N-1Nova Scotia Power Inc. - Accounting Policy and Procedure Manual 5/14/2010
11 passages
02 Debt Issue Costs The issue of long-term debt is usually an involved process in which the Company may retain the services of brokers, lawyers and auditors. Since the cost of using these services can be significant and provide future bene...
AI summary The text explains that long-term debt issuance involves costs like brokers, lawyers, and auditors. GAAP allows deferring significant costs (premiums, discounts, commissions) over the debt's life, with the remainder expensed as bank charges.
INTEREST - 5800 - 06 Debt issue costs should be deferred and amortized on a straight-line basis over the term of the related debt. - 07 Costs associated with the defeasance of NSPFC long-term debt should be deferred and amortized over the...
AI summary The text outlines two accounting treatment proposals: deferring and straight-line amortizing debt issue costs over the debt term, and deferring and amortizing NSPFC long-term debt defeasance costs over the remaining debt life. These relate to cost deferral and depreciation/amortization practices.
DEFINITION 01 Rate-regulated enterprises such as NSPI have to consider the impact of accounting decisions on revenue requirements and rate stability. If a regulatory authority approves the recovery of certain costs over a period of years i...
AI summary This section discusses how rate-regulated enterprises like NSPI account for deferred costs and their recovery through rates, emphasizing the recording of deferred amounts as a deferred asset and the matching of expenses to benefits through amortization.
POLICY - 02 Certain large operating expenditures incurred by NSPI may be considered material , and eligible for deferral and amortization, subject to the approval of the UARB. These costs are deferred and amortized over the approved period...
AI summary NSPI may defer and amortize certain large operating expenditures over an approved period, rather than expensing them in the year incurred, with the approval of the UARB. Materiality levels for major expenditures are outlined in Section 1560A.
DEFINITIONS - 01 Greenhouse gas emission credit expenditures include costs associated with the acquisition of option credits or investments in projects that would produce emission reduction credits. - 02 Appropriate expenses include those...
AI summary The document outlines policies for handling greenhouse gas emission credit expenditures by NSPI, including when they should be expensed or deferred. It also discusses the conditions under which deferred costs should be charged to fuel expense, such as when credits are used to reduce penalties, sold, or when the benefit is no longer valid.
PROCEDURES 07 Greenhouse gas emission credits should be charged at cost to an operating project. An Operating Project Approval Form can be obtained from Corporate Accounting Services (CAS). CAS will assign a new project number to collect c...
AI summary The document outlines procedures for charging greenhouse gas emission credits to operating projects and obtaining approval for project cost deferrals. Projects are tracked separately and require an approved Business Case for deferral approval.
DEFERRED CHARGES
AI summary The section discusses deferred charges, which are financial obligations that have been recognized but not yet paid. These charges are typically related to costs incurred by utility companies that are not immediately reflected in their financial statements.
POLICIES - 06 Costs associated with severance programs should be accrued at the date management commits to a staff reduction plan and a reasonable estimate can be made of the amounts involved. - 07 Where the total cost of a severance progr...
AI summary The document outlines policies for accounting for severance program costs. If the cost is less than 0.25% of the annual revenue requirement, it should be expensed immediately. If it exceeds this threshold, the costs should be deferred and amortized over three years.
PROCEDURES - 09 The total expected cost of a severance program should be accrued in the year that management commits to a staff reduction plan and the benefit arrangement has been communicated to the employees. - 10 If the program's total...
AI summary The document outlines procedures for accruing and accounting for the costs of severance programs. It specifies thresholds for charging costs to operations versus recording them as deferred assets, along with guidelines for amortization and liability reduction.
POLICIES - 04 All costs associated with the development of new business should be expensed, in an operating project, until such time as it can be clearly demonstrated that the project will be viable and the Controller, NSPI has authorized...
AI summary The document outlines policies regarding the expensing and deferral of costs associated with new business development at NSPI. Costs are to be expensed until viability is confirmed and authorization is granted for deferral. Deferred costs are excluded from the regulated rate base and should be amortized over five years. Periodic reviews are required to ensure continued viability of deferred costs.
- 11 Once the project has been determined as viable, as supported by an approved Business Case, the Controller, NSPI can approve the deferral of existing and future project costs. 6 See Policy 6940A DEFERRED CHARGES
AI summary The text discusses the deferral of project costs by the Controller at NSPI, contingent upon the approval of a Business Case. It also references Policy 6940A and mentions 'Deferred Charges'.
