Topic:"Asset Retirement Obligation" in M03154

GENERIC ACCOUNT ACTIVITY CODE STM (S) GAS (G) HYD (H) TRN (T) DIST (DP) GEN (P) WIND (W) Land and Land Rights Land 001 X X X X X X Land Rights 002 X X X X X X X Buildings, Structures & Grounds Buildings, Structures & Grounds 003 X X X X X...

AI summary This document provides a table listing various generic accounts related to land, buildings, equipment, and infrastructure, along with their associated activities and codes. It also includes a cross-reference to capital activities under the category '3350A'.

POLICY 02 Redundant assets should be retired from property, plant and equipment and, therefore, excluded from Formatted: Font: Not Italic ļ rate base 1 Formatted: Font: Not Italic PROCI EDURE 03 Assets that are identified as being redundan...

AI summary The document discusses the retirement of redundant assets from property, plant, and equipment, emphasizing their exclusion from the rate base. It references accounting sections that explain the treatment of asset retirements and transfers, highlighting procedures for managing redundant assets.

- 15 The following journal entries are required to record the equipment retirement and proceeds of disposal: DR CR 2-097-R72-xxx-xxxx (Original Cost) 2-200-R72-xxx-0000 (PP&E) 85,000 85,000 To record the original cost to be retired. DR 1-3...

AI summary The text outlines journal entries required for the retirement and disposal of equipment, including recording original costs, proceeds from sales, and accumulated depreciation. These entries are part of the process for closing a retirement work order after final costing.

17 Asset retirement obligations have been set up for the decommissioning of thermal and hydro sites. The liabilities should be reviewed and if there is an amount recorded to cover the cost of retiring the assets, the following entry should...

AI summary Asset retirement obligations (ARO) have been established for the decommissioning of thermal and hydro sites. If the liabilities are recorded to cover the cost of retiring the assets, a specific accounting entry is required to transfer the ARO for asset retirement costs.

Retirement of Land - 18 When land is disposed of, retirement accounts within a work order are used to remove its cost from the capital asset records. An example will demonstrate the journal entries required to retire land. Assume that a pi...

AI summary The document explains the process of retiring land from capital asset records when it is disposed of, using retirement accounts within a work order. An example is provided where land with an original cost of $5,000 is sold for $50,000, with $10,000 allocated for site cleanup costs.

- 19 The following retirement transactions are required to record the retirement of land, the site restoration costs and proceeds of disposal and recognize the gain on the sale: DR CR 2-097-R01-xxx-xxxx(Original Cost) 2-200-R01-xxx-x000 To...

AI summary The text outlines the accounting entries required for the retirement of land, including recording original costs, site restoration expenses, proceeds from the sale, and recognizing a gain on the sale. It also describes the closing entries made at the end of the year to finalize the retirement accounts.

09 Included in this activity is the present value of the future cost of site restoration associated with the Deleted: 10 equipment to the Company's buildings, dams and other facilities. Deleted: used primarily in the operation and maintena...

AI summary The text discusses accounting policies related to the present value of future site restoration costs for equipment at NSPI's buildings, dams, and other facilities. It also covers the accounting for reservoirs, dams, waterways, and district heating and cooling systems, including water piping networks and heat exchangers.

Retirement of Land - When land is disposed of, retirement accounts within a work order are used to remove its cost from the capital asset records. - 17 If the proceeds from the sale of land are greater than the cost of the land plus the re...

AI summary The text discusses the accounting procedures for retiring land and other assets, including the recognition of gains or losses based on the proceeds from the sale and the journal entries required to remove the asset's cost from capital records.

& lt;sup>3 Please refer to NSPI's Accounting Policy & Procedures Manual 6320 for a discussion of the Asset Retirement Obligations. Page 3: [1] Deleted ag986 8/7/2010 2:06:00 PM These are used to remove costs from the capital asset records....

