GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Oil Pipeline Uniform Accounting Regulations — 38
38 (1) Where salvaged material is retained for use by a company, the original cost, estimated if not known, of the material, less a fair allowance for depreciation, shall be debited to account 8 (Materials and Supplies). (2) The salvage value of depreciable plant or salvaged material therefrom shall be credited to account 31 (Accumulated Depreciation — Transportation Plant) or account 32 (Accumulated Amortization — Transportation Plant), as applicable. (3) The removal costs incurred in dismantling or demolishing retired depreciable plant and in recovering salvage therefrom shall be debited to account 31 (Accumulated Depreciation — Transportation Plant) or account 32 (Accumulated Amortization — Transportation Plant), as applicable, except that the current cost of removing and replacing a minor item of plant in maintenance operations shall be included in the appropriate expense account.
Oil Pipeline Uniform Accounting Regulations — 39
39 (1) In respect of depreciable plant, ordinary retirement means a retirement of depreciable plant that results from causes reasonably assumed to have been anticipated or contemplated in prior depreciation or amortization provisions. (2) There shall be no debit or credit to income or to retained earnings for an ordinary retirement.
Oil Pipeline Uniform Accounting Regulations — 40
40 (1) In respect of depreciable plant, extraordinary retirement means a retirement of depreciable plant that results from causes not reasonably assumed to have been anticipated or contemplated in prior depreciation or amortization provisions, including such causes as fire, storm, flood, sudden and complete obsolescence or unexpected and permanent shutdown of an entire operating assembly. (2) Where the gain or loss on an extraordinary retirement is material, the company shall inform the Regulator and shall transfer the amount of the gain or loss from account 31 (Accumulated Depreciation-Transportation Plant) or account 32 (Accumulated Amortization-Transportation Plant) to account 402 (Extraordinary Income) or to account 422 (Extraordinary Income Deductions), as applicable. (3) Immaterial gains or losses resulting from extraordinary retirements shall be accounted for in the same way as ordinary retirements. SOR/86-999, s. 6 SOR/2020-50, s. 4
Oil Pipeline Uniform Accounting Regulations — 41
41 (1) Where a plant unit of pipeline is relocated, it shall be considered as plant retired and its book cost shall be credited to the appropriate plant account. (2) Where a plant unit of pipeline has been relocated, the relocated plant unit shall be considered as an addition and the cost shall be debited to the appropriate plant account. (3) Where a company’s pipeline or any part thereof is located in accordance with an agreement that may require the company to relocate all or part of its pipeline and the circumstances are such that the company has no reasonable alternative but to relocate more than a plant unit of pipeline, the company may, with the approval of the Commission, debit the costs of relocation to expenses for the period in which the relocation was carried out. (4) Where a relocation of a type referred to in subsection (3) results from action by a governmental authority, the cost of relocation may be accounted for in the manner set out in subsection (3). SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 42
42 (1) Where a plant unit of line pipe is replaced with other pipe in the same location, a company shall debit to the appropriate plant account the cost of opening and back filling the trench together with the cost of hauling, laying and connecting the pipe, the cost of removing retired pipe from the trench and other costs of pipeline construction. (2) The cost of reconditioning line pipe not removed shall be accounted for as repairs and not as retirements or replacements.
Oil Pipeline Uniform Accounting Regulations — 43
43 (1) Where plant is no longer required for pipeline purposes but is retained by the company, its book cost shall be transferred to account 34 (Other Plant) and the accumulated depreciation or accumulated amortization, if any, with respect thereto shall be transferred from account 31 (Accumulated Depreciation — Transportation Plant) or account 32 (Accumulated Amortization — Transportation Plant) to account 35 (Accumulated Depreciation — Other Plant) or to account 40 (Accumulated Amortization — Other Plant), as applicable. (2) Where depreciable other plant included in account 34 (Other Plant) is retired or sold, the book cost, salvage and removal costs shall be recorded in account 35 (Accumulated Depreciation — Other Plant). (3) Where the gain or loss from the sale or retirement of depreciable other plant is material, the company shall inform the Regulator and shall transfer the amount of the gain or loss from account 35 (Accumulated Depreciation-Other Plant) or account 40 (Accumulated Amortization-Other Plant) to account 402 (Extraordinary Income) or to account 422 (Extraordinary Income Deductions), as applicable. (4) Where the gain or loss from the sale or retirement of depreciable other plant included in account 34 (Other Plant) is not material, the company shall transfer the amount of the gain or loss from account 35 (Accumulated Depreciation — Other Plant) or account 40 (Accumulated Amortization — Other Plant) to account 410 (Other Income) or to account 420 (Other Income Deductions), as applicable. SOR/86-999, s. 7 SOR/2020-50, s. 4
Oil Pipeline Uniform Accounting Regulations — 44
44 (1) Where land is retired or sold, account 30 (Transportation Plant), account 34 (Other Plant), or account 38 (Transportation Plant Leased to Others) shall be credited with the book cost of the land. (2) Where the gain or loss from the sale or retirement of land is material the company shall inform the Regulator and shall transfer the amount of the gain or loss to account 402 (Extraordinary Income) or to account 422 (Extraordinary Income Deductions), as applicable. (3) Where the gain or loss from the sale or retirement of land is not material, the company shall transfer the amount of the gain or loss to account 410 (Other Income) or to account 420 (Other Income Deductions), as applicable. SOR/86-999, s. 8 SOR/2020-50, s. 4
Oil Pipeline Uniform Accounting Regulations — 45
45 The cost of repairs recorded in the maintenance accounts for transportation plant shall include (a) the cost of inspection to determine the repairs that are necessary; (b) the cost of adjusting, repairing or replacing parts; and (c) the cost of inspection, testing and running of parts to determine whether or not the repairs have been properly made and the repaired item is ready for service.
