Uniform Classification of Accounts And Related Railway Records (2014)

Table of Contents

Section 1000 Introduction to the Uniform Classification of Accounts

Introduction

This document deals with the Uniform Classification of Accounts (UCA) for railway companies and certain related railway records (principally operating statistics).

Purpose

The purpose of the UCA is to define the method of accounting for railway companies subject to regulation by the Canadian Transportation Agency (Agency). It provides accounting instructions and the framework of accounts for the rail operations of such carriers. It also provides instructions for the recording of operating statistics and defines the categories for such data.

History of the UCA

The UCA was first issued in September 1955 by the Board of Transport Commissioners for Canada, the predecessor of the Canadian Transport Commission. This first UCA was prescribed effective January 1, 1956 for the existing Class I railway companies (Canadian National Railway and the Canadian Pacific Railway Company at that time). Subsequently, a condensed classification of accounts was prescribed for all other railway companies within the legislative authority of the Parliament of Canada effective January 1, 1957.

There then followed a series of amendments which were incorporated into a revised version of the UCA which became effective January 1, 1959. This version, in turn, received a number of comparatively minor amendments which were documented in Accounting Circulars Nos. 8, 9, 10 and 11.

Apart from the above modifications, the 1959 version of the UCA was in effect for over twenty years. This document and its predecessors were based upon the Uniform System of Accounts for Railroad Companies, a classification of accounts dating back to the early 1900's and issued by the United States Interstate Commerce Commission.

In late 1977, the Canadian Transport Commission's Railway Transport Committee commissioned a comprehensive review with the objective of bringing the UCA into line with generally accepted accounting principles, facilitating rail cost analysis, as well as updating and streamlining the document. Significant changes were made to the structure, content and form of the UCA.

The UCA was reissued in January 1989 as a result of the coming into force of the National Transportation Act, 1987 (NTA, 1987). Amendments to the UCA were issued during 1991. On July 1, 1996, the Canada Transportation Act (CTA) came into effect. Amendments to the UCA were issued in 2009.

Structure of the UCA

The UCA has been organized to facilitate the understanding and application of prescribed accounting procedures for railway companies.

General matters are explained in the initial two sections under the following headings:

  • 1000 Introduction
  • 1100 Administrative Matters

The following five sections provide accounting and record keeping instructions related to specific topics under the following headings:

  • 1200 General Accounting Instructions
  • 1300 Property Accounting Instructions
  • 1400 Revenue Accounting Instructions
  • 1500 Expense Accounting Instructions
  • 1600 Operating Statistics Instructions

Section 1700 contains the chart of accounts, together with an explanatory text for each of the accounts, organized under the following headings:

  • 1701 Balance Sheet Accounts
  • 1702 Property Accounts
  • 1703 Accumulated Amortization Accounts
  • 1704 Revenue Accounts
  • 1705 Expense Accounts
  • 1706 Other Income and Charges Accounts
  • 1707 Amortization Accounts

Section 1800 contains the chart of operating statistics, together with an explanatory text for each type of statistic.

The Appendix contains detailed schedules pertaining to certain property accounts, expense accounts and operating statistics.

The accounts themselves, as set out in section 1700, are organized in accordance with conventional accounting practice. The property and expense accounts are grouped by railway "activity" and are further subdivided into functional groupings. The purpose of these groupings of accounts is to display the interrelationship among various property and expense accounts in a consistent fashion.

Definitions

Activity

Activities are defined as the major generic categories of operation that take place within a railway company (i.e. Way and Structures; Equipment; Railway Operation; General) which are further described under the following headings:

Way and Structures

This activity concerns all operations and transactions related to the fixed plant of the railway including:

  • track and roadway;
  • buildings;
  • signals, communication and power facilities;
  • terminals and fuel stations.

The operations or transactions within this activity include repair and maintenance, leases, rents, and amortization of railway fixed plant.

Equipment

This activity concerns all operations and transactions related to railway equipment including:

  • locomotives;
  • freight cars;
  • passenger cars;
  • intermodal equipment;
  • roadway machines;
  • work equipment.

The operations or transactions within this activity include repair and maintenance, leases, rentals and amortization of railway equipment.

Railway Operation

This activity concerns all of the operations of the railway company which are directly involved in providing transportation service, including:

  • train operations;
  • yard operations;
  • train control operations;
  • intermodal operations;
  • station and terminal operations;
  • other transport modes used as an integral part of a rail service.

General

This activity concerns all operations and transactions required to support the overall railway enterprise and includes:

  • general administration;
  • employee benefits;
  • taxes;
  • insurance;
  • purchasing and material stores.

Agency

Agency means the Canadian Transportation Agency. The Agency is the regulatory body for railway companies within the legislative authority of Parliament.

Carrier

Carrier means a person who is engaged in the transport of goods or passengers by any means of transport under the legislative authority of Parliament.

Geographic Cost Centre

Geographic Cost Centre is a term denoting subdivision of an account along geographic lines at a level of detail greater than that of a region. Where costs forming part of an account which is to be recorded by Geographic Cost Centre cannot reasonably be attributed to Geographic Cost Centres, they may be recorded at a higher level of aggregation.

Intermodal

Intermodal operations involve movements by more than one mode of transport. In the UCA context, the term intermodal refers essentially to operations in which goods are carried in a van (usually a highway trailer or freight container) which is transferred between a rail car and other vehicle(s) (usually trucks or ships) which are used to accomplish the non-rail parts of the move. Trailer on Flat Car (T.O.F.C.) and Container on Flat Car (C.O.F.C.) are designations denoting the most familiar rail forms of intermodal transport.

Natural Expense Categories

Natural expenses are defined as the basic inputs to the railway enterprise. Three categories of natural expense are established in the UCA, as follows:

  • Labour
  • Material
  • Other

Rail Division

This term is used when the railway is part of a larger corporate structure. It means the segment within the corporate structure which operates the railway.

Railway

Railway means a railway within the legislative authority of Parliament and includes:

  1. branches, extensions, sidings, railway bridges, tunnels, stations, depots, wharfs, rolling stock, equipment, stores or other things connected with the railway, and

  2. communications or signaling systems and related facilities and equipment used for railway purposes.

Railway Company

Railway company means a person who holds a certificate of fitness under section 92 of the CTA, a partnership of such persons or a person who is mentioned in subsection 90(2) of the CTA.

Section 1100 Administrative Matters

Section 1101 Classification of Carriers

1101.01 Railway companies within the legislative authority of the Parliament of Canada are classified as follows:

1101.02 Class I

A railway company that realized gross revenues of at least $250,000,000 for the provision of Canadian rail services in each of the two calendar years before the year in which information is provided pursuant to Part II of the Transportation Information Regulations (SOR/96-334).

1101.03 Class II

A railway company that realized gross revenues of less than $250,000,000 for the provision of Canadian rail services in each of the two calendar years before the year in which information is provided pursuant to Part II of the Transportation Information Regulations (SOR/96-334).

1101.04 Class III

A railway company, other than a class I rail carrier or a class II rail carrier that is engaged in the operation of bridges, tunnels and stations.

Section 1102 Records

1102.01 The books to be used in recording transactions as classified in these regulations are not prescribed. They shall conform, however, to accepted accounting and legal standards.

1102.02 Records are to be maintained in a manner facilitating review, audit and tracing of transactions to source data. Where full information on transactions is not recorded in the general books of a carrier the entries therein shall be supported by other records, suitably cross-referenced, containing such information.

1102.03 The accounts employed by the carriers must conform with the UCA. UCA account numbers shall be used as the codes of primary importance within the railway companies, at the level of disaggregation set out in the UCA. In order to retain flexibility, carriers may further sub-divide any of the UCA's prescribed accounts in accordance with their needs for responsibility identification, functional separations or other detailed requirements, providing that all resulting data can be related to the UCA accounts without the use of allocations. Carriers are not permitted to substitute their own coding systems where UCA account numbers have been prescribed.

1102.04 Where costs arise in such a way as to fall naturally into more than one UCA account, where this is in the nature of the cost, rather than being the result of the data requirements of railway management, an allocation on some reasonable basis for the relevant UCA accounts will be permitted, only after consultation with the Agency.

1102.05 The Agency's "Railway Costing Regulations" state the basis of costs for regulatory purposes. In keeping with the above regulations, it is intended that the UCA be used as the primary source of data for regulatory cost analysis.

Retention of Records

1102.06 Accounting, operating or costing papers, statistical records, source documents, working papers and reports (including paper and electronic records) used in:

  1. the recording of transactions as classified in the UCA, or;
  2. the development and calculation of specific and unit costs, and service units, including switching times; and/or
  3. any regulatory costing exercise initiated through application under the CTA or other legislation.

must be retained for a minimum of five years after the end of the year to which the document is related after which they may be discarded or destroyed at the discretion of each railway company's management.

Section 1103 Reporting of Results

1103.01 Annual results for carriers shall be stated on the basis of years ending December 31.

1103.02 The Annual Report and Financial and Related Data are to be completed in accordance with the provisions of Part II of the Transportation Information Regulations (SOR/96-334)under section 50 of the CTA, with submissions provided to Transport Canada not later than May 31 of the year following that for which the report is made, or another date as set out in SOR/96-334. This will be regarded as confidential in accordance with section 51 of the CTA.

1103.03 In addition, all carriers are to provide the Agency with their annual shareholders' report and/or annual audited financial statements.

Section 1104 Interpretation and Clarification of UCA

1104.01 When in doubt as to the intent of the UCA on substantive matters of interpretation or policy, carriers are to submit to the Secretary of the Agency questions seeking interpretation and/or clarification of the issue(s). In addition, the Agency may issue interpretations on its own initiative.

1104.02 The Agency may require written submissions and may hold a hearing before giving an interpretation.

Section 1105 Related Party Transactions

1105.01 A definition of "Related Parties" is set out in the CPA Canada Handbook-Accounting. For purposes of the UCA, the definition is extended to include, as a Related Party of a rail division, any other division of a corporation of which the rail division forms a part.

1105.02 Carriers are required to maintain such supporting data with respect to transactions between rail divisions and "Related Parties" as well as explain the price basis and reasons for the transactions.

1105.03 The transfer or sale of property between the railway and any related party is to be governed by the following principles and practices:

1105.04  Normally, such transactions should be carried out on the basis of the fair market value of the property.

1105.05 Where the carrier uses some basis other than fair market value and where the transaction involves either:

  1. depreciable property for which the net book value or the fair market value amounts to $1 million or more, or
  2. land, regardless of value,

the carrier must retain all of the following information with respect to the transactions:

  • the reason for the transfer or sale;
  • the date of transfer or sale;
  • the identity of the related party;
  • a description of the property involved;
  • the estimated fair market value of the property;
  • the original cost of the property;
  • the estimated depreciation accumulated with respect to the property;
  • the proposed transfer value of the property;
  • the basis on which the transfer value was calculated;
  • the reason for valuing the property at other than fair market value.
 
The carrier will, upon request of the Agency, submit this information (and any other information considered relevant by the Agency) to the Agency.

1105.06 Where the Agency considers that it was inappropriate to use a basis other than fair market value for the transaction, it may direct that an estimated fair market value be used.

1105.07 Special provision is made in other sections of the UCA for two cases:

  1. sale or transfer of property to a related party where the intent is that the property will be disposed of by the related party.
    Reference: section 1309.18;
  2. exchange of properties.
    Reference: section 1310

Section 1106 Revision of Minimum Amounts

1106.01 The accounting instructions in this UCA set out certain minimum amounts which are used as a guide to appropriate accounting procedures in specific circumstances. The Agency will consider revisions to these minimum amounts when requested by carriers. A carrier's application for amendment of the minimum amount must include an explanation and relevant data that would support the request to deviate from the amount in section 1305.03. The Agency will provide adequate notice of any revisions to be made.

