares without par value, excluding amounts that have been properly allocated to account 210 (Contributed Surplus),

      where the shares have been issued to bona fide purchasers and has not been reacquired and cancelled.

    • (2) This account shall also include appropriations of retained earnings that have been transferred to share capital.

    • (3) When share capital is reduced or cancelled, this account shall be debited with the appropriate amount applicable to the particular series or class of shares involved.

    • (4) This account shall be subdivided in a manner that will show the total amount credited to this account with respect to each series or class of shares issued and outstanding and carrying different conditions.

    • (5) An appropriate record shall be maintained showing the total number of shares issued and outstanding for each series or class referred to in subsection (4).

  • 210 
    Contributed Surplus
    • (1) This account shall include

      • (a) surplus arising from transactions relating to the company’s share capital; and

      • (b) capital contributions and donations from government and other sources.

    • (2) Representative List of Items of Contributed Surplus to be included. (See section 14 of these Regulations.)

      • (a) Premium received on the issuance of par value shares prior to December 15, 1975 (Canada Business Corporations Act, S.C. 1974-75-76, c. 33) or a prior date where a Company elected to be subject to the Act

      • (b) Proceeds of sale of donated shares

      • (c) Credits resulting from the redemption or conversion of shares at less than the amount recorded as share capital

      • (d) Other contributions made by shareholders in excess of par or stated value of shares

      • (e) The portion of proceeds from the issuance of no par value shares that has been properly allocated to this account

      • (f) Capital contributions in the form of subsidies, building sites, etc.

  • 212 
    Retained Earnings

    This account shall include the balance, debit or credit, of the amounts included in the Retained Earnings accounts listed in Schedule III to these Regulations.

  • 216 
    Excess of Appraised Value of Plant Over Depreciated Cost
    • (1) This account shall be credited with the increase in value of fixed assets as a result of an appraisal, where the appraisal is associated with

      • (a) an actual purchase and sale of fixed assets, as in the acquisition of an affiliated company;

      • (b) a reorganization of the accounting company; or

      • (c) a substantial issue of securities, whether equity shares or otherwise.

    • (2) The use of this account and the disposition of any amounts included herein shall be subject to the prior approval of the Board.

Long-term Liabilities
  • 220 
    Long-term Debt
    • (1) This account shall include

      • (a) the total par value of unmatured debt maturing more than one year from the date of the balance sheet, where such debt is issued and not retired or cancelled; and

      • (b) the total par value of similar unmatured debt of other companies, the payment of which debt has been assumed by the company.

    • (2) The amounts in this account shall be divided to show the par value of

      • (a) certificates or other evidences of long-term debt, pledged and unpledged, held in the company’s treasury by its agents or trustees or otherwise subject to its control; and

      • (b) certificates or other evidences of long-term debt issued and outstanding, and not held by the company, its agents or trustees, or subject to its control.

    • (3) The amounts included in this account shall be further divided to show the amount of each of the following classes of long-term debt:

      • (a) mortgage bonds — bonds secured by lien on physical property and not included in any other subdivisions of this account;

      • (b) collateral trust bonds — bonds and notes secured by a lien on securities or other negotiable paper, and stock trust certificates that are similar in character to collateral trust bonds;

      • (c) income bonds — bonds that are a lien on a company’s revenue alone, or bonds that, while being a lien on the company’s property and franchises, provide for payments of interest only if the interest is earned;

      • (d) convertible bonds — bonds that may be converted into capital stock of the company, according to the agreement under which they are issued; and

      • (e) miscellaneous obligations — all other long-term debt obligations maturing more than one year from the date of the balance sheet.

    • (4) Each of the classes listed in subsection (3) shall be divided into subclasses according to

      • (a) differences in security given therefor;

      • (b) rates of interest;

      • (c) interest dates; and

      • (d) dates of maturity.

    • (5) Long term debt securities are considered to be issued when they have been sold to a bona fide purchaser for valuable consideration and when the purchaser holds them free from all control by the accounting company.

    • (6) All long-term debt securities that are issued and not reacquired and are held by or for the company are considered to be outstanding.

    • (7) Long-term debt that is to be repaid in a foreign currency shall be included in this account in accordance with generally accepted accounting practice.

  • 221 
    Company Long-term Debt Owned
    • (1) This account shall include the par value of long-term debt actually issued or assumed by a company and reacquired by it and not retired or cancelled, but shall not include long-term debt held in sinking funds or miscellaneous special funds. (See section 74 of these Regulations)

    • (2) Where the long-term debt referred to in subsection (1) is to be repaid in a foreign currency, for purposes of that subsection par value means the par value in the foreign currency converted to the Canadian dollar equivalent.

