GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Oil Pipeline Uniform Accounting Regulations — 6
6 (1) A company’s accounting records shall provide sufficient particulars to show fully the facts pertaining to all entries made in the accounts. (2) A company shall maintain the applicable accounts listed in Schedules I to VI and may, in addition, keep subsidiary accounts for its own purposes. (3) The account numbers listed in Schedules I to VI shall be set out in the descriptive headings of the applicable ledger accounts, computer print-outs or other accounting records. (4) All transactions applicable to a month shall be recorded in the accounts for that month and, at the end of that month, trial balances of the accounts shall be prepared. (5) A company shall close its accounts at the end of each fiscal year. (6) Final accounting entries for each month shall be made not later than 30 days after the last day of the month, except that the final entries for the last month of each fiscal year may be made within a period not exceeding 90 days from the end of that last month. (7) The books, accounts and records referred to herein include not only accounting records in a limited technical sense, but all records such as minute books, stock books, reports, correspondence, memoranda, computer print-outs, tapes and card decks that may be useful in determining the history of or facts pertaining to any transaction. (8) The books, accounts and records shall be readily accessible for examination by representatives of the Regulator. (9) Where an oil pipeline is owned in undivided interest, the operator shall maintain all books, accounts and records in a manner that permits ready identification to the books, accounts and records of the beneficial owners of the pipeline. (10) All accounts required to be maintained pursuant to subsection (2) shall be retained until the expiration of one year after leave to abandon the operation of the pipeline has been granted by the Commission. SOR/83-250, s. 1; SOR/86-999, s. 2 SOR/2020-50, s. 4 SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 7
7 (1) Balance sheet accounts, set out in Schedule I as account series 1 to 93, shall, in respect of a company, disclose the company’s financial position at the balance sheet date. (2) The balance sheet accounts referred to in subsection (1) shall record assets, liabilities, capital stock, and retained earnings or deficit, as the case may be.
Oil Pipeline Uniform Accounting Regulations — 8
8 (1) Plant accounts, set out in Schedule II as account series 100, are subsidiary to balance sheet accounts 30 (Transportation Plant) and 38 (Transportation Plant Leased to Others), and shall be used to classify a company’s transportation plant. (2) Plant accounts shall be supported by subsidiary accounts that record the costs, by location, of (a) each major facility including each pumping station, main pipeline, receiving, storage and delivery facility; and (b) any other facility that is separately located. (3) Any installation or property not used in pipeline operations shall be recorded in balance sheet account 34 (Other Plant).
Oil Pipeline Uniform Accounting Regulations — 9
9 Retained earnings accounts, set out in Schedule III as account series 300, shall show a summary of all changes in balance sheet account 92 (Retained Earnings) for each year and shall include (a) the balance transferred from income for the year; (b) prior period adjustments; (c) miscellaneous retained earnings adjustments; (d) dividend appropriations; and (e) income tax applicable to retained earnings adjustments.
Oil Pipeline Uniform Accounting Regulations — 10
10 (1) Income accounts, set out in Schedule IV as account series 400, shall show a summary of a company’s revenue, expenses and extraordinary items. (2) A company shall inform the Regulator of all extraordinary items and shall record them in account 402 (Extraordinary Income) or account 422 (Extraordinary Income Deductions), as applicable. (3) A company’s net balance of income or loss shall be transferred to retained earnings at the end of each fiscal year. (4) In this section, extraordinary items means material gains or losses that are not typical of a company’s normal business activities, are not expected to occur regularly over a period of years and would not be considered as recurring factors in any evaluation of the ordinary operating process of the company. (5) For the purposes of this section, the following shall be applied in determining materiality: (a) items of a similar nature shall be considered in the aggregate and dissimilar items shall be considered individually; and (b) to qualify for inclusion as an extraordinary item, the item should exceed the greater of one per cent of the total operating revenue and 10 per cent of the balance transferred from income to account 302 for the year. SOR/86-999, s. 3 SOR/2020-50, s. 4
Oil Pipeline Uniform Accounting Regulations — 11
11 Operating revenue accounts, set out in Schedule V as account series 500, shall be used to classify all revenue of a company from pipeline operations and from operations incident thereto.