Section 1200 General Accounting Instructions

Section 1201 Regulatory Costing Purpose

1201.01The UCA sets out the basis of costs and operational information which enables evaluation of the various rail regulatory issues by ensuring full, reliable and consistent data relating to rail activities, and their costs.

As the UCA is the primary source of data for regulatory cost analysis, all accounts in this UCA are intended to provide rail regulatory costs. These costs may differ from those costs estimated under Generally Accepted Accounting Principles.

1201.02 The Agency approach for determining regulatory costs is based on the principles enunciated by the MacPherson Commission, whose recommendations are embedded in the Canada Transportation Act, and on a number of regulatory railway costing instruments, including, among others, the Railway Costing Manuals, the Uniform Classification of Accounts, Order No. 6313[1] and Reasons for Order No. 6313[2]).

1201.03 Two fundamental principles underlie this approach. First, the costs of railway companies must reflect the consumption of an economic resource for the purpose of providing rail transportation service.

1201.04 Second, for the proper determination of which costs are “variable” and which are “constant” with respect to traffic volume, the costs must be reasonably matched to the time period in which the activity that incurred the costs was actually performed.

1201.05 The application of these two principles ensures the establishment of a causal relationship between the real resources consumed and the activities that caused these real resources to be consumed.         

1201.06 Where the prescribed accounting methods result in costs that conform to the definition of regulatory costs as set out in subsections 1201.03 - 1201.04, the UCA directs for the cost to be reported in accordance with those accounting methods.     

1201.07 Where the prescribed accounting methods result in costs that do not conform to the definition of regulatory costs as set out in subsections 1201.03 - 1201.04, the UCA directs for the costs to be determined and reported according to methods that do conform to subsections 1201.03-1201.04.

1201.08 Subsections 1202.03-1202.06 set out the process for application of subsections 1201.06 and 1201.07.

Section 1202 Application of Generally Accepted Accounting Principles

1202.01 The accounting principles followed shall, subject to specific instructions in this UCA, be accounting principles generally accepted for use by railway companies in Canada.  This includes both Canadian Generally Accepted Accounting Principles or United States Generally Accepted Accounting Principles, depending on the entity.

1202.02 While "generally accepted accounting principles" (GAAP) is a technical term in financial accounting, it is widely understood to denote those accounting principles which have been developed, through use, custom and experience, to guide the recording, measuring and communicating processes of financial accounting.

1202.03 The method of accounting used in providing UCA data must meet the purposes of rail regulatory costing as described in section 1201. In general, accounts should be provided according to the above mentioned generally accepted accounting principles, except as directed through Agency Orders, Decisions, or Regulations, as appropriate.

Where a railway company finds that prescribed accounting methods do not meet the test for rail regulatory costs as set out in subsections 1201.03-1201.04, the railway company should communicate that to the Agency as set out in subsection 1202.05.

The Agency could also on its own initiative, commence a consultation, where the Agency is concerned that prescribed accounting methods may not conform with subsections 1201.03 and 1201.04.

1202.04 From time to time, the above-mentioned accounting principles change. It is possible that the new principles will not meet the test for rail regulatory costs as defined in subsections 1201.03-1201.04. Accordingly, when new accounting recommendations are published by the Chartered Professional Accountants of Canada (CPA)/Financial Accounting Stansdards Board in USA (FASB), railway companies may, within 90 days after the effective date of publication, submit to the Agency their views as to whether the new accounting recommendations meet the test for rail regulatory costs.

If:

1. The new accounting recommendations meet the test for regulatory costs, railway companies may, in the same submission, submit their views as to:

  1. Whether the new accounting principles should be adopted on a retroactive or prospective basis; and
  2. The most appropriate method of implementing the new accounting principles; or

2. The new accounting recommendations do not meet the test for regulatory costs, railway companies must follow the procedure set out in section 1202.05.

1202.05 In all cases where an expense determined according to prescribed accounting methods does not meet the test for rail regulatory costs as defined in subsections 1201.03-1201.04, the railway company will provide details of the prescribed accounting methods used in determining the expense. The Agency will direct all railway companies of the appropriate accounting principles and methods to be followed.

1202.06 Further, new types of transactions may arise which are not similar to transactions for which accounting practice has been developed. In such situations, railway companies should submit to the Agency their views as to the accounting principle or method most appropriate in the circumstances and follow the procedure set out in subsection 1202.05.  

1202.07 The Agency will not receive submission on, or prescribe accounting principles and methods for, non-rail activities of carriers.

1202.08 While materiality of an item is a matter of judgment having regard to all the circumstances, the Agency considers that, as a general rule, materiality may be judged in relation to the reasonable prospect of its significance in the making of decisions by the Agency. If the item might reasonably be expected to affect a decision, it should be deemed material.

Section 1203 Scope of UCA

Canadian Rail Operations

1203.01 All accounts provided in this UCA are intended to contain only transactions and balances resulting from Canadian Rail operations defined as follows:

1203.02 Rail operations consist of the transportation by rail of goods and passengers (both inter-city and commuter) and include intermodal transportation, which may involve the railway in transport modes other than rail, where such operations are required to complete a rail move.

1203.03 Canadian rail operations are those of:

  • Canadian railway companies in Canada;
  • lines in the United States which comprise short ends or interchange points or a part of continuous Canadian lines which pass through the United States due to geographic location of the terminal points (accounts for these lines shall be in accordance with the Uniform System of Accounts for Railroad Companies as prescribed by the Surface Transportation Board, unless the Surface Transportation Board gives the carrier permission to adopt the rules, instructions and structure of this document);
  • lines in Canada owned and/or operated by United States railway companies;
  • affiliated or jointly owned railway or terminal companies operating in Canada;
  • leased railway lines in Canada.

Non-Rail Activities

1203.04 Because of the variety of non-rail activities in which the carrier may become involved, it is not considered feasible to include in this UCA the method of accounting for such activities. In accounting for non-rail activities, the carrier should use accounts which are clearly distinguishable from the UCA accounts.

1203.05 The rail division will become involved from time to time in non-rail activities, which will result in transactions which will affect current assets and current liabilities, and, in some cases, on a temporary basis, other assets and liabilities. The UCA balance sheet accounts are to be used to record such assets and liabilities.

1203.06 When items such as cash, accounts receivable and accounts payable are the responsibility of a separate treasury function and not of the rail division, the prescribed UCA accounts for such items will not be used.

Canadian Share of Trans-border Activity

1203.07 Where railway companies operate across jurisdictions (i.e. Canada and the United States), Canadian revenues, costs and operating activities should be determined by direct assignment.

1203.08 Where specific direct assignment is not practical, railway companies should have available for review, upon request, a narrative description of the method of allocation used to determine Canadian revenues, costs, and operating activities and the rationale for adopting this method.

1203.09 Where the method of allocation changes, railway companies must provide timely notice to the Agency of any such change in advance of filing under the new method.

1203.10 Where the Agency determines that a method would not provide the information necessary for the development of regulatory costs, the Agency may direct a railway company to develop and implement an alternative allocation method.

Section 1204 Joint Facility Accounts

1204.01 Joint facility accounts are provided in this UCA to record settlement between the carrier and other carriers which share the cost of joint use of tracks, yards, equipment and certain other facilities, without disturbing the primary account distribution by the carrier which incurs the cost to be shared.

1204.02 The carrier which incurs the expense shall include as a credit in these accounts only the amounts recoverable from other carriers. Correspondingly, a using carrier which shares the expense shall include in these accounts only amounts billed by other carriers.

1204.03 The owning carrier shall indicate the distribution to joint facility expense accounts of amounts billed, and using carriers shall follow this distribution in their own accounting records.

1204.04 Line haul train service is not a joint facility for purposes of these accounts.

1204.05 Accounts are also provided for settlement of joint facility revenues in the revenue accounts.

Section 1205 Donations and Grants

1205.01 The carriers should examine the economic circumstances in order to determine the appropriate accounting treatment, including the timing of the recognition of the benefits, of amounts received as donations and grants. Normally, the donations and grants will be accounted for according to the "income approach", which requires that the amounts received as donations and grants be credited in one of the following ways, depending on the nature of the assistance:

  1. direct increases in revenues, or reductions in expenses;
  2. reduced amortization charges based on reduced asset costs;
  3. amortization of deferred credits.

1205.02 In some unusual circumstances, the "capital approach" might be acceptable to the Agency; however, permission to account for a donation or grant in this way must be obtained from the Agency. The "capital approach" requires that the amount of the donation or grant be treated as a capital transaction and credited to contributed surplus.

1205.03 Accordingly, except in the unusual circumstances where the Agency has given authorization to use the "capital approach", donations and grants from governments or others, and whether in cash, property or other consideration, are to be dealt with as follows:

  1. 1205.04 Donations and grants related to assistance toward current operations are to be credited to one of the accounts provided for the purpose (e.g. Government Payments, accounts 379 to 381; expense accounts 481, 580, 755 and 865).
  2. 1205.05 Donations and grants identified as being related to property acquisitions are to be credited to account 73 and amortized to income (through account 967and account 997) on the same basis as the cost of the related property is depreciated. Upon final retirement or disposal of a donated asset, any unamortized balance of the related donation or grant is to be credited to the appropriate accumulated depreciation account.

1205.06 Where more than one class of property is involved, the donation or grant is to be amortized to income at a rate calculated on the basis of the useful life of each property class involved and the proportion that the cost allocated to each property class is to the total amount involved. Where the asset involved is land, the donation or grant should not be amortized; the total amount involved should be retained in account 73 until the land is retired, at which time it should be taken into income as a lump sum.

1205.07 Contributions from shareholders are not to be accounted for as donations and grants; rather, they are to be credited to contributed surplus. For example, when a government holds an equity position in a carrier and a contribution of cash or other assets is made by virtue of the government's position as a shareholder, the amount of the contribution will be credited to contributed surplus. The accounting for property acquired in this way will follow the prescribed accounting for property purchased or constructed by the railway.

1205.08 The distribution of amounts between accounts 73, 481, 580, 755 and 865 and between various classes of property within account 73 should be governed in the first instance by the terms of the contract or agreement covering the donation or grant involved. Where the contract or agreement is silent, the allocation should be in proportion to the share of the various property and expense items in the total cost of the project, except where the expense items total less than $10,000, in which case the expense items may be given priority in making the allocation.

1205.09 For all donations and grants (including, to the extent possible, those recorded in account 83.1), carriers must maintain records showing the source of each donation or grant and the purpose for which each was intended. In addition, the following requirements are applicable to the particular types of donation or grant indicated.

1205.10 For each donation or grant recorded in account 73, carriers must maintain records showing:

  • the amount credited to income, year by year, in respect of the donation or grant;
  • the amount at the end of each year yet to be amortized to income; and
  • sufficient information to allow the Agency to match the donation or grant to the corresponding property account or accounts and to the corresponding property records as specified in section 1301.

1205.11 For donations and grants recorded in account 83.1, the carrier must maintain, to the extent possible, records containing sufficient information to allow the Agency to match the donation or grant to the corresponding property account or accounts and to the corresponding property records as specified in section 1301.

1205.12 For donations and grants recorded in accounts 481, 580, 755 and 865, carriers must maintain records which will allow the Agency to relate such amounts to the corresponding expense accounts including sub-accounts, geographic detail and equipment type detail where applicable.

Section 1206 Accounting Procedures for Class II and III Railway Companies

1206.01 The procedures and account structure prescribed in this UCA are to be followed by Class II and III railway companies with the following exceptions:

  • Reporting by Geographic Costs Centres-section 1502
  • Division of Investment  in Rail into first and other than first position - subsection 1702.103 –sub-accounts 103.2 and 103.3
  • Dual Reporting of Expenses to meet regulatory costing purposes - subsection 1201.07

These items are required for Class I railway companies only.

