Gas Pipeline Uniform Accounting Regulations

Index of Accounts

Text Pertaining to Income Accounts

General

The balance of all income accounts shall be closed into retained earnings account 350 (Balance Transferred from Income) at the end of each fiscal year.

• 300 

  Operating Revenue

  This account shall include the total revenues derived from operations recorded in the accounts set out in Schedule V to these Regulations.

• 301 

  Operating Expense

  This account shall include the total expenses of operations recorded in the accounts set out in Schedule VI to these Regulations.

• 302 

  Maintenance Expense

  This account shall include the total maintenance expenses recorded in the accounts set out in Schedule VII to these Regulations.

• 303 

  Depreciation

  • (1) This account shall include debits for the depreciation of plant included in

    • (a) account 100 (Gas Plant in Service);

    • (b) account 101 (Gas Plant Leased to Others); and

    • (c) account 102 (Gas Plant Held for Future Use).

  • (2) Subsidiary records shall be maintained to show separately the depreciation expense for each plant account or group of plant accounts that perform similar functions. (See sections 49 to 59 of these Regulations inclusive and the text of account 105)

  • (3) This account shall also include debits for the depreciation of Improvements to Facilities Leased from Others, where it is inappropriate to amortize the amounts of such improvements over the life of the lease by debit to account 304 (Amortization). (See text of account 107)

• 304 

  Amortization

  • (1) This account shall include debits for the amortization of plant included in

    • (a) account 100 (Gas Plant in Service),

    • (b) account 101 (Gas Plant Leased to Others), and

    • (c) account 102 (Gas Plant Held for Future Use)

    when a change from depreciation accounting to amortization accounting has been approved by the Commission. (See section 59 of these Regulations)

  • (2) This account shall also include debits for the amortization of amounts recorded in account 171 (Extraordinary Plant Losses), when approval or direction of the Commission has been received. (See text of account 171)

  • (3) This account shall also include debits for the amortization of Improvements to Facilities Leased from Others. (See text of account 107)

  • (4) Subsidiary records shall be maintained to show separately the amortization expense for each plant account or group of plant accounts that perform similar functions.

  • (5) This account shall also include credits for the amortization of amounts recorded in account 278 (Contributions and Grants), when approval or direction of the Commission has been received. (See text of account 278)

• 305 

  Municipal and Other Taxes

  • (1) This account shall include

    • (a) taxes levied by governments and municipalities relating to plant, operations and privileges, whether based upon valuation of the plant, quantity of gas transmitted, length of pipeline operated or owned, or other bases;

    • (b) instalment payments covering assessments by governmental authorities for public improvements, and the write-off of lump sum payments originally debited to account 176 (Public Improvements); and

    • (c) other taxes not provided for elsewhere.

  • (2) Taxes on new lines under construction or on plant acquired for the extension of existing lines or on additions or replacements before the facilities are opened for commercial operations or on plant acquired before it becomes available for service shall be debited to the appropriate gas plant accounts.

• 306 

  Income Taxes

  This account shall include provision for federal, provincial or other government income taxes levied on the basis of a company’s operations for the fiscal period, except income taxes chargeable to account 353 (Income Tax Applicable to Retained Earnings Adjustments).

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

    • (a) current income taxes applicable to income before extraordinary items;

    • (b) current income taxes and reductions of current income taxes applicable to extraordinary items; and

    • (c) deferred income taxes.

• 307 

  Revenue from Gas Plant Leased to Others

  This account shall include revenues from gas plant that is included in account 101 (Gas Plant Leased to Others) and that constitutes a distinct operating unit or system leased by the company to others.

• 308 

  Rent for Gas Plant Leased from Others

  This account shall include rent for gas plant that is leased by the company from others and that constitutes a distinct operating unit or system.

• 310 

  Revenue from Other Plant

  • (1) This account shall include the total revenues from the operation of plant that is included in account 110 (Other Plant).