    • (3) This account shall show

      • (a) total par value unpledged; and

      • (b) total par value pledged.

  • 248 
    Advances from Affiliated Companies
    • (1) This account shall include all amounts owed to affiliated companies and not subject to settlement within one year and, without limiting the generality of the foregoing, shall include

      • (a) the par value of bonds, debentures and long-term notes payable and issued to affiliated companies;

      • (b) the par value of non-negotiable notes issued to affiliated companies;

      • (c) the par value of matured long-term bonds, debentures or notes payable where such bonds, debentures or notes of the company are held by affiliated companies, where there is no agreement for an extension as to time of payment but the collection of the principal is not enforced;

      • (d) credit balances in open accounts with affiliated companies, other than credit balances in current accounts; and

      • (e) interest accrued on any of the items referred to in paragraphs (a) to (d) when the interest is not subject to current settlement.

    • (2) Separate subaccounts shall be kept for each of the items listed in subsection (1). (See section 80 of these Regulations)

  • 249 
    Other Long-term Debt

    This account shall include amounts payable more than one year from the date of the balance sheet where such amounts have not been provided for elsewhere and loans payable authorized by subsection 76(2) to be included in this account.

Current Liabilities
  • 250 
    Loans and Notes Payable
    • (1) This account shall include the balances representing a company’s outstanding obligations in the form of loans and notes payable or other similar evidences of indebtedness payable on demand or within a time not exceeding one year from the date of the balance sheet.

    • (2) This account shall be maintained in such form as to show separately the amounts of indebtedness secured by collateral.

  • 251 
    Accounts Payable and Accrued
    • (1) This account shall include

      • (a) the amount of vouchers and payrolls or accounts unpaid on the date of the balance sheet;

      • (b) outstanding drafts drawn by agents;

      • (c) unpaid rents under leases or agreements;

      • (d) taxes collected from employees and others for the account of taxing agencies; and

      • (e) other items of the nature of demand liabilities not included in account 250 (Loans and Notes Payable), account 252 (Accounts Payable — Affiliated Companies), account 257 (Interest Payable and Accrued) and account 259 (Other Current Liabilities).

    • (2) This account shall also include a company’s estimated accrued liabilities with respect to accounts payable. (See sections 77 and 78 of these Regulations)

    • (3) A company’s estimates of liabilities for injuries to persons and for loss and damage claims shall not be included in this account but shall be credited to account 259 (Other Current Liabilities) or account 279 (Other Deferred Credits), as applicable.

  • 252 
    Accounts Payable — Affiliated Companies

    This account shall include all amounts owed to affiliated companies and subject to settlement within one year from the date of the balance sheet and, without limiting the generality of the foregoing, shall include

    • (a) notes;

    • (b) advances;

    • (c) credit balances and open accounts;

    • (d) long-term debt due within one year;

    • (e) joint revenue payable;

    • (f) interest on any of the above;

    • (g) dividends; and

    • (h) miscellaneous amounts.

  • 253 
    Dividends Payable

    This account shall include dividends declared on capital stock and not yet paid by a company other than dividends payable to affiliated companies and recorded in account 252.

  • 254 
    Customers’ Security Deposits

    This account shall include all amounts deposited with a company by customers as security for payment of debts.

  • 256 
    Taxes Accrued
    • (1) This account shall be credited with the accruals of all taxes that are currently payable to federal, provincial or other governmental authorities.

    • (2) The accruals referred to in subsection (1) may be based upon estimates, provided that the estimates shall be adjusted to reflect in this account at all times the estimates of the company as to its unpaid liability for each of the several classes of taxes that has not been finally settled.

    • (3) All tax payments for which accruals have been made shall be debited to this account.

    • (4) The records supporting the entries in this account shall be kept to show separately, by classes of taxes, the amount of the tax accruals for the current year and the adjustments of accruals for prior years.

  • 257 
    Interest Payable and Accrued

    This account shall be credited with interest due or accrued on

    • (a) notes payable,

    • (b) bank overdrafts and loans, and

    • (c) long-term debt and other obligations,

    other than such interest payable to affiliated companies.

  • 258 
    Long-term Debt Due Within One Year

    This account shall include

    • (a) the amount of long-term debt and any premiums thereon that will become payable within one year from the date of the balance sheet,

    • (b) the amount of matured and unpaid long-term debt and any premiums thereon for which there has been no specific agreement for extension of the time of payment, and

    • (c) the amount of long-term debt called for redemption but not presented to the company or its agents for payment,

    other than long-term debt payable to affiliated companies.