Section 1300 Property Accounting Instructions

Section 1301 Property Records

1301.01 Carriers shall maintain records of physical assets, both owned and used under agreements classified as capital leases, in which shall be recorded:

  • the cost of the asset;
  • the nature of the asset;
  • the date of acquisition or placement;
  • for assets included in property accounts 101.1 through 163, excepting 113, the location; and
  • for assets included in property accounts 171 through 189 detailed descriptions, including cost and any serial numbers etc., which serve to identify the assets.

1301.02 The records of physical assets shall record all transactions in respect of additions, replacements, transfers, retirements and changes in location on a timely basis and shall be reconciled with the related property accounts not less frequently than annually.

Section 1302 Property Accounts

1302.01 The property accounts shall include the cost of physical assets, both owned and used under agreements classified as capital leases. Leased assets shall be indicated by an account suffix.

Section 1303 Nature of Costs to be Included as Additions to Property Accounts

1303.01 Additions to Property accounts include costs related to the following whether constructed, acquired by purchase or through capital leases:

  • additional equipment and facilities and improvements thereto;
  • major renewals and conversions;
  • programmed replacements of track structure;
  • replacements of other property.

1303.02 Except in the case of programmed replacements of track structure, for which a special accounting policy is described in section 1308, the cost of additions to property shall include the elements of cost listed and described in sections 1303.07 through 1303.22.

1303.03 When repairs are made to existing property in conjunction with additions to property, the cost of removing old material and the cost of new parts plus the labour cost actually incurred, shall be charged to the expense accounts appropriate for repairs to the equipment or facility being repaired. Such charges shall include the cost of removing old foundations and filling old excavations, of restoring the condition of grounds after construction work and of maintaining or protecting traffic during the progress of construction work, including the cost of constructing, maintaining and removing temporary tracks required for that purpose.

1303.04 The cost of shifting or rearranging tracks within a yard shall be charged to expenses, even though the tracks may be dismantled in the process, but resulting additions or reductions in track structure shall be accounted for as additions or retirements, as appropriate. Dismantled tracks which are replaced by other tracks outside the existing yard shall be retired from the property accounts, and newly constructed tracks shall be accounted for as additions.

1303.05 Changes in the line of road are to be accounted for as improvements if they are made for the purpose of reducing curves or grades, or to eliminate bridges, tunnels or other physical features and if the changes involve units of track structure or changes in the existing road bed.

1303.06 When secondhand equipment acquired (not previously owned by the railway company) is in such physical condition that it is necessary to make extensive repairs to it to bring it up to the railway company's standards, the repairs shall be considered improvements. The cost of such repairs shall be included in the account appropriate for the cost of the equipment.

Cost of Labour

1303.07 The cost of labour includes:

  • an appropriate share of the salaries, wages and employee benefits of the carrier’s own officers and employees;
  • the cost of labour expended for preliminary work, such as sinking test holes or making soundings, for tunnels, gradings, buildings, and other structures;
  • the cost of labour expended in laying and taking up tracks for temporary use in construction, except the cost of labour expended on tracks provided for the protection of rail traffic during the progress of addition or replacement work.

1303.08 No charge shall be made against property accounts for the pay of officers and employees who merely render services incidentally in connection with extensions, additions, or replacements.

Cost of Materials and Supplies

1303.09 The cost of materials and supplies includes:

  • the purchase price of materials and supplies, including small tools, at the point of free delivery;
  • sales taxes on materials and supplies;
  • the cost of inspection and loading assumed by the carrier;
  • the cost of transportation paid to others;
  • a suitable portion of material stores and purchasing expense.

1303.10 In calculating the cost of materials used, allowance shall be made for the value of the material recovered and used for other purposes.

Cost of Contract Work

1303.11 The cost of contract work includes amounts paid for work performed under contract by other companies, firms, and individuals and costs incident to award of the contract.

Cost of Work Train Service

1303.12 The cost of work train service includes:

  • amounts paid to others for rent and maintenance of equipment used;
  • cost of labour of enginemen, trainmen and enginehousemen, including wages of engine crews and train crews held in readiness for such service;
  • cost of fuel and other supplies consumed in the operation of work trains;
  • the cost of on-site maintenance of the carrier's own equipment used in construction service.

Cost of Vessel Work Service

1303.13 The cost of vessel work service includes:

  • amounts paid to others for rent and maintenance of vessel equipment used;
  • costs of labour of crews, including wages of crews held in readiness for service;
  • cost of fuel and other supplies consumed in connection with the operation of vessels in work service;
  • cost of maintaining the carrier's own vessel equipment used in construction service.

Cost of Equipment for Specific Construction Projects

1303.14 When a construction project necessitates the purchase of equipment to be used exclusively therein until its work on the project is completed, the cost of such equipment shall be included in the accounts representing the cost of the work, and no charge shall be made to expenses for amortization on such equipment while the cost remains so charged.

1303.15 The amount realized from any subsequent sale, or the appraised value of the equipment retained after the completion of the work for which it was purchased, shall be credited to the accounts charged with its cost. The appraised value of such equipment retained shall be charged to the appropriate account, and thereafter, for the purposes of accounting, such appraised value shall be considered as the cost of the equipment. Under no circumstances should the appraised value of the equipment retained after completion of the work for which it was purchased exceed the cost of the equipment.

Cost of Special Machine Service

1303.16 The cost of special machine service includes:

  • the cost of labour expended and the cost of materials and supplies consumed in operation and on-site maintenance of machines such as power shovels, scrapers, rail unloaders, ballast unloaders, piledrivers, dredges, ditchers, weed burners and special off-track machines;
  • amounts paid to others for rent and maintenance of such machines.

Cost of Large-Scale Roadway Equipment Service

1303.17 Large-scale roadway equipment is machinery costing or valued over $1,000,000and used in constructing or replacing way and structures. The cost of large scale equipment service includes:

  • all applicable costs listed in sections 1303.12 and 1303.16;
  • off-site maintenance costs;
  • amortization.

1303.18 For each such machine, costs shall be accumulated and allocated to the projects for which it is used.

1303.19 Large-scale roadway equipment purchased for use on a specific project is subject to the instructions in section 1303.14.

Cost of Transportation

1303.20 The cost of transportation includes amounts paid to other companies or individuals for transporting men, materials and supplies, special machine outfits, appliances, and tools for construction purposes.

Allowance for Funds Used During Construction

1303.21 The allowance for funds used during construction includes those allowed for "Construction in Progress"

Reference: Instruction 1304

Other Costs

1303.22 Other costs include such other costs incurred as are identifiable with construction activities, for example, cost of protection from casualties and cost of privileges.

Section 1304 Construction in Progress

1304.01 When carriers have expended monies to acquire or construct assets which are not yet available for use, the costs shall be accumulated in account 31 - Construction in Progress. The balance in this account shall be supported by detailed records on which the costs applicable to each project are accumulated.

1304.02 When projects or major phases thereof are complete and available to provide service, the costs related thereto shall be transferred to the appropriate property accounts.

1304.03 Interest during the period between the commencement of construction and the coming into service of property included in Construction in Progress (account 31) may be added to the construction cost of such property. The approval of the Agency must be obtained before adopting such an accounting procedure.

1304.04 The procedure if adopted and approved must be applied consistently thereafter and is restricted to large scale projects which satisfy the following criteria:

  1. the period of construction is longer than 12 months, and
  2. the cost of the project is in excess of $1,000,000.

1304.05 The amount of interest cost to be included in construction shall be:

  1. One-twelfth of the annual interest rate on borrowings specifically related to the project multiplied by the accumulated costs of the project at the end of the last preceding month.
  2. Otherwise the interest rate shall be the weighted average annual interest rate on all borrowings in the previous year.

1304.06 In no case should the allowance for funds used during construction in any month exceed the incurred interest costs in that month.

Section 1305 Minimum Amount Rule

1305.01 In accordance with section 1106.01, carriers may apply to the Agency to determine amounts below which additions to, and replacements and major renewals of, operating property other than land and all elements of track structure may be charged to expense. No subsequent change is to be made in the minimum amounts except by authority of the Agency.

1305.02 The carrier shall not combine unrelated items of property for the purpose of including in the property accounts items which would otherwise be charged to expense, nor shall expenditures for related items be parcelled out into smaller parcels for the purpose of charging to expense items which would otherwise be included in the property accounts.

1305.03 The minimum amount is set at $7,000.

Section 1306 Units of Property

1306.01 A unit of property is an item of property which is subject to write-out write-in accounting in the course of major renewals, conversions and replacements. A unit of property is not necessarily a complete structure but may be part of a complete structure where such part is a physically distinct part of the structure. A list of units of property is given in schedule O (see section 1915). Units appearing in this list are to be considered representative and not as excluding analogous units which are omitted. The carrier may apply to the Agency to have units added to this list.

Section 1307 Accounting for Major Renewals, Conversions, Transfers

1307.01 A major renewal occurs when work is undertaken to alter an existing unit of property in order to significantly increase its service life and/or its revenue-generating capacity. A conversion occurs when work is undertaken to alter in a significant way an existing unit of property in order to convert it from one basic use to another. A transfer occurs when property is transferred from one use to another without a significant amount of alteration work.

Accounting for Major Renewals and Conversions

1307.02 The minima applicable to major renewals and conversions shall be those minima set out below.

1307.03 In order to be accounted for as a major renewal or a conversion, the cost of the work involved, exclusive of the expense of dismantling and repairs of old parts reused, must exceed 10% of the cost of a new unit of the same kind and class as the unit rebuilt. In addition, in the case of way and structures property, the cost of the work, exclusive of the expense of dismantling and repairing of old parts reused, must exceed $100,000.

1307.04 The rebuilt unit shall be accounted for as an addition and the old unit as a retirement. The charge to the appropriate property account for the rebuilt unit shall be the sum of (1) a reasonable estimate of the value of the secondhand parts remaining in the rebuilt unit, and (2) the costs incurred in the process of making alterations, including labour and additional material applied, but exclusive of the expense of dismantling and repairing secondhand parts reused.

Accounting for Transfers

1307.05 In the case of a transfer, the cost of the property together with its accumulated amortization shall be written out of the accounts representing the initial use of the property and written into the accounts representing the new use of the property.

Section 1308 Programmed Replacements of Track Structure

1308.01 Replacement of the elements of track structure is normally controlled through budget appropriations, which are programmed. In general, when a unit of track structure is replaced on a programmed basis, the facility being replaced is treated as a retirement and the new facility is treated as an addition. For each element of track structure the following rules shall apply:

1308.02 Ties - replacement of ties shall be accounted for as programmed, except in the case of spot replacements, wrecks, rockslides, wash-outs, etc. Ties changed in conjunction with rail, ballast or other track material programs shall be accounted for as follows: if fewer than 15% of the ties in the section of track covered by the program are changed, they shall be considered spot replacement; otherwise, they are to be accounted for as programmed.

1308.03 Rails - new and relay rails installed as replacement shall be accounted for as programmed where more than 1,000 continuous feet of existing track (i.e., 2,000 feet of single rail) is to be replaced.

1308.04 Note: It is not permissible for a carrier in the application of this rule to consider the replacement of rail in two or more tracks with a combined total of more than 1,000 feet of track as coming within the intent of this rule.

1308.05 Other Track Material - Other track material installed in conjunction with programmed replacements of rails or ties shall be accounted for as programmed. In addition, planned renewals of other track material undertaken independently of tie and rail programs shall be accounted for as programmed.

1308.06 Ballast - Ballast as replacement in 1,000 continuous feet of track shall be accounted for as programmed.

1308.07 In programmed replacements, the costs to be retired are as follows:

  • In the case of ties retired, the costs shall be the material cost of the first ties placed in service and not previously retired.
  • In the case of rails retired, the costs shall be the weight of rail retired times the cost per ton of the rail first placed in service and not previously retired; alternatively, the actual material cost of rail retired may be used if records of such information are maintained.
  • In the case of other track material, the costs shall be the actual or estimated material cost.
  • In the case of ballast, the costs shall be the cost of ballast first placed in service and not previously retired. The quantity of ballast retired shall be the quantity of ballast placed in the programmed replacement; however, if the depth of the ballast is to be changed, an engineering estimate shall be made of the quantity originally in place, and that quantity shall be retired.