Oil Pipeline Uniform Accounting Regulations — 46
46 (1) Maintenance accounts kept in accordance with Schedule VI shall be debited with the costs of repairing and maintaining plant and shall include (a) incidental costs including the construction and removal of false work in connection with maintenance; (b) the cost of relocating pipeline plant where retirement accounting for units of plant is not involved; (c) the cost of raising or lowering line pipe in the trench where retirement accounting for units of plant is not involved; (d) the cost of repairing fences, sidewalks, driveways and streets within or adjacent to the plant; and (e) the cost of installing, maintaining and removing temporary facilities to prevent any interruptions in operations. (2) Where employees whose pay is normally debited to transportation expenses (a) mow and beautify grounds and buildings, (b) periodically restore seasonal features such as gardens, shrubbery and lawns, or (c) clear and remove snow, ice and fallen timber, their pay and any other costs arising from such employment may be debited to the maintenance or transportation account, at the option of the company.
Oil Pipeline Uniform Accounting Regulations — 47
47 Where a company prepares a budget for its maintenance expenses for a fiscal year, the following procedure may be followed: (a) the actual monthly expenses shall be debited to the appropriate maintenance accounts; (b) the excess of an actual expense over a budgeted monthly expense shall be debited to account 73 (Maintenance Expense Equalization) and credited to account 610-7 or 710-7 (Equalization — Plant); (c) the excess of a budgeted expense over an actual monthly expense shall be debited to account 610-7 or 710-7 (Equalization — Plant) and credited to account 73 (Maintenance Expense Equalization); and (d) at the end of the fiscal year, the balance in account 73 (Maintenance Expense Equalization) shall be transferred to account 610-7 or 710-7 (Equalization — Plant).
Oil Pipeline Uniform Accounting Regulations — 48
48 In sections 49 to 57, group system means a system by which a weighted average rate of depreciation is calculated for a particular group of plant accounts, a plant account, or a group of assets within a plant account, and established in recognition of the fact that some part of the investment in a group of assets may be recovered through salvage realization and that there will be variations in the service lives of the assets constituting the group, even among assets of the same class; ( système d’amortissement par catégorie ) service life means the period of time between the placement of plant in service and its retirement for accounting purposes; ( durée d’utilisation ) service value means the book cost of plant minus the estimated net salvage value of that plant. ( valeur de service )
Oil Pipeline Uniform Accounting Regulations — Oil Pipeline Uniform Accounting Regulations
group system means a system by which a weighted average rate of depreciation is calculated for a particular group of plant accounts, a plant account, or a group of assets within a plant account, and established in recognition of the fact that some part of the investment in a group of assets may be recovered through salvage realization and that there will be variations in the service lives of the assets constituting the group, even among assets of the same class; ( système d’amortissement par catégorie )
Oil Pipeline Uniform Accounting Regulations — Oil Pipeline Uniform Accounting Regulations
service life means the period of time between the placement of plant in service and its retirement for accounting purposes; ( durée d’utilisation )
Oil Pipeline Uniform Accounting Regulations — Oil Pipeline Uniform Accounting Regulations
service value means the book cost of plant minus the estimated net salvage value of that plant. ( valeur de service )
Oil Pipeline Uniform Accounting Regulations — 49
49 (1) Under the group system, in the case of an ordinary retirement of an individual asset in a group of assets, the accumulated depreciation attributable to the asset shall, for the purposes of these Regulations, be considered to be equal to the cost of the asset minus any amount that may reasonably be recoverable through salvage realization, whether or not the actual service life of the asset is shorter or longer than the anticipated average service life for the group. (2) Individual assets, within a group of assets, remaining in use after reaching their average service life expectancy shall not be regarded as fully depreciated until actual retirement or until the group is fully depreciated, whichever is earlier.