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

    • Revenue from commercial power plants
    • Revenue from lands and buildings not used in gas operations
    • Revenue from lands and plant acquired and held in anticipation of an indefinite future use
    • Revenue from mineral and timber lands

• 311 

  Expense of Other Plant

  • (1) This account shall include

    • (a) all expenses, including depreciation but excluding income taxes, arising from the operation of other plant the cost of which is included in account 110 (Other Plant); and

    • (b) all expenses, other than depreciation, of gas plant leased to others as operating units or systems while the lessee has exclusive possession.

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

    • Expense of commercial power plants
    • Expense of lands and buildings not used in gas operations
    • Expense of lands and plant acquired in anticipation of an indefinite future use
    • Expense of mineral and timber lands

• 312 

  Non-Operating Revenue

  This account shall include revenues that are from commercial activities carried on within the corporate structure of the company and that may not be included in account 300 (Operating Revenue).

• 313 

  Non-Operating Expense

  This account shall include expenses from commercial activities carried on within the corporate structure of the company that may not be included in account 301 (Operating Expense) or account 302 (Maintenance Expense).

• 314 

  Income from Investments

  • (1) This account shall include

    • (a) interest and dividends from investments recorded in account 121 (Other Investments) and account 132 (Temporary Cash Investments);

    • (b) interest on bank balances, open accounts, special deposits and other analogous items, where the interest is the property of the company; and

    • (c) where the amounts involved are not material, gains and losses on sale, or amounts required to provide allowances for the decrease in market value of temporary cash investments. (See sections 64 and 65 of these Regulations)

  • (2) At the option of the company, there may be included in this account the applicable portion of discount or premium on any investments recorded in accounts 121 and 132. (See section 63 of these Regulations)

• 315 

  Income from Affiliated Companies

  • (1) This account shall include income from the investment of a company in shares, securities and other types of indebtedness that are issued or assumed by affiliated companies and in respect of which the income is the property of the accounting company, whether such shares, securities and other types of indebtedness are owned by the accounting company and held in its treasury or deposited in trust, or are otherwise controlled. (See section 80 of these Regulations)

  • (2) The amounts included in this account shall be divided to show separately the types of income as follows:

    • (a) dividends;

    • (b) interest; and

    • (c) other income.

  • (3) Income from affiliated companies shall not be credited to this account until such time as it is recorded on the books of the affiliated company.

  • (4) At the option of the company, there may be included in this account the applicable portion of discount or premium on any investments recorded in account 120. (See section 63 of these Regulations)

• 316 

  Income from Sinking and Other Funds

  • (1) This account shall include

    • (a) the income accrued on cash, securities and other assets, not including debt securities issued or assumed by the company, recorded in account 122 (Sinking Funds) and account 123 (Miscellaneous Special Funds) (See section 62 of these Regulations); and

    • (b) immaterial gains realized and losses sustained in the sales of securities recorded in account 122 (Sinking Funds) and account 123 (Miscellaneous Special Funds). (See section 62 of these Regulations)

  • (2) At the option of the company, there may be included in this account the applicable portion of the discount or premium on any securities recorded in accounts 122 and 123. (See section 63 of these Regulations)

• 317 

  Gain on Foreign Exchange

  This account shall include gains on foreign exchange during the fiscal period, including realized gains as well as gains owing to the conversion to the Canadian dollar equivalent, on assets and liabilities held in foreign currencies.

• 319 

  Other Income

  This account shall include

  • (a) gains realized from the sale of materials and supplies not purchased for resale;

  • (b) immaterial gains realized from reacquisition at less than net book value of the debt securities issued by the company;

  • (c) immaterial gains arising from the sale of land, other plant or investments carried in account 120 (Investments in Affiliated Companies) and account 121 (Other Investments); and

  • (d) all other income items not provided for elsewhere.

• 320 

  Interest on Long-Term Debt

  • (1) This account shall include current accruals of interest on all classes of long-term debt included in account 220 (Long-Term Debt), account 249 (Other Long-Term Debt) and account 258 (Long-Term Debt Due Within One Year), less current accruals on the debt included in account 221 (Company Long-Term Debt Owned).

  • (2) This account shall be maintained to show separately the interest on each class of long-term debt.