AI summary The text provides an example of journal entries for retiring assets, including computer equipment and land, highlighting the accounting procedures for recording original costs, accumulated depreciation, salvage proceeds, and site restoration costs.

To record proceeds from sale of land. DR 2-098-R01-xxx-xxxx (Salvage) 50,000 CR 2-066-R01-xxx-xxxx (Other Goods & Services) 10,000 CR 2-097-R01-xxx-xxxx (Original Cost) 5,000 CR 1-195-000-000-0000(Gain / Lost on Asset Sales 35,000 GAIN OR...

AI summary This document records the financial transaction involving the sale of land, with a gain of $35,000. The proceeds are distributed across various accounts, including salvage, other goods and services, original cost, and the gain on asset sales.

Appendix A: 1530 ofEquity Regulated Return 2400 Employee Future Benefits 4200 Other Revenue 5300 Depreciation Expense 5800 Interest 5900 Income Taxes 6230 of Application Administrative and Vehicle Overhead (Self-constructed Assets) 6235 of...

AI summary The text presents a table with various financial and accounting-related categories, including equity, employee benefits, revenue, depreciation, interest, taxes, and asset retirement obligations. It also includes a heading for 'GENERAL INFORMATION' indicating additional content may follow.

DR 2-097-R01-xxx-xxxx(Original Cost) 5,000 CR 2-200-R01-xxx-x000 5,000 To record the original cost of land to be retired in a retirement work order. DR 2-066-R01-xxx-xxxx (Expense Account) 10,000 CR 1-530-000-000-0000 (Account Payable (A/P...

AI summary The text outlines accounting entries related to the retirement of land, including recording original costs, site restoration expenses, and proceeds from the sale of land. These entries are made as part of a work order process and are used to close retirement accounts at the end of the year.

DR 2-098-R01-xxx-xxxx (Salvage) 50,000 CR 2-066-R01-xxx-xxxx (Other Goods & Services) 10,000 CR 2-097-R01-xxx-xxxx (Original Cost) 5,000 CR 1-195-000-000-0000(Gain / Lost on Asset Sales 35,000

AI summary The document text presents a table with various entries related to financial matters, including salvage, other goods and services, original cost, and gain or loss on asset sales, with associated figures and references.

GENERIC ACCOUNT ACTIVITY CODE STM (S) GAS (G) HYD (H) TRN (T) DIST (DP) GEN (P) WIND (W) Land and Land Rights Land 001 Х Х Х Х Х Х Land and Land Highlis Land Rights 002 Х Х X Х х Х Х Buildings, Structures & Grounds Buildings, Structures &...

AI summary The document presents a table detailing various generic accounts, their associated activities, and codes. It includes categories such as land, buildings, equipment, and financial reporting systems, with specific codes and classifications for different types of assets and activities.

01 Cost Cost is the main component of most retirement work orders. Refer to NSPl's Accounting Policy & Procedures Manual 61 00 for a more detailed description of the items included in cost. The amounts that must be removed to record the de...

AI summary The document outlines the components of cost in retirement work orders, including removal costs, salvage value, and net salvage value. It explains how asset retirement obligations (AROs) are defined and the processes for recording retirement costs and salvage values in work orders.

1 FASB ASC 410-20-20 RETIREMENT AND DISPOSAL OF CAPITAL ASSETS - 6420

AI summary The document text provides a heading related to the retirement and disposal of capital assets under FASB ASC 410-20-20, indicating a focus on accounting standards for asset retirement obligations.

Appendix A: 1530 ofEquity Regulated Return 2400 Employee Future Benefits 4200 Other Revenue 5300 Depreciation Expense 5800 Interest 5900 Income Taxes 6230 of Application Administrative and Vehicle Overhead (Self-constructed Assets) 6235 of...

AI summary This section presents a table of financial and accounting-related line items, including equity, employee benefits, revenue, depreciation, interest, taxes, administrative overhead, asset retirement obligations, and long-term debt. It does not include detailed discussion or arguments.