Oil Pipeline Uniform Accounting Regulations — 12
12 (1) Operating expense accounts, set out in Schedule VI as account series 600 and 700, shall show cost elements making up a company’s maintenance, transportation and general expenses pertaining to pipeline operations. (2) The operating expense accounts shall include a separate series of accounts for the following company service functions: (a) the gathering function; and (b) the trunk function. (3) The gathering function series of accounts referred to in paragraph (2)(a) shall include amounts in respect of the gathering and collection of oil from the oil fields, refineries or other sources and transportation of oil to the point of connection to meters or storage tanks or the intake side of the manifold at the trunk receiving site or station. (4) The trunk function series of accounts referred to in paragraph (2)(b) shall include amounts in respect of the transportation of oil from the receiving stations on the trunk line to the point of connection with the facilities of other pipelines and consignees. (5) Expenses common to the gathering and trunk accounts referred to in subsection (2) shall be equitably apportioned between them and supported by records showing the basis of the apportionment. (6) The operating expense accounts under the maintenance and transportation subheadings of Schedule VI shall be supported by subsidiary accounts recording the expenses, by location, of (a) each major facility including each pipeline district, pumping station, oil tank farm and warehouse; and (b) any other facility that is separately located. (7) The operating expense accounts under the general subheading of Schedule VI shall be supported by subsidiary accounts recording the expenses by location where practicable or by department.
Oil Pipeline Uniform Accounting Regulations — 13
13 (1) Where it is not possible to record expenditures directly to a particular expense or plant account, a company may maintain clearing accounts for recording the expenditures. (2) Amounts recorded in clearing accounts shall be regularly distributed to the appropriate expense or plant accounts on an equitable basis. (3) Any balances in the clearing accounts shall be substantially distributed before the end of each fiscal year except for any items held therein that relate to a future period. (4) The net monthly balance in clearing accounts shall be included in account 45 (Other Deferred Debits) or account 78 (Other Deferred Credits), as applicable. (5) Where an operator maintains clearing accounts for the purpose of distributing monthly balances to the beneficial owners of a pipeline, the accounts shall contain sufficient particulars to permit ready identification with the accounts of the beneficial owners.
Oil Pipeline Uniform Accounting Regulations — 14
14 (1) An item that appears in a representative list in any account in the schedules shall be included in the corresponding account of a company if the inclusion of the item is consistent with the text of the account. (2) A representative list shall be considered only as representative and not as excluding from an account any analogous component or item that is omitted from the list.
Oil Pipeline Uniform Accounting Regulations — 15
15 (1) A company shall record in the plant accounts the costs incurred to acquire or construct any plant. (2) Where the consideration given for plant referred to in subsection (1) is other than money, the money value of the consideration on the day the contract for the acquisition or construction comes into force shall be debited to the applicable accounts and a record of the actual consideration, in sufficient detail to identify it, shall be retained by the company. (3) Where a company purchases all or part of the existing facilities of another company, the purchasing company shall prepare and submit to the Commission for approval details of the proposed method of accounting for such purchase together with the company’s reasons for the proposed method of accounting. (4) Where the facilities referred to in subsection (3) are purchased from an affiliated company, the original cost of the facilities to the affiliated company and the accumulated depreciation applicable to the facilities to the date of purchase, as shown in the accounts of the affiliated company, shall be recorded in the accounts of the purchasing company. (5) Balance sheet account 39 (Transportation Plant Under Construction) shall be supported by subsidiary records that record separately each transaction for each project involving plant additions, replacements or relocations. (6) Where plant acquired by a company is constructed by or for that company, the costs to be recorded in the plant accounts shall include the elements of cost set out in sections 16 to 27 and section 29. SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 16
16 (1) Cost of labour for construction of plant shall include the amount paid for labour, including employee benefits, performed by the company’s employees. (2) Where the employees referred to in subsection (1) are specially assigned to construction work, their pay while so engaged shall be included in the cost of the work. (3) No charge shall be made to plant accounts for the pay of the company’s employees whose services in connection with construction are merely incidental, except as provided in section 26. (4) The allocation of travelling and other incidental expenses of the company’s employees shall be made to accounts on the same basis as the distribution of the pay of those employees.
Oil Pipeline Uniform Accounting Regulations — 17
17 (1) Cost of materials and supplies shall include the purchase price of materials and supplies at the point of free delivery, the cost of ad valorem taxes, inspection, transportation and, where appropriate, a suitable proportion of store expenses. (2) In determining the cost of materials and supplies, suitable allowance shall be made for all discounts allowed and realized on the purchase thereof. (3) In debiting the plant accounts with materials and supplies used, allowance shall be made for the value of (a) unused portions and other salvage; (b) the materials recovered from temporary pipe, scaffolding and other temporary structures used in construction; and (c) small tools recovered and usable for other purposes.