1308.08 In programmed replacements, the costs to be charged as additions are:

  • In the case of rails, ties and other track material, the cost of materials (as per section 1303.09); and,
  • In the case of ballast the cost of material and an appropriate share of the expense of dedicated work trains (as per sections 1303.09 and 1303.12).

Section 1309 Retirement of Property

1309.01 Retirement of property occurs:

  • when land or a unit of property is withdrawn from transportation service, whether or not replaced;
  • when property classified as "less than a unit" is withdrawn from transportation service and not replaced;
  • when a unit of property is altered in such a way that it is considered that a major renewal or conversion has taken place.

1309.02 For the purposes of paragraphs 1309.06 through 1309.17 the following definitions are established:

1309.03 Cost is the amount which has been charged to the property accounts in respect of the property being retired. In any case where the cost is not separately shown in the records, the cost shall be an appropriate share of the cost of the entire group in which the particular property is included.

1309.04 Removal Costs are the costs of dismantling or demolishing retired property and of recovering salvage from retired property. Removal costs are charged to accumulated amortization accounts when incurred.

1309.05 Value of Salvage includes the amount received for property retired, or for the material salvaged therefrom, if sold.

Accounting Procedures for Retirements

1309.06 The following procedure shall be followed for normal retirements of property except land, other non-amortizable property, and reusable track material. The cost less value of salvage of the property being retired shall be charged to the corresponding accumulated amortization account. In the event that such retired property is held and not sold or scrapped immediately, the estimated value of the salvage should be included in account 39. Subsequent adjustments of the estimated salvage to actual salvage amounts shall be treated as charges or credits to the related accumulated amortization account.

1309.07 When the retirement of property (except land and other non-amortizable property and reusable track material) results in the disposal of all assets included under a particular account title, and no replacement of the asset takes place within the financial year of disposal, any balance in the related accumulated amortization account, after all normal retirement entries have been made, is to be debited or credited, as the case may be, to a specific account in the amortization expense grouping. The specified accounts are:

  • 969 Way and Structures - Amortization Adjustments
  • 999 Equipment -Amortization Adjustments

1309.08 It is intended that the balances in the two expense accounts be included in the determination of railway income for the financial year (by reducing or increasing amortization expense) with the exception of that portion of a total disposal of equipment represented by a disposal of Rolling Stock - Revenue Service (schedules A, C and H). When rolling stock included in schedules A, C and H is disposed of in its entirety, a review should be made of the status of other items in the same schedule and if such review reveals that it is appropriate to do so, the balance, either debit or credit, related to the retired item may be transferred to accumulated amortization accounts pertaining to other items in the schedule. At the same time, suitable recognition should be given, through the amortization rate, to the service life of the items of rolling stock remaining. It is not intended that the review of remaining service lives be as comprehensive as the Review of Rates (see paragraph 1311.12) but it can be so. Justification of the action should be in writing and retained on file.

1309.09 From time to time, sales or disposals of large blocks of amortizable assets will occur which, while not sales or disposals of all assets included under a particular account title, are of such a major nature that special consideration of the current and future amortization provisions related to the asset groups is required. In some situations, immediate "catch up" adjustments resembling those referred to above in connection with retirements of all assets included under a particular title, will be appropriate. In others, the appropriate accounting may call for recognition of a "catch up" amount (to be debited or credited to account 969 or 999 as the case may be) as well as a prospective change in the rate of amortization applicable to the asset following the normal procedure prescribed for the Group Amortization Method employing the Remaining Life Technique.

1309.10 In summary, three possible accounting approaches are recognized when an asset retirement occurs:

  • prospective adjustment of the amortization rate applying the Remaining Life Technique;
  • immediate recognition of a short fall or overrun in the case of the retirement of all assets included under an account title;
  • a combination of the above two approaches in circumstances created by a major disposal.

1309.11 The three accounting approaches are not options in the sense that any one would be acceptable in all circumstances. Rather, the choice is to be dictated by the circumstances and should be justified by written documentation maintained on file by the railway companies.

Retirements of Land and Other Non-Amortizable Property Items

1309.12 When land or other non-amortizable property is sold, the cost shall be removed from the accounts and the difference between the cost and the amount received shall be recorded in account 875. When land or other non-amortizable property is no longer required for transportation purposes but is retained by the railway company, the cost shall be transferred to account 39.

Retirements of Reusable Track Material

1309.13 The following instructions apply to reusable rail. Reusable track material other than rail may be accounted for according to these instructions or those contained in section 1309.06 at the discretion of the carrier.

1309.14 If the property being retired is reusable track materials, its deemed cost shall be charged to account 113 - Used Track Material in Store.

1309.15 When material carried in account 113 is used as an addition to or replacement of a track item, the deemed cost of such material shall be transferred to the appropriate property account.

1309.16 When material carried in account 113 - Used Track Material in Store is used in repair and maintenance work (e.g. spot replacement), the charge to the appropriate maintenance account will be the calculated amount that would have been charged as amortization over the remaining life of the material if the material had been used as an addition to or replacement of a track item. The balance of the carrying value of such reusable track material, that is, the difference between its deemed cost and the amount charged to maintenance expense shall be charged to accumulated amortization. The amount of salvage recovered from materials replaced in such spot replacements is to be credited to Accumulated Amortization.

1309.17 From time to time, materials identified as reusable when first released from amortizable units of road and equipment property and consequently carried at cost in account 113 - Used Track Material in Store, may be disposed of by sale. In such cases, the deemed cost of the material sold less the sale proceeds is to be charged to Accumulated Amortization.

Transfer or Sales of Property to Related Parties

1309.18 When property is transferred or sold to a related party (as defined in section 1105.01) and the intent is that the property will be disposed of by the related party the cost of the property shall be recorded in account 39 until it is disposed of. The actual proceeds, less a reasonable charge by the related party for the service, would be used in accounting for the transaction.

Section 1310 Property Exchanges

1310.01 "An exchange is a reciprocal transfer between an enterprise and another entity that results in the enterprise's acquiring assets or services or satisfying liabilities by surrendering other assets or services or incurring other obligations". (Source: Opinion No. 29 of the Accounting Principles Board of the American Institute of Certified Public Accountants).

1310.02 A property exchange is an exchange involving non-monetary assets and liabilities, e.g., inventories, land, buildings, equipment, liability for rent collected in advance.

1310.03 In general, property exchanges should be accounted for on the basis of the fair value of the assets (or services) involved, as are monetary transactions. Thus, the cost of a property item acquired in exchange for another property is the fair value of the property surrendered. If the fair value of the property received is more clearly evident than the fair value of the property surrendered, then the former should be used to measure the cost.

1310.04 The basic principles prescribed above should be modified when:

a) Fair values of the assets exchanged cannot be determined within reasonable limits using all available evidence. Fair values should not be regarded as determinable if major uncertainties exist about the realizability of the value that would be assigned to an asset received in an exchange transaction accounted for at fair value.

b) The exchange is not the culmination of an earning process. The following transactions are considered as not culminating the earning process:

  • 1310.05 An exchange of a product or property held for sale in the ordinary course of business for a product or property to be sold in the same line of business. "Swapping" of inventories between enterprises should not be accounted for as sales.
  • 1310.06 An exchange of a productive asset not held for sale in the ordinary course of business for a similar productive asset or an equivalent interest in the same or similar productive asset. "Productive assets" are those held for use in the production of goods or services. "Similar productive assets" are productive assets of the same general type that perform the same function or that are employed in the same line of business.

1310.07 In the case of transactions referred to in (a), if neither the fair value of the asset given up nor the fair value of the asset received can be reasonably determined, the recorded amount of the asset given up may be the only available measure and would be used.

1310.08 In the case of transactions referred to in (b) the recorded amount of the asset given up should be used as the basis of accounting (after reducing the recorded amount, if appropriate, for any indicated impairment in value). Some of the transactions referred to in (b) may include a monetary consideration. If so, the recommended accounting would conform to the following:

  1. 1310.09 The recipient of monetary consideration in a transaction included in (b) will record a realized gain to the extent that the amount of the monetary receipt exceeds a proportionate share of the recorded amount of the asset given up. The proportionate share would be based on the ratio of the monetary consideration to the total consideration received (fair value of non-monetary asset received plus the monetary consideration) or, if more clearly evident, the fair value of the asset given up.
  2. 1310.10 The payor of monetary consideration should not recognize a gain on a transaction included in (b), but should record the asset received at the amount of the monetary consideration plus the recorded amount of the non-monetary asset surrendered.
  3. 1310.11 If a loss is indicated in a transaction described in (b) above including those involving partial monetary consideration as described in (i) and (ii) above, the whole of the indicated loss on the exchange should be recognized.

Section 1311 Amortization Accounting

Purpose of Amortization Accounting

1311.01 The purpose of amortization accounting is to allocate over the service life of amortizable property, in a systematic and rational manner, the service value of the property.

1311.02 Service life is the period of time over which services are expected to be rendered by the property. Service life commences when the property begins providing its intended service and ends upon its retirement for accounting purposes. In the case of rail and other reusable items, the service life may be broken into two or more periods for the purpose of determining rates for amortization of such items in more than one position.

1311.03 Service value is the excess of cost over estimated net salvage.

Property to be Depreciated

1311.04 Property included in all primary property accounts (with the exception of account 101 - Land and account 113 - Used Track Material In Store) is classed as amortizable property.

1311.05 Amortization charges shall be determined by applying one-twelfth of the approved rates to the investment in the related property accounts or groups of accounts at the end of the preceding month. Amortization charges shall be debited monthly to expenses or other appropriate accounts and credited to accounts for accumulated amortization.

Method of Accounting for Amortization

1311.06 Unless it can be clearly demonstrated that another method better reflects the pattern of use and benefit with respect to amortizable property, the Group Plan method shall be used. In applying the Group Plan method, the remaining life technique shall be used.

1311.07 In calculating amortization on investment recorded in accounts 171, 173 and 175, each category established in schedules A, C and H shall be considered a separate group. For all other types of investment, each property account or sub-account shall be considered a separate group.

1311.08 Where a property lease fulfills the accounting requirements for a capital lease i.e., the benefits and risks of ownership are in effect transferred to the lessee (see section 1312), but it is not expected at the outset of the lease that title will pass to the lessee at termination, the amount assigned as the capital cost of the leased property is considered to be a separate group whose cost is to be amortized over the term of the lease.

1311.09 Leasehold improvements are to be amortized over a period equal to the estimated economic life of the asset or the remaining term of the lease together with the first renewal period if it is probable that the lease will be renewed, whichever is shorter.

Approval of Rates of Amortization

1311.10 Carriers shall file with the Agency rates estimated to be appropriate for each property account or group of property accounts covering amortizable property. These rates shall be based on the estimated service values and estimated service lives of the property developed by studies of the carrier's history and experience and such engineering and other information as may be available with respect to future conditions.

1311.11 The rates when filed shall be accompanied by a statement showing the basis therefor and the method employed in the computation. The Agency shall approve the rates to be used in computing amortization and no other rates shall be used, except that carriers may use, on an interim basis, reasonable estimated rates for classes of property for which rates have not previously been approved. If such estimated rates are used in the preparation of financial results, the carrier is not required to restate these results upon the approval of amortization rates differing from the estimated ones.

Review of Rates

1311.12 For each property account or group of property accounts representing amortizable property, the carrier shall review the amortization rate at intervals of not more than seven years. Such reviews shall include studies (of the type described in section 1311.10) providing support for the rate filed. Records of such studies shall be filed with the Agency.

