Topic:"Depreciation Amortization" in M13113

MANAGEMENT FINANCIAL OVERVIEW (UNAUDITED) As an independent system operator, IESO Nova Scotia, like our counterparts around the world, has been set up to be funded ultimately by electricity customers. IESO Nova Scotia is expected to submit...

AI summary IESO Nova Scotia submitted its first revenue requirement application in 2025-26, requesting $5.307 million to cover operational costs. Actual expenses were $4.963 million, resulting in a $0.344 million surplus. This surplus will be addressed in the next revenue application. The financial statements, prepared under IFRS, show total expenses of $8.217 million, with adjustments made for government grants and other revenues not included in the initial filing.

d) Intangible Assets Intangible assets are recorded at cost, less accumulated amortization. Cost includes the purchase price, plus any additional costs directly attributable to the development of the asset and preparing the asset for its i...

AI summary Intangible assets are recorded at cost, less accumulated amortization, with maintenance and repair costs expensed as incurred. Amortization is calculated on a straight-line basis over the estimated useful life of the asset, reviewed annually.

Asset Rate Perpetual 5 Software 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 document discusses the retirement and derecognition of intangible assets when they are fully amortized and no future benefits are expected. It includes a table listing 'Perpetual' and 'Software' with associated rates and years.

i. Recognition and measurement Items of property, plant and equipment are measured at cost less accumulated amortization and any accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of...

AI summary The text outlines the accounting treatment for property, plant, and equipment, including initial measurement at cost, amortization, impairment losses, and borrowing costs. It also covers derecognition upon disposal and the recognition of gains or losses on disposal.

ii. Repairs and maintenance Repairs and maintenance costs are charged to expenses as incurred, except when these repairs significantly extend the life of the asset or result in an improvement in operating costs. In these instances, the por...

AI summary Repairs and maintenance costs are typically charged to expenses as incurred. However, if repairs significantly extend an asset's life or improve operating costs, the betterment portion is capitalized as part of plant and equipment.

iii. Amortization of property, plant & equipment Amortization is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment since this most closely re...

AI summary The text discusses the amortization of property, plant, and equipment, explaining that it is recognized on a straight-line basis over the estimated useful lives of each component, starting in the year the asset is put into use. Annual reviews of amortization methods, useful lives, and residual values are conducted, with changes applied prospectively.

ii. Non - financial assets (including receivables) The carrying amount of non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If such indication exists, then the asset's reco...

AI summary The text discusses the accounting treatment of non-financial assets, including the review of their carrying amounts for impairment, the estimation of recoverable amounts, and the recognition of impairment losses if the carrying amount exceeds the recoverable amount. The process involves assessing value in use and fair value less cost to sell.

ii. Right of Use Asset The Organizationamortizes the right-of-use asset on a straight-line basis from the lease commencementdate to the earlier of the end of the useful life of the right-of-use asset or the end of the leaseterm. The Organi...

AI summary The Organization amortizes the right-of-use asset on a straight-line basis over its useful life or lease term, whichever is shorter, and assesses it for impairment when indicators arise.

5. Use of estimates and judgements The preparation of the financial statements requires the organization's management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent...

AI summary The preparation of financial statements involves management making estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses. These estimates may differ from actual results.

8. Prepaid Expense 2026 Cybersecurity subscriptions Application software Other $ 74 347 56 Total prepaid expense 477 Less: Current portion (333) Long-term Prepaid Expense $ 144 Total prepaid expense of $477 include a portion that relates t...

AI summary The section discusses prepaid expenses in 2026, including cybersecurity subscriptions, application software, and long-term licenses related to power system simulation and cybersecurity. The total prepaid expense is $477, with $144 classified as long-term.

9. Property, plant and equipment Computer Hardware Furniture and Fixtures Construction in Progress 2026 Cost Balance, February 18, 2025 $ — $ — $ — $ — Additions 721 6 1,623 2,350 Balance, March 31, 2026 721 6 1,623 2,350 Accumulated Amort...

AI summary The table outlines property, plant, and equipment balances for Computer Hardware, Furniture and Fixtures, Construction in Progress, and 2026. Construction in Progress includes costs for preparing two fast-acting natural gas facilities in Pictou County, Nova Scotia, with capacities of up to 300 megawatts each, which are not yet available for use and thus not amortized.

10. Intangible Assets 2026 Balance, February 18, 2025 Addition Amortization $ — 398 (20) Balance, March 31, 2026 $ 378 Perpetual Software licenses are recognized as an intangible asset as they provide permanent usage rights to certain soft...

AI summary The document discusses the accounting treatment of perpetual software licenses as intangible assets for IESO Nova Scotia. These licenses are amortized over five years due to expected future changes in requirements, with an annual amortization expense of $20.

13. Lease liability 2026 Balance, February 18, 2025 $ — Addition 2,912 Interest expense 41 Lease payments (87) Balance, March 31, 2026 2,866 Less: current portion (192) Non-current portion $ 2,674 The estimated future lease payments associ...

AI summary This section details the lease liability for the period February 18, 2025, to March 31, 2026. It outlines the balance, additions, interest expense, and lease payments, as well as the estimated future lease payments and expenses recognized in the statement of loss for the period.