Cost of Transportation
(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.
Cost of Contract Work
20 Cost of contract work shall include any amount paid for work performed under contract by other companies and individuals.
Cost of Insurance, Injuries and Damages
(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.
Cost of Privileges
22 Cost of privileges shall include compensation paid for the temporary use of public and private property in connection with a construction project.
Cost of Engineering services
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.
Earnings and Expenses During Construction
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.
Cost of Rents
25 Cost of rents shall include any amount paid for the use of construction quarters and office space occupied by construction forces.
Cost of Overhead During Construction
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.
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.
Date Placed in Service
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 Board.
- SOR/86-999, s. 5.
Analogous Elements of Cost
(2) The costs incurred in disposing of material excavated may be included as an element referred to in subsection (1).
Additions to Plant
(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 Board, 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.
(2) A company’s list of plant units shall be filed with and be subject to the approval of the Board.
(3) Subject to the approval of the Board, 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.
Minor Items of Plant
(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.
(2) A company shall not
(3) With the approval of the Board 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 Board.
(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
(6) The cost of dismantling and repairing old parts used in the renewal of plant shall be debited to maintenance expense.
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