1311.13 When gross additions to, or retirements from, a property account or group of property accounts, over a five year period, exceed 15% of the gross investment in that account or group, the Agency may request a review of the rate be carried out within one year unless the rate has been reviewed within the five preceding years.

1311.14 If the estimated service lives of assets in a group have changed by 15% or more from one rate review to the next, the rate shall be reviewed within five years of the most recent review.

Section 1312 Leases

1312.01 A lease is the conveyance, by a lessor to a lessee, of the right to use a tangible asset usually for a specified period of time in return for rent.

1312.02 A capital lease is a lease that, from the point of view of the lessee, transfers substantially all the benefits and risks incident to ownership of property to the lessee.

1312.03 A sales-type lease is a lease that, from the point of view of the lessor, transfers substantially all the benefits and risks incident to ownership of property to the lessee and, at the inception of the lease, the fair value of the leased property is greater or less than its carrying amount, thus giving rise to a profit or loss to the lessor.

1312.04 A direct financing lease is a lease that, from the point of view of the lessor, transfers substantially all the benefits and risks incident to ownership of property to the lessee and, at the inception of the lease, the fair value of leased property is the same as its carrying amount to the lessor. A lease would not be precluded from being classified as a direct financing lease after it is renewed or extended even though the carrying amount of the property at the end of the original lease term is different from its fair value at that date.

1312.05 An operating lease is a lease in which the lessor does not transfer substantially all the benefits and risks incident to ownership of the property.

1312.06 The foregoing paragraphs provide general criteria for the identification of various types of leases for accounting purposes. It is desirable, however, that more precise guidelines be established and be followed in order to achieve uniformity of accounting among railway companies. Accordingly, the following supplementary criteria are established to assist in distinguishing operating leases from capital, sales-type and direct financing leases.

1312.07 Normally, a lease which has a term which is less than 75% of the economic life of the leased property or provides for minimum lease payments whose present value is less than 90% of the fair value of the leased property is to be considered an operating lease. Other leases are to be considered capital leases by the carrier as lessee or as sales-type or direct financing leases by the carrier acting as lessor.

1312.08 Leases having a term of three years or less and involving payments totaling $10,000 or less per annum may be classified as operating leases regardless of their nature.

1312.09 A carrier who intends to account for a lease in a way that violates any of these supplementary criteria shall report the facts and the proposed accounting treatment to the Agency to determine whether the proposed accounting treatment is acceptable.

Section 1400 Revenue Accounting Instructions

Section 1401 Revenue Recognition

The revenue accounts are designed to record all revenues which the carrier recognizes as earned in respect of rail transportation and operations incidental to rail transportation.

Freight Revenue Recognition

1401.01 Freight revenue is recognized on the percentage of completion method. Interline movements are deemed complete when the shipment is turned over to the connecting carrier. Costs associated with uncompleted portions of movements for which revenue has not been recognized shall be deferred.

Passenger Revenue Recognition

1401.02 Passenger revenue is recognized at the time of ticket use (or sale in the case of commuter traffic). Tickets sold and not used after two years should also be recognized.

Recognition of Revenue from Government Payments

1401.03 Revenue from government payments is recognized when it is capable of being estimated.

Section 1402 Revenue Adjustments

1402.01 All adjustments to revenue are to be recorded in the revenue accounts to which they apply except that losses resulting from inability to collect amounts receivable from customers are to be charged to account 9 - Allowance for Doubtful Accounts.

Section 1500 Expenses Accounting Instructions

Section 1501 Natural Expense Categories

1501.01 The expense accounts are designed to record the expenses of furnishing rail transportation service. In addition to rail operating costs, such expenses include maintenance and amortization of the plant used in such service, costs of related transportation services, and related administrative and other general costs.

Natural Expense Categories

1501.02 All expense accounts are to be subdivided into "Labour", "Material" and "Other" components.

1501.03"Labour" consists of compensation earned by employees, including employee benefits (as captured in accounts 819 to 831), for services performed, and for vacations, holidays and sick time, and other payments for time not worked.

1501.04 "Material" consists of the cost of items installed or commodities consumed which are charged to expense, including charges to expense for all materials, amortization of plant and equipment, small tools, supplies, fuels, lubricants, purchased standard stationery and forms, foreign freight-in on materials and supplies, discounts on purchases, provincial sales tax and similar items.

1501.05 "Other" consists of any expense components not included in "Labour" and "Material". This includes all payments for purchased services, including contract work, utilities, transportation and communications. Travel and personal expenses of employees are included in this category. It also includes payments for loss and damage claims, taxes (other than those directly related to labour or material) and charges from related corporate divisions for services performed.

Section 1502 Geographic Cost  Centres

1502.01 The text of certain UCA accounts specifies that the expenses are to be recorded by geographic cost centre. This term is used to denote the narrowest geographic unit at which railway companies can reasonably match costs to their relevant operating activities in an accurate and efficient way so as to satisfy the regulatory requirement for cross-sectional analysis in order to keep the unit cost variabilities reasonably up-to-date.

Geographic cost centres are required in order to perform cross-sectional analysis that defines the causal nature of expenses. Railways are expected to cooperate with Agency staff in defining and implementing cost centres as identified in the text of the accounts.

Costs not Attributable to Geographic Cost Centres

1502.02 It is recognized that not all costs recorded in accounts which require reporting by geographic cost centre can reasonably be attributed to particular geographic cost centres. To the extent that costs are incurred at the regional and system levels or at other levels of aggregation higher than the geographic cost centre, they may be recorded as such. The following types of cost, however, should not be regarded as regional expense: costs of way and structure maintenance gangs who are directly responsible to regional-level officers, and costs which can be identified with a particular supervisor or foreman whose territory includes parts of two or more geographic cost centres. In both of these cases, expenses should be attributed to the particular cost centres in which the work was done. To the extent possible, this should be done by using specific records of work performed; otherwise, through a reasonable method of allocation.

Natural Expense Categories

1502.03 The instructions outlined in section 1501.02 shall apply to amounts recorded by geographic costs centre and to amounts recorded at other levels in accordance with Instruction 1502.02.

Equipment-Type Schedules

1502.04 Several equipment maintenance and servicing accounts are to be recorded by equipment-type and by geographic cost centre. In these cases, the provision for geographic cost centre recording applies only to the total amount in the account, not to the individual equipment-type categories.

Fuel Accounts

1502.05 Fuel costs are to be recorded by type of service in accounts 619, 623, 627 and 651. Records are also to be maintained of the total fuel costs (i.e., aggregate of accounts 619, 623, 627 and 651) by geographic cost centre.

Section 1503 Vacation Pay

1503.01 Vacation pay expense is to be recorded in the accounts in which wages and salaries are recorded.

Section 1504 Recoverable Expenses

1504.01 Recoveries of amounts included in railway expense accounts shall be credited to the accounts to which the expenses have been charged. Sufficiently detailed records of recoverable amounts shall be kept to allow the inclusion or exclusion of such amounts in cost analyses, depending on the logic of the particular analysis concerned.

Section 1505 Cost of Repairs

1505.01 The cost of repairs to be included in maintenance accounts shall include:

  • the cost of inspecting to determine what repairs are necessary;
  • the cost of adjusting, repairing or replacing parts;
  • the cost of inspections or tests to determine that repairs were properly made and that repaired item is ready for service;
  • the cost of constructing and removing false work or temporary tracks in connection with maintenance.

1505.02 For purposes of the maintenance accounts the elements of expense comprising cost of repairs - such as labour, material and supplies, work train service, vessel work service, special machine service, transportation, contract work, privileges, protection from casualties, injuries and damages and other analogous items - shall include all applicable elements described in sections 1303.07 through 1303.22. Royalties paid for patent rights on mechanical appliances used in repairs shall be included in the cost of repairs.

Section 1506 Tools and Supplies

1506.01 To the extent possible, the cost of tools and supplies used in maintenance work shall be included in the accounts corresponding to the structures or equipment on which these items were used. Where this is not possible, such costs shall be included in accounts 419 - Tools and Supplies and 575 - Shop Overheads.

Section 1507 Work Train Services

1507.01 The costs of work train service used in ballast maintenance shall be included in account 409 - Ballast. All other work train service costs attributable to track and roadway maintenance shall be included in account 401 - Track and Roadway Maintenance.

Section 1508 Repair of Tracks

1508.01 With the exception of repairs to tracks on car floats, all costs of track repair are to be recorded in accounts 401, 403, 405, 406, 407 and 409, regardless of where the track is located.

Section 1509 Building Maintenance

1509.01 The expense accounts in the Buildings group (accounts 431, 433, 435, 437) do not include costs for all buildings owned or used by the railway company. Maintenance expenses of buildings which form a part of certain other facilities (signals, communication, terminals, fuel stations and multi-use power plants) are included in the maintenance expenses of such facilities.

Section 1510 Equipment Maintenance and Servicing

1510.01 Equipment maintenance and servicing costs include the cost of maintaining and servicing the railway company's own equipment and non-recoverable expense for the maintenance and servicing of the equipment of others used in the railway company's service.

1510.02 The equipment repair accounts shall include foreign railway companies' freight charges for transporting the railway company's equipment to shops for repairs and for transporting such equipment to the railway company's line after repairs have been made. Repair costs shall include the costs of the railway company's work train service in transporting equipment to and from shops and of operating switching locomotives when these are exclusively assigned to shops. It shall not include, however, the cost of transporting equipment to and from shops in revenue service trains.

1510.03 Cleaning of equipment in preparation for repair work as well as cleaning and other activities necessary to prepare equipment for service after repairs are considered part of repairs.

1510.04 Inspection to determine whether repairs are necessary is considered part of repair (as per section 1505). However, where such inspection cannot reasonably be separated from servicing activities, the carrier shall include the cost in the equipment servicing accounts.

Section 1511 Expenses Common to Different Services

1511.01 The Railway Operation activity accounts are generally service-specific: separate accounts are provided for yard, road freight and road passenger services for the most important elements of operating expense. Some operating expenses may, in fact, be common to two or more types of service. An example of this is the cost of fuel consumed by locomotives while idling between services. In all such cases, costs shall be allocated to accounts on some reasonable basis.

Section 1512 Building Operating Expenses

1512.01 The cost of incidental cleaning of buildings grounds, platforms and other related facilities and the cost of heat, electric power and miscellaneous supplies for buildings are considered operational expenses. Such costs are not to be included in the building maintenance accounts. Wherever possible, these costs should be charged to the operation using the building or related facility. Where this is not possible, such costs should be included in account 709, Building Operating Expenses.

Section 1513 Corporate and Administrative Charges

1513.01 The following instructions apply only when the railway is a division of a larger corporate enterprise.

1513.02 Costs related to corporate management personnel with no involvement in rail are to be excluded from the railway accounts. An equitable share of the costs associated with corporate management personnel with a partial involvement in rail is to be included in the railway accounts. All costs associated with management personnel fully engaged in rail activities are to be included in the rail accounts. When such personnel are temporarily assigned to operations other than rail, the costs associated with the assignment are to be excluded from the rail accounts.

1513.03 When there are charges to a rail division from other corporate divisions, the carrier shall keep information supporting these charges in reasonable detail. The share of these costs attributed to rail must be based upon such factor(s) as are logically related to the various major components of the corporate and administrative charges in question (e.g., number of personnel, revenue, investment, expenses, or direct measures such as time applied).

Section 1514 Rail Share of Corporate Income Taxes

1514.01 When the railway company is part of a corporate body, the methods of allocating income taxes as set out in the accounting principles generally accepted in Canada with respect to "Income Taxes" shall be used.

Section 1515 Insurance

1515.01 When the carrier transfers the risk of loss from fires and other accidents to insurers in consideration for premiums paid, the incurred premium costs are to be charged to account 851 - Insurance. Recoveries on such insurance policies or contracts are to be credited against the expense or asset account to which the loss is related.

1515.02 When the risks of loss are not transferred (self-insured) by the carrier to insurers, the costs of repairing damage are to be charged to the appropriate expense account as wages, materials or other services as the case may be. Assets destroyed are to be accounted for as if disposed of for the amount realized as salvage. Where claims are met for damages suffered by persons or to the property of others and such claims are self-insured the costs thereof are to be charged to the appropriate Injuries to Persons, Damage to Property, or Loss and Damage account.

Section 1516 Provincial Sales Taxes

1516.01 As a general rule such taxes should be allocated to the accounts to which the related cost of materials and, in some cases, of services, are charged. Accordingly it follows that if provincial sales taxes are fully allocated no balance will arise in account 843 - Provincial Sales Taxes. It is recognized that the two major railway companies, CN and CP, will encounter difficulty in fully allocating provincial sales taxes and in their cases the allocation process is limited to such taxes as are related to the cost of materials and services charged to Property account 29 and to Locomotive Fuel accounts 619, 623, 627 and 651.

Section 1517 Goods and Services Tax/ Harmonized sales Tax (GST/HST)

1517.01 In general, the Goods and Services Tax/Harmonized Sales Tax paid on the purchases of goods and services should be eligible for an input tax credit; therefore, it must not be included in the cost, but registered as a current asset (account #7 - Other Accounts Receivable). Taxes paid on purchases, ineligible for an input tax credit, must be included in the cost of the goods and services acquired.

Section 1518 Allocation of Shared Costs

1518.01 As a general rule, expenses reported according to this UCA, should be assigned to specific UCA accounts based on direct assignment.

1518.02 However, there may exist instances where an expense has to be allocated to two or more UCA accounts.  An example would be administrative expenses that are applicable to both a specific function (i.e. Equipment Maintenance Administration),and to General Administration. Where such expenses cannot be assigned directly, the UCA requires a reasonable or equitable share of costs to be allocated to the relevant accounts.

1518.03 For the purposes of these clauses in the UCA, an "equitable and/or reasonable share of costs" means a rational allocation of costs between UCA accounts based on a justifiable and consistent approach, which can be described and defended by the railway company. 

1518.04 Where a railway company elects to amend its' approach to such allocations, the company shall provide to the Agency its' justification for such an amendment.

Section 1600 Operating Statistics Instructions

Section 1601 General Instructions

1601.01 Operating statistics are designed to provide measurements of railway operations and certain aspects of railway plant for cost analysis and other uses.

Methods of Development

1601.02 Operating statistics must be developed in a logical and auditable fashion. Records must be maintained in a manner that will enable external examiners to trace the development of statistical data from the original source.

Congruity with Accounts

1601.03 Operating statistics are to be defined and measured so as to be fully congruous with the accounts. They are to be developed in a form that enables them to be related to the accounts, primarily through the cost analysis process. Methods of development must be consistent with the costing use or uses of each statistic.

Accuracy of Statistics

1601.04 Operating statistics are to be accurate in terms of both the quality of source data and the correctness of any arithmetic or mathematical operations on the data. Where possible, quantitative measures of the degree of accuracy associated with particular statistics or with any data base used in the development of operating statistics are to be developed.

Consistency of Statistics

1601.05 Operating statistics must be developed in a fashion so as to be consistent among different parts of a railway company and consistent in time (i.e. consistent from one year to another). The Agency is to be notified of any significant change in the method of development of any statistic.

Uses of Operating Statistics

1601.06 Operating statistics are to be defined and measured in a manner which is satisfactory for their use in the development of unit costs in cost analysis. When used as a measure of work load for application of unit costs to particular branch lines, movements or services, operating statistics are to be developed in a manner consistent with their use in unit cost development.

1601.07 Certain statistics may be defined or measured differently for certain non-costing purposes. In these cases, the differences are to be clearly indicated in order to avoid any inappropriate use of the statistics involved.

Section 1602 Instructions Relating to Particular Groups of Statistics

1602.01 Instructions in this group are applicable to specific operating statistics. The particular statistic or statistics covered by each instruction is indicated in the text of the instruction itself.

Frequency of Development

1602.02 Statistics developed from the conductor's journal or from the waybill shall be developed monthly. As an aid to accuracy, monthly figures shall be examined for any discrepancies, anomalies or significant unexplained deviations from results expected.

1602.03 If after the development of any month's statistics, errors are found in the statistics, these errors shall be corrected. Annual totals reported to the Agency and used in cost analysis shall embody all such corrections.

Records Rejected

1602.04 For computerized data bases used in the development of operating statistics from waybills and conductor's journals, records shall be maintained of data rejected due to uncorrected error conditions.

Treatment of Equipment on Capital Lease

1602.05 In the development of statistics related to rail equipment (Locomotive Miles, Freight Car Miles, Freight Car Days, Passenger Car Miles, Passenger Car Days) items of equipment on capital lease to the carrier shall be regarded as owned by the carrier.

VIA Train Operations

1602.06 In the development of train operation statistics (section 1803), VIA trains shall be regarded as part of the operating carrier's operations.

Section 1700 Chart of Accounts

Section 1701 Balance Sheet Accounts

Assets

Current Assets
Account Number Account Description

1

Cash

3

Temporary Investments

5

Accounts Receivable – Trade

7

Other Accounts Receivable

9

Allowance for Doubtful Accounts

11

Material and Supplies

13

Prepaid Expenses

15

Other Current Assets

17

Future Income Taxes (Current)

 

1 Cash

Include cash on hand and unrestricted demand deposits with banking institutions and trust companies.

3 Temporary Investments

Include term deposits with banks and trust companies, short-term treasury bills and other securities which have a ready market.

5 Accounts Receivable - Trade

Include all balances from customers, other carriers and agents and employees authorized to collect or hold receipts, which are due within one year and arise in the ordinary course of business.

7 Other Accounts Receivable

Include all balances due within one year arising from transactions other than those directly related to normal revenues, such as accrued interest receivable, dividends receivable, negotiated settlements, sales of property, the current part of long-term receivables, claims, input tax credits in the case of the Goods and Services Tax, etc.

9 Allowance for Doubtful Accounts

Include an adequate allowance for that portion of accounts receivable included in accounts 5 and 7 whose collection is doubtful.

11 Material and Supplies

Include all materials, supplies, fuel and other items held for future use or disposal, other than track material recorded in account 113 - Used Track Material in Store.

13 Prepaid Expenses

Include the unamortized portion of all prepaid expenses.

15 Other Current Assets

Include all accountable advances to agents, officers, employees, associations, bureaus, deferred costs related to uncompleted freight movements, etc., and any other assets of a current nature whose inclusion is not expressly provided for elsewhere.

17 Future Income Taxes (Current)
Include the amounts of income tax benefits arising in respect of:

  1. deductible temporary differences;
  2. the carryforward of unused tax losses; and,
  3. the carryforward of unused income tax reductions, except for Investment Tax Credits.
Non-Current Assets
Account Number Account Description

23

Long-Term Accounts Receivable

25

Long-Term Investments

27

Long-Term Intercorporate Investments

29

Property

31

Construction in Progress

33

Accumulated Amortization − Property

35

Deferred Charges

36

Future Income Taxes (Non-Current)

37

Intangible Assets

38

Net Pension Asset

39

Retired Property

 

23 Long-Term Accounts Receivable

Include all balances due after one year.

25 Long-Term Investments

Include all portfolio investments.

27 Long-Term Intercorporate Investments

Include investments in and advances to subsidiary companies, and corporate and unincorporated joint ventures the operations of which are deemed to be an integral part of the rail transportation system of the company, except where such investments represent, in substance, the acquisition of property included in account 29.

29 Property

Include the cost of all property recorded in accounts 101 to 195.

31 Construction in Progress

Include the cost of assets not yet available for use in rail transportation operations.

Reference: Instruction 1304

33 Accumulated Amortization – Property

Include accumulated amortization and record in sub-accounts as follows:

  • 33.1 Accumulated amortization recorded in accounts 202 to 295.
  • 33.2 Unallocated accumulated amortization

Reference: Instruction 1314

35 Deferred Charges

Include the unamortized amount of all deferred charges such as debt discount and expense, organization expense, deferred development costs and unabsorbed expenses relating to operations of gravel pits, sand pits and quarries.

36 Future Income Taxes (Non-Current)

Include the cost of long-term future income taxes less amounts already paid in respect of these income taxes.

37 Intangible Assets

Include the unamortized amount of all intangible assets such as good will, franchises, patent rights, copyrights and trademarks.

38 Net Pension Asset 

Include the net book value of the pension asset, calculated as the difference between account 197, Pension Asset-Gross Investment and account 297, Pension Asset-Accumulated Amortization.

Report in schedule F 52, Net Pension Asset

Reference: Decision No. 97-R-2012, Annual Report Schedule F 52

39 Retired Property

Include the cost of land and other non-amortizable property no longer required for transportation purposes but retained by the railway company.

Include the estimated value of salvage recoverable from retired property other than land when the recovery of the salvage is deferred for any reason.

Record in sub-accounts as follows:

  • 39.1 Land and Other Non-Amortizable Property
  • 39.2 Other

Liabilities

Current Liabilities
Account Number Account Description

41

Bank Loans

45

Accounts Payable

47

Accrued Liabilities

49

Notes and Other Loans Payable

51

Income and Other Taxes Payable

52

Future Income Taxes (Current)

53

Dividends Payable

54

Stock-Based Employee Compensation Liabilities- Current

55

Deferred Revenue

57

Long-Term Debt Maturing Within One Year

58

Lease Obligations Due Within One Year

59

Other Current Liabilities

 

41 Bank Loans

Include all indebtedness to banks payable on demand or within one year.

45 Accounts Payable

Include all balances with suppliers, employees, interline companies or other creditors which are due within one year.

47 Accrued Liabilities

Include all estimated balances owing within one year which arise from the incurrence or recognition of expenses not supported by a demand for payment.

49 Notes and Other Loans Payable

Include all such obligations due on demand or within one year.

51 Income and Other Taxes Payable

Include all taxes on income, taxes collected on behalf of others, and other taxes due within one year, and Goods and Services Tax payable.

52 Future Income Taxes (Current)

Include the amounts of income taxes arising from taxable temporary differences.

53 Dividends Payable

Include all dividends declared and not paid.

54 Stock- Based Employee Compensation Liabilities- Current

Include the amounts awarded to employees under profit sharing and stock option plans, including stock appreciation rights (SARs) that call for settlement in cash.

55 Deferred Revenue

Include all balances pertaining to revenues billed or collected but not earned.

57 Long-Term Debt Maturing Within One Year

Include that portion of long-term debt which matures within one year or has matured but is unpaid.

58 Lease Obligations Due Within One Year

Include that portion of leases which is due within one year or is due but is unpaid.

59 Other Current Liabilities

Include all liabilities of a current nature whose inclusion is not expressly provided for elsewhere.

Non-Current Liabilities
Account Number Account Description Interpretations

61

Deferred Liabilities

 

63

Future Income Taxes (Non-Current)

 

65

Long-Term Debt

 

67

Lease Obligations

 

69

Other Deferred Credits − Long Term

 

71

Minority Shareholders' Interest in Subsidiary Companies

 

73

Donations and Grants

 

74

Investment Tax Credits

 

75

Stock-Based Employee Compensation Liabilities-Non-Current

 

 

61 Deferred Liabilities

Include all liabilities of a long-term nature whose inclusion is not expressly provided for elsewhere.

63 Future Income Taxes (Non-Current)

Include the amounts of long-term income taxes arising from taxable temporary differences.

65 Long-Term Debt

Include the long-term balance of all mortgages and other long-term obligations such as bonds, debentures and similar securities.

67 Lease Obligations

Include the long-term balance of all capital lease obligations.