Oil Pipeline Uniform Accounting Regulations — 50
50 (1) Charges for depreciation with respect to accounts that are classed by section 51 as being accounts covering assets that are depreciable shall be computed in conformity with the group system. (2) A company shall charge depreciation by using such one of the following methods as is chosen by the company and approved by the Commission for use by the company: (a) the straight line method; (b) the use or unit of production method; (c) the diminishing value method; or (d) any other systematic method consistent with generally accepted accounting principles. SOR/86-999, s. 9 SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 51
51 All plant accounts, with the exception of accounts 101, 151 and 171 (Land), are classed as accounts covering assets that are depreciable and, for the purpose of the group system of depreciation accounting, depreciable asset accounts may be grouped according to the nature of the plant included in each account.
Oil Pipeline Uniform Accounting Regulations — 52
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 Commission, 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 of 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 30 (Transportation Plant) or account 38 (Transportation Plant Leased to Others) shall be debited to account 414 (Depreciation). (7) Depreciation on assets included in account 34 (Other Plant) shall be debited to account 412 (Other Expenses). SOR/86-999, s. 10 SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 53
53 (1) A separate depreciation rate shall be used in computing depreciation charges for each group of plant accounts, each plant account or each group of assets within a plant account. (2) In determining the rate of depreciation, consideration shall be given to all relevant factors including variations in use, increasing obsolescence or inadequacy. (3) Each depreciation rate used shall be approved by the Commission but where no rate has previously been approved for any class of plant, an interim rate as estimated by the company shall be used. SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 54
54 (1) As soon as the information can be assembled, a company shall file with the Regulator depreciation rates estimated to be appropriate for each group of plant accounts, each plant account or each group of assets within a plant account. (2) The rates referred to in subsection (1) shall be based on the service value and estimated service life of plant, as developed by a study of the company’s history and experience and such engineering and other information as may be available with respect to future operating conditions. (3) The rates referred to in subsection (1) shall be established to produce a charge for depreciation equal to the sum of the amounts that would otherwise be chargeable as depreciation for each of the various classes of plant included in a group of plant accounts, for each plant account or for each group of assets within a plant account. (4) The rates referred to in subsection (1) may be developed by a company by the method deemed most appropriate for the portrayal of the depreciation experienced and, when filed, shall be accompanied by a statement showing their bases and the methods employed in their computation. (5) A company shall, at any time, upon direction of the Commission, conduct a study on the suitability of depreciation rates in use in the light of the company’s history and available engineering data, and shall submit to the Commission for approval a report of the results of such study together with recommendations for any desired changes in depreciation rates. SOR/2020-50, s. 4 SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 55
55 (1) Where, in the opinion of a company, depreciation rates that have been filed with the Regulator are no longer applicable, the company shall file revised rates with the Commission for approval. (2) Where a company acquires plant for which no depreciation rates have been approved by the Commission, the company shall immediately compile and submit to the Regulator its estimate of the appropriate depreciation rates, developed in accordance with the provisions of sections 53 and 54. SOR/2020-50, s. 2
Oil Pipeline Uniform Accounting Regulations — 56
56 (1) Accumulated depreciation shall be subdivided to show separately the amount applicable to (a) each group of plant accounts, (b) each plant account, or (c) each group of assets within a plant account, for which a separate weighted average rate of depreciation has been established. (2) Where the amount is material, accumulated depreciation applicable to the assets in one depreciation group shall not be transferred by a company to another depreciation group without the approval of the Commission. SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 57
57 (1) A company shall keep records of depreciable plant and plant retirements in sufficient detail to show the service life of plant that has been retired and to permit the service life of plant to be estimated by the use of the mortality method or other appropriate method. (2) The records referred to in subsection (1) shall reflect, for each group of depreciable plant in respect of which a separate depreciation rate has been established, the percentage of the value of salvage from plant retired from that group. (3) Where the amount is material, assets shall not be transferred from a group of plant accounts, plant account or group of assets within a plant account to another group of plant accounts, plant account or group of assets within a plant account without the approval of the Commission. SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 58
58 For the purposes of sections 59 and 60, amortization means the gradual extinguishing of an amount included in account 30 (Transportation Plant), account 38 (Transportation Plant Leased to Others) or account 34 (Other Plant), by distributing such amount over a fixed period or over the estimated remaining life of the plant.