N-6Second Filing of Revisions - NSPI Accounting Policy and Procedures Manual 9/15/2010
3 passages
POLICIES - The Company accrues a liability for termination costs associated with severance programs consistent with the requirements of FASB ASC Topic 420 Exit or Disposal Cost Obligations or ASC Topic 712 Compensation Nonretirement Post R...
AI summary The Company accrues liabilities for termination costs under FASB ASC Topics 420 and 712, recognizing these costs when they are determinable and unavoidable. The treatment of these costs depends on the type of termination benefit and the program's cost relative to annual revenue requirements. Costs below 0.25% of annual revenue are expensed immediately, while higher costs are deferred and amortized over three years.
DEFERRED CHARGES TERMINATION COSTS - 6930 Deleted: SEVERANCE Regulatory decisions allowing the recovery of deferred costs through future rates create a future economic benefit or asset equal to the deferred amounts. Amortization matches th...
AI summary The text discusses the amortization of deferred costs from severance programs over a three-year period, aligning the cost with future cost savings. This approach ensures that the recovery of these costs through future rates matches the economic benefit they provide.
PROCEDURES - O7 The total expected cost of a severance program should be accrued in the year that conditions for recognition are met based on the type of benefit offered as outlined in paragraph 2. - 08 If the program's total expected cost...
AI summary The document outlines procedures for accounting for severance program costs. If the total expected cost is less than 0.25% of annual revenue requirement, costs are expensed immediately. If greater, costs are deferred and amortized over three years. This aligns with accounting standards and involves considerations such as employee termination, pension costs, and legal expenses.
06394Board Order 2/16/2011
6 passages
GENERAL - 01 Nova Scotia Power Inc. ("NSPI") is the primary operating subsidiary of Emera Inc, a diversified energy company based in Halifax, Nova Scotia - 02 For financial reporting purposes, NSPI is organized into cost centers and has sp...
AI summary Nova Scotia Power Inc. (NSPI) is a subsidiary of Emera Inc. and operates under a Cost Allocation Policy that ensures fair distribution of corporate support services and general expenses between NSPI and its affiliates, aligning with accounting principles.
DEFINITIONS - 28 For the purpose of the Cost Allocation Policy and interpretation of this Policy, the following definitions will apply. - 29 Affiliate The Nova Scotia Companies Act defines an Affiliate as: - (1) A company shall be deemed t...
AI summary This section defines key terms related to cost allocation and corporate structure under the Cost Allocation Policy. It outlines definitions such as 'Affiliate,' 'Corporate Support Service,' 'Cost Allocation,' 'Cost Driver,' 'Common Costs,' and 'Direct Costs' to ensure clarity in interpreting and applying the policy.
FINANCING CHARGES - 5800 04 Debt issue costs should be deferred and amortized using the effective interest rate method over the term of the related debt.
AI summary The text discusses the proper accounting treatment for debt issue costs, recommending that they be deferred and amortized using the effective interest rate method over the term of the related debt.
POLICY - 01 Rate-regulated enterprises such as Nova Scotia Power Inc. ("NSPI") have to consider the impact of accounting decisions on revenue requirements and rate stability. If a regulatory authority approves the recovery of certain costs...
AI summary The text discusses how Nova Scotia Power Inc. (NSPI) accounts for costs and revenue requirements under regulatory oversight. It outlines the deferral and amortization of large operating expenditures, the use of a Fuel Adjustment Mechanism (FAM), and the application of ASC 980 for rate-regulated accounting policies approved by the Nova Scotia Utility and Review Board (UARB).
POLICIES - 01 The Company accrues a liability for termination costs associated with severance programs consistent with the requirements of FASB ASC Topic 420 - Exit or Disposal Cost Obligations orASC Topic 712 - Compensation - Nonretiremen...
AI summary The document outlines the accounting treatment for termination costs associated with severance programs. It references FASB ASC topics and describes conditions under which liabilities are recognized, including one-time, special, and contractual termination benefits. The Company defers costs exceeding 0.25% of annual revenue requirement and amortizes them over three years.
DEFERRED CHARGES TERMINATION COSTS - 6930 06 Regulatory decisions allowing the recovery of deferred costs through future rates create a future economic benefit or asset equal to the deferred amounts. Amortization matches the cost of that a...
AI summary The document outlines the accounting treatment for deferred charges related to termination costs in severance programs. It explains how costs should be accrued, when they should be recorded as deferred assets, and how they should be amortized over three years to match the cost with future savings.
05338Letter request Board review Batch 3 revisions. 9/24/2010
5 passages
FINANCING CHARGES - 5800 Deleted: INTEREST 04 Debt issue costs should be deferred and amortized using the effective interest rate method over the term of the related debt.