  • 259 
    Other Current Liabilities

    This account shall include all contractor’s hold backs and all other current liabilities not provided for elsewhere, including the company’s estimate of current liabilities in respect of injuries to persons and loss and damage claims.

Deferred Credits and Appropriations
  • 270 
    Unamortized Debt Premium and Expense
    • (1) This account shall include the unamortized premiums received from the issuance of long-term debt and shall include the total of the credit balances in the subaccounts maintained for each series of each class of long-term debt in accordance with section 71.

    • (2) The amounts recorded in this account shall be amortized in accordance with section 72 or 73, as applicable.

  • 275 
    Gas Cost and Maintenance Equalization

    This account shall include

    • (a) the undistributed debit or credit resulting from a company following a method of equalizing its gas cost through the year because of seasonal variations in unit gas prices; and

    • (b) the ledger balances representing reserves created by debits to operations for maintenance expenses in accordance with section 47.

  • 276 
    Accumulated Deferred Income Taxes

    Where a company does not follow the taxes payable basis of accounting for income taxes, this account shall include the amounts by which a company’s provision for income taxes for a particular year differs from the amount of income taxes payable for that year.

  • 278 
    Contributions and Grants
    • (1) This account shall include non-refundable contributions or grants in cash, services or property from governments or government agencies, corporations, individuals and others for contributions in aid of construction.

    • (2) Amounts included in this account shall not be transferred to any other account without the prior approval of the Board.

    • (3) This account shall be maintained in a manner that will furnish complete information respecting the purpose of each contribution or grant.

  • 279 
    Other Deferred Credits

    This account shall include

    • (a) credit items that cannot be disposed of until further information is received;

    • (b) undistributed balances in clearing accounts;

    • (c) variances in estimated and actual foreign exchange expenditures arising from foreign currency service of debt securities issued by a company and variances between estimated and actual rates of foreign exchange realized from repurchases of debt securities issued by the company where such a deferral of foreign exchange variances has been directed by the Board to facilitate consideration of disposition at a later date;

    • (d) material gain on extraordinary retirement that is authorized by the Board to be transferred from accumulated depreciation or accumulated amortization accounts to this account, in accordance with subsection 40(3) which gain shall be amortized as directed by the Board; and

    • (e) credit items of a deferred nature, not provided for elsewhere, that are to be amortized over future periods.

Appropriations
  • 290 
    Insurance Appropriations
    • (1) This account shall include the credit balances representing insurance appropriations concurrently debited to expenses to cover self-carried risks on fire, fidelity, vehicle, boiler, casualty, burglary, other insurance, and re-insurance recoveries from insurance companies. (See sections 61 and 62 of these Regulations)

    • (2) To the extent that a loss or damage sustained is covered by this account, the amount of the loss or damage shall be debited to this account.

    • (3) Separate subaccounts shall be kept for each kind of insurance reserve created.

  • 291 
    Welfare and Pension Appropriations
    • (1) This account shall include

      • (a) the credit balances representing the liability of the company for amounts contributed by employees and by the company through debits to expenses or such other accounts as are approved by the Board for

        • (i) pensions,

        • (ii) accident and death benefits,

        • (iii) savings,

        • (iv) relief, and

        • (v) hospital or other provident purposes,

      whether or not a special fund has been established to meet such liabilities (See section 62 and account 123 (Miscellaneous Special Funds) of these Regulations); and

      • (b) the credit balances representing the liability of the company for amounts provided by debits to expenses in respect of deferred compensation under an employees’ profit-sharing plan.

    • (2) Separate subaccounts shall be kept for each kind of appropriation created pursuant to subsection (1).

    • (3) Disbursements shall be debited to this account and any excess of such disbursements over the amounts appropriated shall be transferred to account 724 (Injuries and Damages), or to account 725 (Employee Benefits), as applicable.

    • (4) Current amounts payable relative to funded welfare, pension and other plans with insurance companies or trustees shall be transferred to account 251 (Accounts Payable and Accrued).

  • 293 
    Other Appropriations

    This account shall be credited with all appropriations or allowances that may not be included in account 145 (Allowance for Doubtful Accounts), account 290 (Insurance Appropriations), account 291 (Welfare and Pension Appropriations) or account 126 (Allowance for Loss in Value of Investments), including estimated liabilities for injuries to persons and loss and damage claims not includible in account 259 (Other Current Liabilities).

  • SOR/86-998, ss. 27, 28(E)

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