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Financial Administration Act

ONTARIO REGULATION 395/11

ACCOUNTING POLICIES AND PRACTICES

Historical version for the period April 11, 2012 to September 29, 2016.

Last amendment:  O. Reg. 51/12.

This is the English version of a bilingual regulation.

Depreciable tangible capital assets, etc.

1. (0.1) This section applies to public entities and to other entities whose financial statements are included in the consolidated financial statements of the Province as set out in the Public Accounts.  O. Reg. 51/12, s. 1 (2).

(1) In its accounts, an entity shall recognize the following items as deferred capital contributions:

1. Contributions received or receivable by the entity for the purpose of acquiring or developing a depreciable tangible capital asset for use in providing services.

2. Contributions in the form of depreciable tangible assets received or receivable by the entity for use in providing services.  O. Reg. 395/11, s. 1 (1); O. Reg. 51/12, s. 1 (3, 4).

(2) In its accounts, an entity shall reduce its liability for deferred capital contributions in respect of a depreciable tangible capital asset at the same rate as the rate at which amortization is recognized in respect of the asset, and shall account for the reduction of the liability in the periods during which the asset is used to provide services.  O. Reg. 395/11, s. 1 (2); O. Reg. 51/12, s. 1 (5).

(3) In its accounts, an entity shall recognize, as revenue, the capital contributions in respect of a depreciable tangible capital asset at the same rate as the rate at which amortization is recognized in respect of the asset, and shall account for the revenue in the periods during which the asset is used to provide services.  O. Reg. 395/11, s. 1 (3); O. Reg. 51/12, s. 1 (6).

(4) If the net book value of a depreciable tangible capital asset is reduced for any reason other than amortization, an entity shall, in its accounts, recognize a proportionate reduction of the deferred capital contributions for the asset and a proportionate increase in the revenue from deferred capital contributions for the asset.  O. Reg. 395/11, s. 1 (4); O. Reg. 51/12, s. 1 (7).

(5) This section prevails over a requirement of another Act or regulation.  O. Reg. 395/11, s. 1 (5).

Use of U.S. generally accepted accounting principles

2. (1) Hydro One Inc. and Ontario Power Generation Inc. shall prepare their financial statements in accordance with U.S. generally accepted accounting principles.  O. Reg. 51/12, s. 2 (2).

(2) This section applies for any financial year of the corporation that begins on or after January 1, 2012.  O. Reg. 51/12, s. 2 (2).

(3) This section prevails over a requirement of another Act or regulation.  O. Reg. 395/11, s. 2 (3).

3. Revoked:  O. Reg. 51/12, s. 3.