Oil Pipeline Uniform Accounting Regulations — 59
59 Where it is anticipated by a company that plant will be abandoned owing to the exhaustion of a particular source of traffic, obsolescence or any other cause, the company shall not change from depreciation accounting to amortization accounting without first obtaining the authorization of the Commission. SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 60
60 (1) The monthly debits for amortization of transportation plant included in account 30 (Transportation Plant), account 36 (Improvements to Leased Facilities) and account 38 (Transportation Plant Leased to Others) shall be debited to account 423 (Amortization). (2) Amortization on assets included in account 34 (Other Plant) shall be debited to account 412 (Other Expenses).
Oil Pipeline Uniform Accounting Regulations — 61
61 (1) Insurance premiums paid to insurance companies shall be debited to account 630-14 or 730-14 (Insurance), unless the premiums are chargeable to clearing accounts or relate to (a) the construction of pipeline facilities; or (b) employee benefits. (2) Insurance costs relative to the construction of pipeline facilities shall be debited pro rata to the appropriate plant accounts. (3) Insurance costs relative to employee benefits shall be debited to account 630-13 or 730-13 (Employee Benefits). (4) Any amount recovered from the insurance referred to in subsection (1), (2) or (3) shall be credited to the account or accounts originally debited with the related loss or expense. (5) Where a company elects to create and maintain reserves for self-insurance, account 630-14 or account 730-14 (Insurance) shall be debited with estimated amounts in lieu of commercial insurance premiums, and account 72 (Insurance Appropriations) shall be credited with the estimated amounts. (6) A schedule of risks covered by self-insurance shall be kept showing the character of risk and the rates used to compute the estimated amounts referred to in subsection (5). (7) The rates referred to in subsection (6) shall not exceed commercial rates for the same protection. (8) Where, as a result of an event or accident covered by self-insurance, costs are incurred of a type that would normally be debited to an expense account, such costs shall be debited to the insurance appropriations account and any excess of the expenditure over the applicable self-insurance shall be debited to the appropriate expense account. (9) Where the self-insurance schedule referred to in subsection (6) covers the retirement of plant, the accounting for the retirement shall be as outlined in section 36 and the self-insurance applicable to the retired item shall be transferred from account 72 (Insurance Appropriations) to account 31 (Accumulated Depreciation — Transportation Plant) or to account 32 (Accumulated Amortization — Transportation Plant), as applicable. (10) Where a company insures with a commercial insurance company any risks covered by self-insurance, the premiums for the insurance policy shall be debited to the insurance appropriations account and any recoveries under the policies shall be credited thereto.
Oil Pipeline Uniform Accounting Regulations — 62
62 (1) Cash, securities or other assets set aside for a specific purpose shall be debited to account 22 (Sinking Funds), account 23 (Miscellaneous Special Funds), or account 3 (Special Deposits), as applicable, and the appropriate asset account shall be credited. (2) Income from assets held in account 22 (Sinking Funds) and account 23 (Miscellaneous Special Funds) shall be credited to account 407 (Income from Sinking and Other Funds). (3) Where a mortgage or any contractual obligation entered into by a company requires that income from assets held in a fund be added to that fund, the company shall make the necessary transfer to the fund account. (4) Where a transfer referred to in subsection (3) is to account 23 (Miscellaneous Special Funds), and represents a company’s contribution to account 70 (Welfare and Pension Appropriations) or to account 72 (Insurance Appropriations), the company shall concurrently debit account 420 (Other Income Deductions) and credit account 70 or 72, as applicable, with the amount transferred. (5) A company’s contribution to account 70 (Welfare and Pension Appropriations) or to account 72 (Insurance Appropriations) shall be provided by debits to expenses. (6) Where the gain or loss on the sale of assets recorded in account 22 (Sinking Funds) or account 23 (Miscellaneous Special Funds) is material, the company shall inform the Regulator and shall transfer the gain or loss to account 402 (Extraordinary Income) or to account 422 (Extraordinary Income Deductions), as applicable. (7) Where the gain or loss on the sale of assets referred to in subsection (6) is not material, the company shall transfer the gain or loss to account 407 (Income from Sinking and Other Funds) or to account 420 (Other Income Deductions), as applicable. SOR/86-999, s. 11 SOR/2020-50, s. 4