Government of Canada / Gouvernement du Canada
Symbol of the Government of Canada

Search

Oil Pipeline Uniform Accounting Regulations (C.R.C., c. 1058)

Regulations are current to 2024-05-01 and last amended on 2020-03-16. Previous Versions

Securities Issued (continued)

Company Long Term Debt Owned

  •  (1) Where any long term debt is reacquired and included in account 24 (Company Long Term Debt Owned), and the amount of the difference between the amount paid upon reacquisition and the par value plus the applicable unamortized premium or minus the applicable unamortized discount and expense, as the case may be, is not material, the amount of the difference shall be debited to account 420 (Other Income Deductions) or credited to account 410 (Other Income), as applicable.

  • (2) Where the amount of the difference referred to in subsection (1) is material, the company shall inform the Regulator and shall debit the amount of the difference to account 422 (Extraordinary Income Deductions) or credit the amount to account 402 (Extraordinary Income), as applicable.

Current Assets and Liabilities

Current Assets

  •  (1) Subject to subsection (2), current assets shall include cash and other assets that are not restricted from use for current operations and, in the normal course of operations, are expected to be converted into cash or consumed in the production of income within a one-year period.

  • (2) Materials and supplies shall be included in current assets notwithstanding that they may not be consumed in a one-year period.

  • (3) Current assets that are of doubtful value shall be written down or written off to the appropriate income or operating expense accounts to an extent required to adjust their value, but uncollectable accounts receivable shall be debited to account 75 (Allowance for Doubtful Accounts) to the extent that an allowance has been provided therefor.

Current Liabilities

  •  (1) Current liabilities shall include obligations that are payable on demand or that mature or become due within one year.

  • (2) Notwithstanding subsection (1), loans payable that have a maturity date within a one-year period and

    • (a) have been incurred primarily for the construction of plant, and

    • (b) will be replaced by long term financing,

    may be included in account 86 (Other Long Term Debt).

Accrued Assets and Liabilities

  •  (1) Where, during any month, a transaction has occurred that affects the accounts of a company but the amount involved cannot be determined with accuracy at the end of that month, the amount shall be estimated and included in the proper accounts, unless it would not appreciably affect the accounts.

  • (2) Where the actual amount involved in a transaction referred to in subsection (1) has been finally determined, the estimated amount referred to in that subsection shall be adjusted to show the actual amount.

  • (3) [Revoked, SOR/86-999, s. 20]

  • SOR/86-999, s. 20

Prior Period Adjustments

  •  (1) Where, in any fiscal year of a company, the amount of an adjustment to the income of a company for a prior fiscal year is material and the amount of the adjustment

    • (a) is specifically identified with and directly related to the business activities of a particular prior fiscal year,

    • (b) is not attributable to economic events or obsolescence occurring subsequent to the date of the financial statements for such prior fiscal year,

    • (c) depends primarily on decisions or determinations by persons other than the company, and

    • (d) could not be reasonably estimated prior to such decisions or determinations,

    the company shall inform the Regulator and shall record the amount of the adjustment in account 303 (Prior Period Adjustments).

  • (2) Where, in any fiscal year of a company, the amount of an adjustment to the income of a company for a prior fiscal year is not material, the company shall include the amount of the adjustment in the same accounts in which it would have been recorded if it had been recorded in that prior fiscal year.

  • (3) 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 a prior period 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.

Contingent Assets and Liabilities

  •  (1) [Revoked, SOR/86-999, s. 22]

  • (2) The par value of securities or the total value of other obligations for which a company with other parties is jointly and severally liable shall be stated as a liability only in the amount that was not primarily assumed by the other parties under the terms of the agreement by which the company and the other parties become jointly and severally liable.

  • (3) The amount by which the value referred to in subsection (2) exceeds the liability stated or subsequently established according to the agreement, shall be shown as a contingent liability.

  • SOR/86-999, s. 22

Affiliated Companies

  •  (1) For the purposes of these Regulations, one company is affiliated with another company if one of them is the subsidiary of the other or both are subsidiaries of the same company or each of them is controlled by the same person.

  • (2) For the purposes of these Regulations, a company is a subsidiary of another company if

    • (a) it is controlled by

      • (i) that other company,

      • (ii) that other company and one or more companies each of which is controlled by that other company, or

      • (iii) two or more companies each of which is controlled by that other company; or

    • (b) it is a subsidiary of a company that is subsidiary to that other company.

  • (3) For the purposes of these Regulations, a company is controlled by another company or person or by two or more other companies if

    • (a) shares of the company carrying more than 50 per cent of the votes for the election of directors are held, otherwise than by way of security only, by or for the benefit of that other company or person or by or for the benefit of such other companies; and

    • (b) the votes carried by shares referred to in paragraph (a) are sufficient, if exercised, to elect a majority of the board of directors of the company.

Oil Accounting

Allowance Oil Accounting

  •  (1) A company shall record any amounts earned as a result of its tariff relating to oil allowances covering losses due to shrinkage or other factors.

  • (2) Oil allowances referred to in subsection (1) shall be valued at not more than the market value at point of delivery and shall be debited to account 9 (Oil Inventory) and concurrently shall be credited to account 505 or 555 (Allowance Oil Revenue).

  • (3) Gains in oil allowances resulting from pumping, temperature corrections or other factors shall be debited to account 9 (Oil Inventory) and credited to account 505 or 555 (Allowance Oil Revenue).

  • (4) Shortages in oil allowances shall be debited to account 505 or 555 (Allowance Oil Revenue) and credited to account 9 (Oil Inventory).

  • (5) Where, at balance sheet date, the debits to account 505 or 555 (Allowance Oil Revenue) exceed the credits, the net debit shall be debited to account 620-8 or 720-8 (Oil Loss).

General Oil Accounting

  •  (1) Where the operations of a company have consumed oil that has been accounted for by a debit to account 9 (Oil Inventory), that account shall be credited and account 620-2 or 720-2 (Operating Fuel and Power) shall be debited with the oil at the value of the inventory of oil carried in account 9.

  • (2) Oil lost through line breaks or other extraordinary circumstances shall be accounted for by debiting account 620-8 or 720-8 (Oil Loss) and crediting account 9 (Oil Inventory), and purchases of oil to replenish shortages or losses shall be accounted for by debiting account 9.

  • (3) Where a company requires part of its oil inventory to provide an operating oil supply, account 33 (Operating Oil Supply) shall be debited and account 9 (Oil Inventory) shall be credited with the value of the oil so required and the oil shall be priced at the value at which it is carried in inventory.

  • (4) Sales of oil shall be accounted for by a credit to account 9 (Oil Inventory) or account 33 (Operating Oil Supply), as applicable, and the difference between the selling price and the value at which the oil is recorded in account 9 or 33 shall be debited or credited, as applicable, to account 620-8 or 720-8 (Oil Loss).

 

Date modified: