Topic:"Depreciation Amortization" in M12663

4. Measurement and Useful Life Property, plant and equipment are recorded at cost less accumulated depreciation. Cost includes the purchase price, plus any additional costs directly attributable to the construction of the asset and prepari...

AI summary This section outlines the accounting treatment for property, plant, and equipment, including initial cost recognition, depreciation methods, and annual reviews of useful lives. Costs directly attributable to asset construction are capitalized, while maintenance and repair costs are expensed. Depreciation is calculated on a straight-line basis over estimated useful lives.

Computer Hardware and Audio Visual Straight line 5 years Furniture and Fixtures Straight line 10 years Leasehold Improvements Straight line 10 years Property, plant and equipment are retired when they are fully depreciated and derecognized...

AI summary The document outlines depreciation schedules for various categories of property, plant, and equipment, specifying straight-line depreciation over 5 or 10 years. Assets are retired when fully depreciated and derecognized when no future benefits are expected.

External website 3 years Perpetual software licenses 5 years Intangible assets are retired when they are fully amortized and derecognized when no future benefits are expected to arise from their use.

AI summary The text discusses the retirement and derecognition of intangible assets when they are fully amortized and no future benefits are expected from their use.

Purpose The purpose of this policy is to establish consistent criteria for the capitalization, depreciation, and disposal of Property, Plant and Equipment (PP&E) and Intangible Assets in accordance with the IESO Nova Scotia accounting fram...

AI summary This policy establishes consistent criteria for the capitalization, depreciation, and disposal of Property, Plant and Equipment (PP&E) and Intangible Assets under the IESO Nova Scotia accounting framework.

Capitalization Threshold To be capitalized, an item must have a useful life greater than one year and a cost that exceeds $3,000 per unit. Individual items below the threshold shall be expensed as incurred. Group purchases of assets that i...

AI summary The document outlines the capitalization threshold, stating that an item must have a useful life greater than one year and cost more than $3,000 per unit to be capitalized. Items below this threshold are expensed as incurred, with exceptions for group purchases of assets below the threshold that may be capitalized.

Measurement and Useful Life Property, plant and equipment are recorded at cost less accumulated depreciation. Cost includes the purchase price, plus any additional costs directly attributable to the construction of the asset and preparing...

AI summary The document outlines the accounting treatment for property, plant, and equipment, emphasizing cost inclusion, depreciation methods, and the handling of maintenance and repair costs. Assets are depreciated on a straight-line basis over their estimated useful lives, with annual reviews of these estimates.

Depreciation periods for property, plant and equipment are shown in the following table. Computer and Audio-Visual Hardware Straight line 5 years Furniture and Fixtures Straight line 10 years Leasehold Improvements Straight line 10 years C...

AI summary The document outlines depreciation periods for various categories of property, plant, and equipment, specifying different methods and timeframes. Assets are retired upon full depreciation or when they no longer provide future benefits, with any gains or losses recognized in the Statement of Income.

Perpetualsoftware 5 licenses years Intangible assets are retired when they are fully amortized and derecognized when no future benefits are expected to arise from their use. Any gain or loss on derecognition is recognized in the Statement...

AI summary The document discusses the retirement and derecognition of intangible assets, stating that they are retired when fully amortized and derecognized when no future benefits are expected. Any gain or loss from derecognition is recognized in the Statement of Income.

Impairment and Obsolescence Review Property, plant and equipment and intangible assets are reviewed at each reporting date to assess whether there is any indication that an asset may be impaired or has become obsolete. If such indicators e...

AI summary The document outlines the process for reviewing property, plant, equipment, and intangible assets for impairment or obsolescence. Assets are evaluated at each reporting date, and impairment losses are recognized if the carrying amount exceeds the recoverable amount. Annual testing is required for certain intangible assets, and reversals of impairment are allowed if conditions change.

Presentation Restricted cash, being cash balances that are not available for immediate use by the entity due to contractual, legal, or regulatory restrictions, is excluded from cash and cash equivalents and presented separately in the stat...

AI summary The document discusses the accounting treatment of restricted cash, cash equivalents, and foreign currency translations for the IESO Nova Scotia. It outlines how restricted cash is presented separately, the inclusion of bank overdrafts in cash equivalents, and the handling of foreign exchange gains and losses.