69 Other Deferred Credits – LongTerm

Include the unamortized balance of premiums derived from the issuance of debt securities at prices in excess of their face amount and other deferred credits not provided for elsewhere.

71 Minority Shareholders' Interest in Subsidiary Companies

Include minority shareholders' interest in the capital and other equity accounts of consolidated subsidiary companies.

73 Donations and Grants

Include the unamortized amounts of all donations and grants received as assistance related to the acquisition of property.

Include:

  • all such amounts received after January 1, 1982;
  • any such amounts received under the Prairie Branch Line Rehabilitation Program prior to January 1, 1982.

74 Investment Tax Credits

Include the unamortized amounts of all Investment Tax Credits related to eligible property acquired on or after January 1, 1985.

75 Stock-Based Employee Compensation Liabilities- Non-Current

Include the amounts awarded to employees under profit sharing and stock option plans, including stock appreciation rights (SARs) that call for settlement in cash.

Equity

Shareholder ’s Equity
Account Number Account Description

81

Share Capital

83

Contributed Surplus

85

Retained Earnings

87

Net Investment in Rail Assets

 

81 Share Capital

Include the balances resulting from the issuance, redemption and acquisition of shares of each class.

83 Contributed Surplus

Include amounts paid in by shareholders in excess of amounts allocated to share capital. Also include gains on forfeited shares, proceeds from donated shares and credits arising from redemption or conversion of shares at less than the amount recorded as share capital. Also include as deductions from contributed surplus any charges which are the direct opposite of credits previously carried to contributed surplus and any charge made to eliminate or reduce a deficit, when made with the approval of shareholders.

While contributed surplus, in general, arises from dealings with shareholders, it may, in certain circumstances, include contributions of capital from other sources (e.g., donations and grants received in respect of property acquired prior to 1982).

Record in sub-accounts as follows:

 
83.1 Donations and grants received prior to 1982, other than amounts received under the Prairie Branch Line Rehabilitation Program prior to January 1, 1982 (Reference: account 73).
 
83.2 Other Contributed Surplus.
 
83.3 Stock-based compensation expense related to profit sharing and stock option plans, including stock appreciation rights (SARs) that call for settlement by granting equity instruments.
 
83.4 Revaluation of assets and liabilities resulting from push-down accounting.

85 Retained Earnings

Include the balance of retained earnings representing the accumulated balance of income less losses arising from the operation of the business, after taking into account dividends, refundable taxes and other amounts that may properly be charged or credited thereto.

87 Net Investment in Rail Assets

This account is to be used when Canadian rail operations, as defined in section 1203, are carried on by a separate rail division or branch of a corporation. The account will reflect transactions between the Rail Division and its Corporate Head Office.

Section 1702 Property Accounts

The property accounts are sub-accounts of Balance Sheet account 29 – Property and are divided into two activity categories: Way and Structures, and Equipment.

Way and Structures

This category consists of four groups of accounts. All Way and Structures accounts are to be recorded by geographic cost centre, except account 113 – Used Track Material in Store.

Track and Roadway

This group consists of accounts which record the cost of property associated with the carrier's track and roadway.

Track and Roadway
Account Number Account Description

101

Land

102

Grading

103

Rail

105

Ties

106

Paved Concrete Trackbed (PACT System)

107

Other Track Material

109

Ballast

111

Track Laying and Surfacing

113

Used Track Material in Store

115

Bridges

117

Culverts

119

Tunnels

121

Fences, Snow Sheds and Rock Sheds

123

Public Improvements

125

Other Right-of-Way Property

 

101 Land

Include:

  • the cost of land acquired or leased by the railway company of an area necessary and sufficient for railway operations or appurtenances and the attendant costs of water and riparian rights;
  • the cost of irregular parcels of land, acquired in conjunction with land acquired for railway operations, which have no commercial value.

102 Grading

Include:

  • the cost of clearing and grading the roadway and of constructing protection for the roadway, tracks, embankment and cuts;
  • the cost of fill, including the cost of temporary trestles as well as all or part of permanent bridges or trestles converted by filling into an earth embankment;
  • the cost of clearing, grubbing and excavating when converting a tunnel into an open cut.

Record by geographic cost centre (section 1502)

103 Rail

Include:

  • the cost of rails laid;
  • the cost of welding continuously welded rail;
  • the cost of rail end hardening in conjunction with laying new rail.

Record in sub-accounts as follows:

  • 103.2 Rail in first position.
  • 103.3 Rail in other than first position.

Transposition of rail on curves is not considered a change in position for the purpose of accounting for rail.
Do not include:

  • the cost of rail used in the construction of car floats;
  • the cost of rail in temporary tracks.

Record by geographic cost centre (section 1502)

105 Ties

Include:

  • the cost of cross, switch, bridge and other track ties used in tracks for the movement or storage of locomotives and cars.

Record by type of tie as follows:

Do not include:

  • the cost of ties used in the construction of car floats;
  • the cost of ties used in temporary tracks.

Record by geographic cost centre (section 1502)

106 Paved Concrete Trackbed (PACT System)

Include the cost of labour and material associated with the construction of concrete slabs (PACT system).
Do not include the cost of rail and all track fastening materials.

Record by geographic cost centre (section 1502)

107 Other Track Material

Include the cost of material used in tracks for the movement and storage of locomotives and cars except material chargeable to accounts 102, 103, 105 and 109.

Record by type of other track material as follows:

  • 107.1 Rail fastenings.
  • 107.2 Other.

Do not include:

  • the cost of other track material used in the construction of car floats;
  • the cost of other track material used in the construction of temporary tracks.

Record by geographic cost centre (section 1502)

109 Ballast

Include:

  • the cost of material used in ballasting tracks;
  • the cost of work train service for the laying and distribution of the ballast.

Do not include:

  • the cost of ballast used in the construction of temporary tracks;
  • the cost of earth placed to form a crown in the middle of the track;
  • the cost of ballast material placed on the decking of bridges solely for fire protection purposes.

Record by geographic cost centre (section 1502)

111 Track Laying and Surfacing

Include the cost of labour in unloading, distributing and installing ties, rail and other track material in the construction of new track and work train service in connection with the delivery and distribution of the material.

Do not include:

  • costs related to temporary tracks or tracks on car floats;
  • the cost of work train service delivering and distributing ballast.

Record by geographic cost centre (section 1502)

113 Used Track Material in Store

Include the cost of track material which has been used and is expected to be re-used.

Record by geographic cost centre (section 1502)

115 Bridges

Include:

  • the cost of foundations and structures of bridges and trestles which carry tracks over watercourses, crossings, ravines, public and private highways and other railways;
  • the cost of ballast material placed on the decking of bridges solely for the purpose of fire protection.

Do not include the cost of all or part of a bridge or trestles converted by filling into an earth embankment.

Record by geographic cost centre (section 1502)

117 Culverts

Include the cost of structures and lining of culverts which pass under the tracks.

Record by geographic cost centre (section 1502)

119 Tunnels

Include the cost of tunnels and subways for the passage of trains and the necessary ventilation, lighting apparatus and safety devices therein.

Do not include:

  • the cost of signal devices;
  • the cost of tracks, including guard rails.

Record by geographic cost centre (section 1502)

121 Fences, Snow Sheds and Rock Sheds

Include:

  • the cost of fences, farm gates, cattle guards, aprons and hedges on property not previously fenced;
  • the cost of snow sheds and rock sheds, and the initial cost of planting protective tree screens for the track.

Do not include:

  • the cost of fences, other than right-of-way or boundary fences, around stockyards, fuel and water stations, and other building sites;
  • the cost of signs indicating bridges, signals, stations and other structures (these are to be included in the structures in question);
  • the cost of crossing signals and crossing gates.

Record by geographic cost centre (section 1502)

123 Public Improvements

Include:

  • Amounts assessed to the carrier under governmental authority for the cost of public crossing under or over the railway right-of-way where the carrier is required to bear all or part of the cost of maintenance of the crossing;
  • Costs borne by the carrier in excess of the cost of railway facilities in connection with joint public improvement projects.

Record by geographic cost centre (section 1502)

125 Other Right-of-Way Property

Include any costs of facilities installed for improvement projects not otherwise included in these accounts.
Do not include costs of public improvement projects, which are included in account 123, Public Improvements.

Record by geographic cost centre (section 1502)

Buildings

This group consists of accounts which record the cost of buildings, their machinery, power systems and moveable equipment.

Buildings
Account Number Account Description Interpretations

131

Office and Common Buildings

 

133

Office and Common Buildings Moveable Equipment and Machinery

 

135

Passenger Stations

 

137

Passenger Station Moveable Equipment

 

139

Roadway Buildings

 

141

Roadway Building Machines and Moveable Equipment

 

143

Equipment Repair Shops

 

145

Shop Machinery and Moveable Equipment

 

147

Leasehold Improvements

 

 

131 Office and Common Buildings

Include:

  • the cost of office buildings used principally for general administration;
  • the cost of yard buildings, freight customer service centres, stations used principally to house train order operators and any buildings used principally in support of rail operations not provided for elsewhere;
  • the cost of office buildings used in support of more than one rail activity;
  • the cost of buildings housing multi-use power plants (Reference:account 465);
  • the cost of buildings functioning as both stations and office buildings where such costs cannot reasonably be assigned to one of the two functions;
  • the cost of built-in fixtures necessary to equip for service buildings in any of the above categories.

Do not include:

  • temporary buildings erected on construction sites;
  • office buildings attached to shops or roadway buildings which serve those functions.

Record by geographic cost centre (section 1502)

133 Office and Common Buildings Moveable Equipment and Machinery

Include:

  • the cost of moveable equipment necessary to equip for service buildings for which investment is recorded in account 131;
  • the cost of power transmission systems with multi-use power plants.

Record as follows:

133.1 General purpose computers.

  • 133.2 Power plant machinery (associated with multi-purpose power plants).
  • 133.3 Other moveable equipment.
  • 133.4 Power transmission systems (associated with multi-purpose power plants).
  • 133.5 System and application software.

Record by geographic cost centre (section 1502)

135 Passenger Stations

Include the cost of buildings used principally as passenger stations and all built-in fixtures necessary to equip them for service.

Record by geographic cost centre (section 1502)

137 Passenger Station Moveable Equipment

Include the cost of passenger station moveable equipment necessary to equip passenger stations for service.

Record by geographic cost centre (section 1502)

139 Roadway Buildings

Include the cost of roadway shops and other buildings which support the carrier's road maintenance and construction functions including all built-in fixtures necessary to equip them for service.

Record by geographic cost centre (section 1502)

141 Roadway Building Machines and Moveable Equipment

Include the cost of machinery and moveable equipment necessary to equip for service buildings for which investment is recorded in account 139.

Record by geographic cost centre (section 1502)

143 Equipment Repair Shops

Include the cost of buildings used as equipment repair shops, engine houses and store houses for material for maintenance of equipment, including foundations except special foundations for shop machines. Include the cost of shop offices and any other buildings used principally in support of the equipment repair function.

Record by geographic cost centre (section 1502)

145 Shop Machinery and Moveable Equipment

Include the cost of shop machinery (including the cost of special foundations and installations) and of moveable equipment and other apparatuses necessary to equip for service buildings for which investment is recorded in account 143.

Record by geographic cost centre (section 1502)

147 Leasehold Improvements

Include the cost of improvements made to property which is held under lease, where such improvements revert to the lessor upon termination of the lease and the lessee is not reimbursed by the lessor for the improvements. Do not include any such cost related to railway lines held under long-term lease (i.e. where the term of the lease exceeds the normal service life of the assets involved).

Record by geographic cost centre (section 1502)

Signals, Communications and Power

This group consists of accounts which record the costs of signals, rail communications and electrified rail systems and their attendant power systems.