Oil Pipeline Uniform Accounting Regulations — 18
18 (1) Cost of special machine and heavy work equipment service shall include the cost of labour, material, depreciation, supplies and other costs incurred in maintaining and operating power shovels, scrapers, pile drivers, dredgers, ditchers, material loaders and similar equipment, and any amount paid to others for rent, operation and maintenance of such equipment. (2) Where a construction project necessitates the purchase of equipment to be used exclusively on the project until the project is completed, the cost of the equipment shall be debited to the accounts representing the cost of the project and while the cost remains so debited no debit shall be made to expenses for depreciation on the equipment. (3) The amount realized from any subsequent sale of equipment referred to in subsection (2), or the appraised value of any equipment retained after the completion of the project for which it was purchased, shall be credited to the accounts debited with the equipment’s cost. (4) The appraised value of equipment retained after the completion of the project for which it was purchased shall be debited to the appropriate plant account and, thereafter, for the purposes of accounting, that appraised value shall be considered as the cost of the equipment.
Oil Pipeline Uniform Accounting Regulations — 19
19 (1) Cost of transportation incurred in the construction of plant shall include the cost of transporting men, equipment and material and supplies used for construction purposes. (2) The cost of transportation of construction material to the point where material is received by the company shall be included, if practicable, in the cost of the material.
Oil Pipeline Uniform Accounting Regulations — 20
20 Cost of contract work shall include any amount paid for work performed under contract by other companies and individuals.
Oil Pipeline Uniform Accounting Regulations — 21
21 (1) Cost of insurance, injuries and damages shall include (a) the premiums paid for insuring plant during construction; (b) the costs incurred for protection against fire and wilful destruction of plant during construction; and (c) the costs incurred in respect of injuries to persons, damage to property of others and damage to plant incidental to construction. (2) Insurance recovered or recoverable for compensation for injuries to persons injured during the construction of plant shall be credited to the account or accounts to which such compensation is debited. (3) Insurance recovered or recoverable in respect of property damage incidental to the construction of plant shall be credited to the account or accounts debited with the cost of the damage. (4) Subject to subsection (5), any injury or damage incidental to the removal of a structure or part thereof shall be debited to the account recording the retirement costs of the structure. (5) Any injury or damage incidental to the removal of a structure or part thereof that is an encumbrance on newly acquired land by a company shall be included in the cost of that land.
Oil Pipeline Uniform Accounting Regulations — 22
22 Cost of privileges shall include compensation paid for the temporary use of public and private property in connection with a construction project.
Oil Pipeline Uniform Accounting Regulations — 23
23 Cost of engineering services shall include any amount paid to other companies, firms or individuals engaged by the company to plan, design, prepare estimates, supervise, inspect or give general advice and assistance in connection with a construction project.
Oil Pipeline Uniform Accounting Regulations — 24
24 Earnings and expenses during the construction of plant shall include all revenues derived during the construction period from property that is included in the cost of plant under construction and all expenses that are attributable to the revenues received.
Oil Pipeline Uniform Accounting Regulations — 25
25 Cost of rents shall include any amount paid for the use of construction quarters and office space occupied by construction forces.
Oil Pipeline Uniform Accounting Regulations — 26
26 (1) Cost of overhead during construction shall include engineering, supervision and administrative salaries and expenses, employee benefits, legal fees, taxes, shop service and other analogous items, to the extent that they may be reasonably considered to be plant costs. (2) Only actual and reasonable overhead costs shall be assigned to particular jobs or units. (3) The records supporting the entries for cost of overhead during construction shall show the total amount of each type of overhead expenditure capitalized in the year and the bases of distribution thereof.
Oil Pipeline Uniform Accounting Regulations — 27
27 (1) A company may, at its option, capitalize an allowance for funds used during construction. (2) An allowance for funds used during construction shall be calculated in accordance with the instructions set out in account 189 (Allowance for Funds Used During Construction), and may, at the option of the company, be prorated over the appropriate depreciable plant accounts. SOR/86-999, s. 4
Oil Pipeline Uniform Accounting Regulations — 28
28 (1) On the date that plant is placed in service the company shall cease to capitalize interest during construction on the plant and shall compute and charge to the appropriate account an amount representing depreciation as determined under sections 48 to 55. (2) The date that the plant is in service, for the purpose of subsection (1), shall not be later than the first day of the month following issuance of a Leave to Open Order by the Commission. SOR/86-999, s. 5 SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 29
29 (1) Elements of cost analogous to those defined in sections 16 to 27 may be included in the cost of plant. (2) The costs incurred in disposing of material excavated may be included as an element referred to in subsection (1).