Classification and Measurement IESO Nova Scotia's financial assets consist of cash and trade accounts receivable. These assets meet the criteria for measurement at amortized cost, as they are held within a business model whose objective is...

AI summary IESO Nova Scotia's financial assets, including cash and trade accounts receivable, are measured at amortized cost. This is because they are held under a business model focused on collecting contractual cash flows, and their terms result in cash flows that are solely payments of principal and interest.

29 IESO Nova Scotia 2026/27 Revenue Requirement Application (M12663), January 20, 2026, p.37. 622 623 624 625 626 627 628 Specific types of costs to be included or excluded – at this time, the only costs to be • included are OM&A cost vari...

AI summary The document discusses the inclusion of specific costs in the DVM, emphasizing that only OM&A cost variances from the 2025-2026 and 2026-2027 revenue applications are included at this time. Capital costs will be considered in the future, but only after NSEB approval. The IESO Nova Scotia aims to recover all actual costs, regardless of type, due to its not-for-profit status.

32 M12633 Transcript, June 17, 2026, pages 234 - 235. 654 655 And: 656 Q. And as I understand the evidence as it's come in in this hearing, the request that 657 categories such as capital would be included, you've modified that in your tes...

AI summary The discussion centers on the clarification of capital cost recovery, specifically the inclusion of depreciation and interest expenses rather than deferring capital itself. The testimony acknowledges the need for clarity in the Application and references the DVM guidelines and final accounting policies to be submitted to the NSEB.

1 concluded, that would be the final approval for that 2 would include these policies. 3 Q. Okay. So on page 48, it talks 4 about "Capitalization Policy Intangible Assets." It 5 talks about, "Intangible assets are recorded at cost less 6 a...

AI summary The discussion centers on the capitalization policy for intangible assets, specifically how they are recorded at cost less accumulated amortization. It also touches on the depreciation being accumulated for the '25/'26 financial period and how provincial funding covers capital expenditures, preventing customer impact from these costs.

IESO NOVA SCOTIA PANEL 233 Cr-ex, (Rudderham) 1 (Johnston) Yes. So like the A. 14 depreciation expense and interest expense associated with 15 it. And that that would fit within our Revenue 16 Application coming forward towards the Board....

AI summary The discussion revolves around the treatment of depreciation and interest expenses in a revenue application, particularly when there are changes in the timing of project implementation. A deferral account is proposed to capture any incremental expenses arising from such timing differences, and it is clarified that no capital costs are being recovered in the current revenue requirement.

IESO NOVA SCOTIA PANEL 347 Cr-ex, (Rudderham) 1 factor that in before we could bring it forwards. So 15 costs, is it IESO NS's intention to include those 16 capitalized implementation costs as part of the deferral 17 account? 18 (Johnston)...

AI summary The discussion revolves around the inclusion of capitalized implementation costs in a deferral account, with the IESO NS indicating that such costs would be used for variances in depreciation and interest expense rather than being directly included. The IESO NS plans to seek approval for the implementation budget before allocating funds to the deferral account.

account; is that correct? A. (Johnston) Yes, I think that's that was the intent here and I think it was really just trying to recognize that we know that every year whatever we forecast and what we actually spend will vary by hopefully a s...

AI summary The witness confirms the intent behind an accounting approach that acknowledges annual variances between forecasts and actual spending. They also clarify that the request to include capital categories has been modified to focus on depreciation and interest-related expenses rather than deferring capital itself.

BROWN In-ch, (Mahody) 1 Q. So for costs, particularly of any 6 please, that you've filed a report in this matter and it's 7 been marked as Exhibit N-11? 8 Yes. A. 9 And that you responded to IRs Q. 10 from the Industrial Group, and that's...

AI summary The document outlines the qualification of Ms. Brown as an expert in revenue requirement, utility practices, OM&A costs, and deferral and variance mechanisms. It includes her prior testimony before regulatory bodies and her acceptance as an expert by the Board.

INTERNATIONAL REPORTING INC. CERTIFIED COURT REPORTERS included in the guidelines, but can the Application that's been put forward with respect to the depreciation of capital be approved prior to this information being provided, or would y...

AI summary The discussion centers on whether the Board can approve the Application regarding the depreciation of capital before specific information is provided. The response suggests that the information can be filed by the end of 2026 and that current capital assets are minor, such as office equipment and website development.