PROCEDURES - O5 At a particular point in time, the balance in the accumulated depreciation accounts is comprised of the following amounts: - a. total depreciation expense taken to date; - b. total depreciation associated with the original...

AI summary The document outlines the components of the accumulated depreciation accounts, including total depreciation expense, decommissioning asset depreciation, accretion related to asset retirement obligations approved by the UARB, and adjustments for salvage allowances and retired asset costs.

Page 2: [1] Deleted ag986 11/17/2009 4:29:00 PM Asset Group Level of Detail Steam and Gas Turbine Production Plant Total by individual generating station Hydro Production Plant Total by individual hydro system Mass Property (Transmission,...

AI summary The document outlines the categorization of asset groups and their levels of detail, including Steam and Gas Turbine Production Plant, Hydro Production Plant, and Mass Property. It also mentions 'Deferred Charges,' indicating a focus on accounting and financial practices.

The following table summarizes the proposed changes to NSPI's Accounting Manual within Submission 3 by section: SECTION COMMENTS 5900: Income Taxes NSPI will use enacted rates under US GAAP versus substantively enacted under CGAAP to recog...

AI summary The text outlines proposed changes to NSPI's Accounting Manual under Submission 3, focusing on differences between US GAAP and CGAAP in the treatment of income taxes and asset retirement obligations. These changes may lead to timing differences in financial reporting and the treatment of Investment Tax Credits.

GENERIC ACCOUNT ACTIVITY CODE STM (S) GAS (G) HYD (H) TRN (T) DIST (DP) GEN (P) WIND (W) Land and Land Rights Land 001 X X X X X X Land Rights 002 X X X X X X X Buildings, Structures & Grounds Buildings, Structures & Grounds 003 X X X X X...

AI summary The document presents a table outlining various generic accounts and their associated activities, codes, and classifications across different sectors such as land, buildings, equipment, and infrastructure. It includes details on classifications for financial reporting purposes.

POLICY - A liability for an asset retirement obligation should be recognized when a reasonable estimate of fair value can be made. 2 - Upon initial recognition, the carrying amount of the related long-lived asset will be increased by the s...

AI summary The text discusses the accounting treatment of asset retirement obligations, stating that such liabilities should be recognized when a reasonable estimate of fair value can be made, and that changes in the liability should be accounted for over time and with revisions to estimates.

1 F A S B A S C 4 1 0 - 2 0 - 2 0 RETIREMENT AND DISPOSAL OF CAPITAL ASSETS - 6420

AI summary The document references the retirement and disposal of capital assets under the code 6420, which is related to accounting standards issued by the Financial Accounting Standards Board (FASB) and the Accounting Standards Codification (ASC). This topic is relevant to how capital assets are accounted for and disposed of in regulatory proceedings.

DEFINITION 01 An asset retirement obligation is an obligation associated with the retirement of a tangible longlived asset that an entity is required to settle as a result of an existing or enacted law, statute, ordinance, or written or or...

AI summary An asset retirement obligation is defined as a legal requirement to retire a tangible long-lived asset due to existing or enacted laws, contracts, or legal interpretations, such as promissory estoppel.

01 Cost Cost is the main component of most retirement work orders. Refer to NSPl's Accounting Policy & Procedures Manual 61 00 for a more detailed description of the items included in cost. The amounts that must be removed to record the de...

AI summary The text discusses the accounting treatment of asset retirement obligations, removal costs, salvage value, and net salvage value in the context of retirement work orders. It outlines how these costs are recorded, including the inclusion of labor, materials, and overhead, and their impact on accumulated depreciation.

GAIN OR LOSS ON DISPOSITION OF CAPITAL ASSETS - 6440

AI summary The document discusses the gain or loss on the disposition of capital assets, likely involving accounting standards and financial reporting practices related to asset retirement obligations and capital expenditures.