• 321 

  Amortization of Debt Discount, Premium and Expense

  • (1) This account shall be debited or credited, as applicable, during each fiscal period, with the proportion of the discount, premium and expense on long-term debt obligations as may be applicable to the period.

  • (2) The proportion referred to in subsection (1) shall be determined in accordance with section 71, 72 or 73 as applicable.

• 322 

  Interest on Amounts Due Affiliated Companies

  This account shall include current accruals of interest of all classes of debt included in account 248 (Advances from Affiliated Companies) or account 252 (Accounts Payable — Affiliated Companies).

• 323 

  Other Interest

  This account shall include

  • (a) all interest except that chargeable to account 320 (Interest on Long Term Debt) or account 322 (Interest on Amounts Due Affiliated Companies); and

  • (b) all discounts, premiums and expenses on short term notes issued by the company and maturing in one year or less from the date of the balance sheet.

• 324 

  Allowance for Funds Used During Construction (Credit)

  This account shall be credited with amounts concurrently debited to account 497 (Allowance for Funds Used During Construction). (See section 27 of these Regulations and account 497)

• 325 

  Loss on Foreign Exchange

  This account shall include losses on foreign exchange during the fiscal period, including realized losses as well as losses owing to the conversion to the Canadian dollar equivalent, on assets and liabilities held in foreign currencies.

• 326 

  Provision for Loss in Valuation of Investments

  • (1) This account shall be debited with amounts concurrently credited to account 126 (Allowance for Loss in Valuation of Investments), in respect of immaterial reductions in the value of investments carried in account 120 (Investments in Affiliated Companies) or account 121 (Other Investments). (See text of account 126 and section 67 of these Regulations)

  • (2) This account shall also include a company’s share of the losses or subsequent adjustments thereof described in section 68, unless such losses or adjustments are material.

• 329 

  Other Income Deductions

  This account shall include

  • (a) immaterial losses through reacquisitions at greater than net book value of debt securities issued by the company;

  • (b) immaterial losses arising from the sale of land, other plant or investments carried in account 120 (Investments in Affiliated Companies), and account 121 (Other Investments); and

  • (c) all other income deductions not provided for elsewhere.

Extraordinary Items

• 331 

  Extraordinary Income

  • (1) Unless otherwise directed by the Commission in particular cases, a company shall include in this account all material gains constituting “Extraordinary Items”. (See subsections 8(2) and (4) of these Regulations.)

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

    • Gain on extraordinary retirement of depreciable plant (See section 40)
    • Gain on sale or retirement of depreciable Other Plant (See section 43)
    • Gain on sale or retirement of land (See section 44)
    • Gain on sale of assets included in Sinking Funds or Miscellaneous Special Funds (See section 62)
    • Gain on sale of Temporary Cash Investments (See section 64)
    • Gain on sale of Investments in Affiliated Companies or Other Investments (See section 66)
    • Adjustment to account 126 as described in subsection 68(2) of these Regulations
    • Gain on redemption of long-term debt (See section 73)
    • Gain on reacquisition of long-term debt (See section 74)

• 341 

  Extraordinary Income Deductions

  • (1) A company shall include in this account all material losses constituting “Extraordinary Items”. (See subsections 8(2) and (4) of these Regulations)

  • (2) Representative list of Items of extraordinary deductions to be included in the account. (See section 14 of these Regulations)

    • Loss on an extraordinary retirement of depreciable plant (See section 40)
    • Loss on sale or retirement of depreciable Other Plant (See section 43)
    • Loss on sale or retirement of land (See section 44)
    • Loss on sale of assets included in Sinking Funds or Miscellaneous Special Funds (See section 62)
    • Loss on sale of Temporary Cash Investments (See section 64)
    • Reduction in the value of Temporary Cash Investments (See section 65)
    • Loss on sale of Investments in Affiliated Companies or Other Investments (See section 66)
    • Reduction in the value of Investments in Affiliated Companies or Other Investments (See section 67)
    • Loss on redemption of long-term debt (See section 73)
    • Loss on reacquisition of long-term debt (See section 74)
    • Preliminary Survey and Investigation Charges for projects not proceeded with (See text of account 172)