AI summary The document discusses the treatment of debt issue costs, recommending that they be deferred and amortized over the term of the related debt using the effective interest rate method.
ASSETS - NOT USED AND USEFUL - 6350 Assets not currently used, but expected to be used in providing service in the future will provide value to customers at a future date. Accordingly, the cost of the asset is to be matched to the future p...
AI summary The document discusses the accounting treatment of assets not currently used but expected to be used in the future. It outlines that the cost of such assets should be matched to future periods when they provide value. Excess costs may be written off or deferred with UARB approval, and depreciation is deferred until the asset is returned to service. Maintenance costs during the out-of-service period are expensed as incurred, with some exceptions for significant costs that may be deferred.
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.
POLICY - Rate-regulated enterprises such as Nova Scotia Power Inc. ("NSPI") have to consider the impact of accounting decisions on revenue requirements and rate stability. If a regulatory authority approves the recovery of certain costs in...
AI summary This section discusses how Nova Scotia Power Inc. (NSPI) accounts for costs that are deferred and amortized under regulatory approval, particularly large operating expenditures and the Fuel Adjustment Mechanism (FAM). These deferrals are recorded as regulatory assets or liabilities, and their amortization is matched to rate recovery or reductions.
Page 1: [6] Deleted AI141 9/15/2010 1:53:00 PM - 17 Depending on interest rates prevailing at the time of defeasance of the Matching Notes, the Company may incur costs to effect such defeasance including, but not limited to, (i) the differ...
AI summary The document outlines the potential costs incurred by the Company during the defeasance of Matching Notes, including the difference between the cost of acquiring Defeasance Assets and the principal amount of the notes, as well as fees and transaction costs. It also describes how these costs will be amortized and the Company's right to sell and replace Defeasance Assets.
06394Board Order 2/16/2011
6 passages
GENERAL - 01 Nova Scotia Power Inc. ("NSPI") is the primary operating subsidiary of Emera Inc, a diversified energy company based in Halifax, Nova Scotia - 02 For financial reporting purposes, NSPI is organized into cost centers and has sp...
AI summary Nova Scotia Power Inc. (NSPI) is a subsidiary of Emera Inc. and operates under a Cost Allocation Policy that ensures fair allocation of corporate support services and general expenses between NSPI and its affiliates, in line with accounting principles.
FINANCING CHARGES - 5800 04 Debt issue costs should be deferred and amortized using the effective interest rate method over the term of the related debt.
AI summary The document discusses the appropriate treatment of debt issue costs, stating that they should be deferred and amortized using the effective interest rate method over the term of the related debt.
POLICY - 01 Rate-regulated enterprises such as Nova Scotia Power Inc. ("NSPI") have to consider the impact of accounting decisions on revenue requirements and rate stability. If a regulatory authority approves the recovery of certain costs...
AI summary This section discusses the accounting practices of Nova Scotia Power Inc. (NSPI) under regulatory oversight, including the deferral and amortization of large operating expenditures, the use of the Fuel Adjustment Mechanism (FAM), and the application of ASC 980 for rate-regulated accounting policies approved by the Nova Scotia Utility and Review Board (UARB).
POLICIES - 01 The Company accrues a liability for termination costs associated with severance programs consistent with the requirements of FASB ASC Topic 420 - Exit or Disposal Cost Obligations orASC Topic 712 - Compensation - Nonretiremen...
AI summary The document outlines the Company's accounting policy for accruing liabilities related to termination costs under FASB ASC Topics 420 and 712. It specifies when liabilities are recognized, how costs are expensed or deferred based on their impact on revenue and rate stability, and the conditions under which costs are amortized over a three-year period.
DEFERRED CHARGES TERMINATION COSTS - 6930 06 Regulatory decisions allowing the recovery of deferred costs through future rates create a future economic benefit or asset equal to the deferred amounts. Amortization matches the cost of that a...
AI summary The text discusses the accounting treatment of deferred charges related to severance programs, including when costs should be accrued, how they are recorded, and the amortization process over three years to align with future cost savings.
POLICY - 01 Long-term debt issued by the Company is reported net of long-term debt payable in one year, as long-term debt on the balance sheet of its financial statements. Detail of the long-term debt issued by the Company are reported in...
AI summary The document outlines the accounting treatment of long-term debt and related financial instruments, including the reporting of commercial paper, debentures, and medium-term notes, as well as the deferral and recovery of debt defeasance costs by the Company, with approval from the Nova Scotia Utility and Review Board.