Oil Pipeline Uniform Accounting Regulations — 30
30 (1) For the purposes of these Regulations, additions to plant shall include (a) increases in plant through purchase or construction of additional plant, (b) the replacement of existing plant units, and (c) the capitalization of major renewals to plant and, subject to the approval of the Commission, may include substantial improvements made to existing plant in order to make such plant more useful, more efficient, more durable or of greater capacity than the plant was when it was originally placed in service. (2) The cost of additions referred to in subsection (1) shall be debited to the appropriate plant accounts. (3) Typical elements of construction are set out in sections 16 to 27 and section 29. (4) All expenditures relevant to new construction shall be capitalized. (5) After the completion of initial construction, only the costs directly connected with additions or replacements of plant shall be capitalized. (6) All property charged within the plant accounts shall consist of plant units or minor items of plant. SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 31
31 (1) Each company shall establish its own list of plant units for each plant account. (2) A company’s list of plant units shall be filed with and be subject to the approval of the Commission. (3) Subject to the approval of the Commission, the list of plant units, as filed, may be revised and amended from time to time. (4) The cost of an additional plant unit shall be debited to the appropriate plant account. (5) The book cost of a plant unit retired, whether replaced or not, shall be credited to the appropriate plant account. (6) Where a plant unit is replaced, the book cost of the original plant unit shall be credited to the appropriate plant account and the cost of the replacement unit shall be debited to the appropriate plant account. SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 32
32 (1) Subject to section 33, the cost of a minor item of additional plant not constituting a replacement shall be debited to the appropriate plant account. (2) The cost of a minor item of plant that constitutes a replacement shall be debited to the appropriate expense account and the book cost of the minor item replaced shall not be adjusted. (3) The book cost of a minor item of plant retired and not replaced shall be credited to the appropriate plant account.
Oil Pipeline Uniform Accounting Regulations — 33
33 (1) Where a minor item of plant is acquired at a cost of less than $1,000, the cost shall be debited to expense. (2) A company shall not (a) combine unrelated items of plant for the purpose of excluding the items from the provisions of subsection (1); or (b) divide expenditures made under a general plan for related items that cost $1,000 or more per item into smaller parcels for the purpose of debiting capital items to expense. (3) With the approval of the Commission after the filing of a request by a company, the company may, for the purpose of its accounting, adopt a limit of less than the amount set out in subsection (1) for any class of plant. (4) No change may be made in the amount of a limit referred to in subsection (3) except with the prior approval of the Commission. SOR/2020-50, s. 5
Oil Pipeline Uniform Accounting Regulations — 34
34 (1) In this section, cost of renewals means the aggregate of (a) the cost of material, other than old parts remaining in a rebuilt plant unit, and (b) the cost of labour used in the rebuilding process, but does not include the cost of dismantling and repairing old parts that are re-used. (2) Subject to subsection (3), where the cost of renewals to parts of a plant unit exceeds 50 per cent of the new replacement cost of a plant unit of the same kind and class, the plant unit shall be considered as rebuilt. (3) Subsection (2) does not apply to the renewal of a plant unit where the new replacement cost of that unit would not exceed $120,000. (4) A rebuilt plant unit shall be accounted for as an addition and the old plant unit that the rebuilt plant unit replaced shall be accounted for as retired from service. (5) Subject to subsection (6), the charge to the appropriate plant account for a rebuilt plant unit shall be the aggregate of (a) the value of old parts remaining in the rebuilt plant unit; and (b) the cost of labour and material applied. (6) The cost of dismantling and repairing old parts used in the renewal of plant shall be debited to maintenance expense.
Oil Pipeline Uniform Accounting Regulations — 35
35 Where second-hand plant not previously owned by the company is acquired in a physical condition that necessitates extensive expenditures to bring it up to the standard required by the company, the expenditures shall be debited to the appropriate plant account.
Oil Pipeline Uniform Accounting Regulations — 36
36 (1) Where a plant unit, whether replaced or not, is retired from pipeline operations, the book cost of the plant unit shall be credited to the appropriate plant account. (2) Where a minor item of plant is retired and not replaced, the book cost of that item shall be credited to the appropriate plant account. (3) The book cost and the costs of removal of a depreciable plant unit or a depreciable minor item of plant retired and not replaced shall be debited to account 31 (Accumulated Depreciation — Transportation Plant) or to account 32 (Accumulated Amortization — Transportation Plant), as applicable. (4) The net salvage value of a plant unit retired or of a minor item of plant retired and not replaced shall be credited to the accumulated depreciation or accumulated amortization account referred to in subsection (3). (5) Each retirement project shall be supported by subsidiary records that show separately the details thereof.
Oil Pipeline Uniform Accounting Regulations — 37
37 Where the book cost of any retired plant is not recorded separately, the book cost of that plant shall be its appropriate share of the book cost of the entire group in which the particular plant is located.