Topic:"Debt Service Coverage Ratio" in M03154

PROCEDURES 03 Monthly bank reconciliations are performed to ensure that all bank statements agree to the accounting records and that all required adjustments are recorded through journal entries. Deleted: preformed 04 If the net total of t...

AI summary The document outlines procedures for monthly bank reconciliations and the accounting treatment for bank overdrafts, including the necessary journal entries to reclassify overdrafts as liabilities.

GENERAL - 01 There may be times when the amount of cash on deposit in NSPI's bank accounts exceeds the amount determined necessary for daily operations. These surpluses usually arise on those days during which no short-term borrowings are...

AI summary NSPI may have excess cash in its bank accounts that is not needed for daily operations. This occurs when short-term borrowings are not due for repayment or when long-term debt or equity proceeds are received and awaiting investment. To avoid idle cash, NSPI invests these funds in short-term investments to maximize interest income.

GENERAL - 07 The debentures are issued under a trust indenture and are unsecured. - 08 As part of the privatization transaction, the Company issued matching notes to NSPFC in the principal amount of, and substantially the same terms as, th...

AI summary The text discusses the issuance of debentures under a trust indenture, the privatization transaction involving the Company and NSPFC, and the commitment to eliminate NSPFC's long-term debt through repayment and defeasance of matching notes by December 31, 1997.

- 10 Under the terms of the Defeasance Agreement, subject to certain factors, the minimum amounts of debt to be defeased are as follows: year Cumulative Requirement (millions $) 1993 $200 1994 500 1995 900 1996 1,150 1997 1,400 MATCHING NO...

AI summary The Defeasance Agreement outlines minimum debt defeasance amounts over several years, starting at $200 million in 1993 and increasing to $1,400 million in 1997.

11 Matching Notes will remain on the books of the Company until such time as it makes payment of the principal amount of Matching Notes that mature or are redeemable prior to December 31, 1997, to NSPFC. NSPFC, upon receipt of these paymen...

AI summary The text discusses the handling of Matching Notes by the Company, which remain on its books until paid to NSPFC. Upon payment, NSPFC repays corresponding obligations on Public Debt, Savings Bonds, or Government of Canada Debt. Defeased Matching Notes are converted to contingent liabilities, and the Company remains responsible for any deficiencies in defeasance assets until maturity.

POLICIES 01 Debt maturing within one year should be disclosed under this balance sheet heading, reducing the corresponding part of the debt structure.1 ACCRUED INTEREST ON LONG-TERM DEBT - 8120

AI summary The document discusses the accounting policy for disclosing debt maturing within one year under the balance sheet heading, with a reduction in the corresponding part of the debt structure. It also references the accrued interest on long-term debt under account code 8120.

POI r PUI 15.5 01 Debt which is due within one year should be disclosed under this balance sheet heading, reducing the corresponding part of the debt structure. 1

AI summary The text discusses the disclosure of debt due within one year under a specific balance sheet heading, which impacts the debt structure. It references a footnote for further details.

ACCRUED INTEREST ON LONG-TERM DEBT - 8120

AI summary The document discusses accrued interest on long-term debt, likely in the context of financial accounting and regulatory considerations for Nova Scotia Power Inc. and the Nova Scotia Utility and Review Board.

POLICY O1 Interest on long-term debt should be accrued on a 30-day month basis using the principal outstanding and prevailing rate for each debt instrument.

AI summary The document states that interest on long-term debt should be accrued on a 30-day month basis using the principal outstanding and prevailing rate for each debt instrument.

Deleted: (Account 078) Page 2: [1] Deleted AI141 8/30/2010 1:41:00 PM 05 Interest expense should be recorded on an accrual basis. 06 the related debt. Debt issue costs should be deferred and amortized on a straight-line basis over the term...

AI summary The text discusses accounting practices related to interest expense, debt issue costs, and the defeasance of long-term debt, including the deferral and amortization of these costs. It also references Canadian dollar denominated long-term debt accounts and income taxes under category 5900.

POLICIES 01 Debt which is due within one year should be disclosed under this balance sheet heading, reducing the corresponding part of the debt structure. 1 1 FASB ASC 210-10-45-9

AI summary The text discusses the accounting policy for disclosing short-term debt on the balance sheet, referencing FASB ASC 210-10-45-9. It indicates that debt due within one year should be classified under the appropriate balance sheet heading, affecting the debt structure.

Deleted: (Account 078) Page 2: [1] Deleted AI141 8/30/2010 1:41:00 PM 05 Interest expense should be recorded on an accrual basis. 06 the related debt. Debt issue costs should be deferred and amortized on a straight-line basis over the term...

AI summary The text discusses accounting practices related to interest expense, debt issue costs, and defeasance costs for long-term debt, emphasizing accrual basis recording and straight-line amortization. The content includes deleted pages and timestamps but focuses on financial accounting procedures.

- 1520: Rate Base - 1530: Regulated Return of Equity - 1570: Cost Allocation Policy - 5110: Fuel Adjustment Mechanism - 5200: Operating, Maintenance & General - 5310: Amortization -Capital Contributions in Aid of Construction - 6140: Cost...

AI summary The text lists various accounting and financial categories related to utility regulation, including rate base, return on equity, cost allocation, fuel adjustment mechanism, operating expenses, amortization, capital contributions, and debt-related items.

POLICY 01 Interest on long-term debt should be accrued on a 30-day month basis using the principal outstanding and prevailing rate for each debt instrument.

AI summary The text states that interest on long-term debt should be accrued on a 30-day month basis using the principal outstanding and prevailing rate for each debt instrument.

ACCOUNTS PAYABLE AND ACCRUED CHARGES - 8220

AI summary The document discusses accounts payable and accrued charges related to Nova Scotia Power Inc. and other entities, highlighting financial obligations and accounting standards relevant to the regulatory proceeding.

ASSETS - NOT USED AND USEFUL - 6350 - 16 No cost of capital (neither return nor interest) is to be capitalized on the existing cost base during the out of service period. Any related cost of capital is to be recovered from customers and ex...

AI summary The text outlines the treatment of costs related to assets that are out of service, specifying that no cost of capital should be capitalized during this period. Maintenance and mothballing costs are to be expensed, with potential deferral and recovery over five years with UARB approval.

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.

POLICY 01 Interest on long-term debt should be accrued on a 30-day month basis using the principal outstanding and prevailing rate for each debt instrument.

AI summary The text discusses the accrual of interest on long-term debt, specifying that it should be calculated on a 30-day month basis using the principal outstanding and prevailing rate for each debt instrument.