Signals, Communications and Power
Account Number Account Description Interpretations

149

Signals

 

151

Rail Communication Systems

 

 

149 Signals

Include:

  • the cost of signals and interlocking apparatus for governing the movements of locomotives, cars and trains;
  • the cost of towers and other directly connected buildings, furniture, fixtures and machinery used primarily for signal or interlocking functions;
  • the cost of roadway installations for train control and remote control including the cost of initial tests for such installations;
  • the cost of power plants and transformers used primarily for the operations of signals and interlockers;
  • the cost of crossing signals and crossing gates;
  • the cost of specialized hump yard devices including retarders, compressors and electronic equipment;
  • the cost of other signal devices including slide detectors, hot box detectors and ACI scanners;
  • the cost of end train units (ETU) and related systems.

Record by type of devices as follows:

  • 149.1 Track signals.
  • 149.2 Hump yard devices.
  • 149.3 Crossing protection.
  • 149.4 Other.
  • 149.5 End train units (ETU) and related systems.

Do not include:

  • the cost of buildings in which signal and interlocking apparatus is located whose primary purpose is related to other than signal type functions;
  • the cost of track material used in connection with interlockers;
  • the cost of labour expended in the installation of connections between the switch stand and the derail, and the cost of the devices for throwing the derail, when derails are arranged so as to be thrown from switch stands.

Record by geographic cost centre (section 1502)

151 Rail Communication Systems
Include the cost of rail telegraph, telephone, radio, radar, inductive train communication and other rail communication systems, including terminal equipment and buildings assigned principally to rail communications operations.

Record by type of facility or device as follows:

  • 151.1 Buildings.
  • 151.3 Other communication devices.
  • 151.4 Pole lines.

Do not include:

  • the cost of radio, radar and train phone equipment permanently attached to locomotives, cars, work equipment, and other rolling stock or floating equipment used in water transfer service;
  • the cost of radio equipment for instruction, advertising or entertainment;
  • the cost of communication systems of limited extent, not connected with other systems, used for special purposes and usually installed within a single building, group of or within the limits of a station, shop or yard;
  • the cost of test sets.

Terminals and Fuel Stations

This group consists of accounts which record the cost of terminals and fuel stations.

Terminals and Fuel Stations
Account Number Account Description Interpretations

157

Intermodal Terminals

 

159

Rail Freight Terminals

 

161

Marine Terminals

 

163

Fuel Stations

 

 

157 Intermodal Terminals

Include the cost of intermodal terminals and the fixtures and appurtenances necessary to equipment them.

Record by geographic cost centre (section 1502)

159  Rail Freight Terminals

Include the cost of pool car, bulk, auto and other rail freight terminals, including:

  • the cost of buildings and other fixed facilities;
  • the cost of fixtures and appurtenances, including moveable equipment, necessary to equip such terminals.

Include the cost of passenger station moveable equipment necessary to equip passenger stations for service.

Record by geographic cost centre (section 1502)

161 Marine Terminals

Include:

  • the cost of wharves, docks, slips, floats, bridges and other landings for vessels including the cost of necessary dredging;
  • the cost of float bridge machinery;
  • the cost of piling, pile protection, cribs, cofferdams, walls and other necessary devices and apparatus for the operation or protection of wharves and docks;
  • the cost of rail marine buildings and the fixtures and appurtenances necessary to equip such buildings;
  • the cost of terminal handling equipment required at rail marine terminals.

Do not include:

  • the cost of land on which rail marine terminals are built;
  • the cost of rail, ties, ballast and other track material used in the construction of rail marine terminals.

Record by geographic cost centre (section 1502)

163 Fuel Stations

Include the cost of structures, facilities and appliances necessary to equip for service, stations for supplying fuel to locomotives, rail diesel cars and steam generators.

Record by geographic cost centre (section 1502)

Equipment

This category consists of four groups of accounts designed to show the cost of equipment used in revenue service and other equipment used by the carrier.

Rolling Stock – Revenue Service

Revenue Service – This group consists of accounts which record the cost of locomotives, freight cars and passenger cars.

Rolling Stock – Revenue Service
Account Number Account Description Interpretations

171

Locomotives

 

173

Freight Cars

 

175

Passenger Cars

 

 

171 Locomotives

Include the cost of locomotives, generator units and robot cars purchased, built or leased by the railway company.

Record by type of locomotive as set out in schedule A. (Section 1901)

173  Freight Cars

Include the cost of freight cars of all classes, purchased, built or leased by the railway company.

Record by type of freight car as set out in schedule C. (Section 1903)

175 Passenger Cars

Include the cost of passenger cars of all classes, purchased, leased or built by the railway company.

Record by type of passenger car as set out in schedule H. (Section 1908)

Intermodal Equipment

This group consists of accounts which record the cost of intermodal terminal handling equipment, trailers, semi-trailers, containers, chassis and bogies, and automotive tractors.

Intermodal Equipment
Account Number Account Description Interpretations

177

Intermodal Terminal Handling Equipment

 

179

Trailers, Semi-Trailers, Containers, Chassis and Bogies

 

181

Highway Tractors

 

 

177 Intermodal Terminal Handling Equipment

Include the cost of terminal handling equipment used to transfer containers, trailers and semi-trailers to and/or from rail cars including mobile gantry cranes, top lifters and yard tractors.

179 Trailers, Semi-Trailers, Containers, Chassis and Bogies

Include the cost of trailers, semi-trailers, containers, chassis and bogies used in intermodal rail operations.

181 Highway Tractors

Include the cost of highway tractors used in intermodal transportation.

Work Equipment and Roadway Machines

This group consists of accounts which record the cost of work equipment and roadway machines.

Work Equipment and Roadway Machines
Account Number Account Description Interpretations

183

Roadway Machines

 

187

Work Equipment

 

189

Other Non-Revenue Rolling Stock

 

 

183 Roadway Machines

Include the cost of machines, other than machines classified as work equipment (Reference account 187), provided for the purpose of maintaining, improving and/or constructing way and structures.

Record by geographic cost centre (section 1502)

187 Work Equipment

Include:

  • the cost of equipment permanently mounted for movement on tracks (i.e. couplers attached) provided for the purpose of maintaining, improving and/or constructing way and structures;
  • the cost of vessel equipment used as work equipment.

189 Other Non-Revenue Rolling Stock

Include the cost of equipment permanently mounted for movement on tracks (i.e. couplers attached) provided for purposes other than revenue service or the maintaining, improving and/or construction of way and structures.

Other Equipment

This group consists of accounts which record the costs of rail marine equipment, buses and miscellaneous equipment.

Other Equipment
Account Number Account Description Interpretations

191

Marine Equipment

 

195

Miscellaneous Equipment

 

 

191 Marine Equipment

Include the cost of marine or floating equipment of all kinds used in revenue transportation operations.

195 Miscellaneous Equipment

Include the cost of trucks, automobiles and other vehicles not included elsewhere.

Pension Asset

 
Account Number Account Description Interpretations

197

Pension Asset − Gross Investment

 

 

197 Pension Asset-Gross Investment

Include cash payments made in respect of contributions (paid during the reference year in respect of the reference year or payable at the end of the reference year) to meet a statutory plan deficiency in Defined Benefit Pension Plans, which will be amortized over the employee average remaining service life (EARSL).
Once a cash payment is fully amortized, the amount originally booked in account 197 and the corresponding accumulated amortization are to be removed from accounts 197 and 297, respectively.

Reference: Annual Report schedule F52-1, Decision No. 97-R-2012

Section 1703 Accumulated Amortization Accounts

The accumulated amortization accounts are sub-accounts of Balance Sheet account 33 – Accumulated Amortization - Property and are divided into two activity categories: Way and Structures, and Equipment.

Ways and Structures

Track and Roadway

 
Account Number Account Description Interpretations

202

Grading − Accumulated Amortization

 

203

Rail − Accumulated Amortization

 

205

Ties − Accumulated Amortization

 

206

Paved Concrete Trackbed − Accumulated Amortization

 

207

Other Track Material − Accumulated Amortization

 

209

Ballast − Accumulated Amortization

 

211

Track Laying and Surfacing − Accumulated Amortization

 

215

Bridges − Accumulated Amortization

 

217

Culverts − Accumulated Amortization

 

219

Tunnels − Accumulated Amortization

 

221

Fences, Snow Sheds and Rock Sheds − Accumulated Amortization

 

223

Public Improvements − Accumulated Amortization

 

225

Other Right-of-Way Property − Accumulated Amortization

 

 

202 Grading - Accumulated Amortization

Record accumulated amortization of account 102 - Grading.

Record by geographic cost centre (section 1502)

203 Rail - Accumulated Amortization

Record accumulated amortization of account 103 - Rail.

Record by geographic cost centre (section 1502)

205 Ties - Accumulated Amortization

Record accumulated amortization of account 105 - Ties.

Record by type of tie as follows:

  • 205.1 Wood ties.
  • 205.2 Concrete ties.

Record by geographic cost centre (section 1502)

206 Paved Concrete Trackbed - Accumulated Amortization

Record accumulated amortization of account 106 - Paved Concrete Trackbed.

Record by geographic cost centre (section 1502)

207 Other Track Material - Accumulated Amortization

Record accumulated amortization of account 107 - Other Track Material, and account 113 - Used Track Material in Store.

Record by type of other track material as follows:

  • 207.1 Rail fastenings.
  • 207.2 Other.

Record by geographic cost centre (section 1502)

209 Ballast - Accumulated Amortization

Record accumulated amortization of account 109 - Ballast.

Record by geographic cost centre (section 1502)

211 Track Laying and Surfacing - Accumulated Amortization

Record accumulated amortization of account 111 - Track Laying and Surfacing.

Record by geographic cost centre (section 1502)

215 Bridges - Accumulated Amortization

Record accumulated amortization of account 115 - Bridges.

Record by geographic cost centre (section 1502)

217 Culverts - Accumulated Amortization

Record accumulated amortization of account 117 - Culverts.

Record by geographic cost centre (section 1502)

219 Tunnels - Accumulated Amortization

Record accumulated amortization of account 119 - Tunnels.

Record by geographic cost centre (section 1502)

221 Fences, Snow Sheds and Rock Sheds - Accumulated Amortization

Record accumulated amortization of account 121 - Fences, Snow Sheds and Rock Sheds.

Record by geographic cost centre (section 1502)

223 Public Improvements - Accumulated Amortization

Record accumulated amortization of account 123 - Public Improvements.

Record by geographic cost centre (section 1502)

225 Other Right-of-Way Property - Accumulated Amortization

Record accumulated amortization of account 125 - Other Right-of-Way Property.

Record by geographic cost centre (section 1502)

Buildings

Buildings
Account Number Account Description Interpretations

231

Office and Common Buildings − Accumulated Amortization

 

233

Office and Common Buildings Moveable Equipment and Machinery − Accumulated Amortization

 

235

Passenger Stations − Accumulated Amortization

 

237

Passenger Station Moveable Equipment − Accumulated Amortization

 

239

Roadway Buildings − Accumulated Amortization

 

241

Roadway Building Machines and Moveable Equipment − Accumulated Amortization

 

243

Equipment Repair Shops − Accumulated Amortization

 

245

Shop Machinery and Moveable Equipment − Accumulated Amortization

 

247

Leasehold Improvements − Accumulated Amortization

 

 

231 Office and Common Buildings - Accumulated Amortization

Record accumulated amortization of account 131 - Office and Common Buildings.

Record by geographic cost centre (section 1502)

233 Office and Common Buildings Moveable Equipment and Machinery-Accumulated Amortization

Record accumulated amortization of account 133 - Office and Common Buildings Moveable Equipment and Machinery.

Record by type of equipment as follows:

  • 233.1 General purpose computers.
  • 233.2 Power plant machinery (associated with multi-purpose power plants).
  • 233.3 Other moveable equipment.
  • 233.4 Power transmission systems (associated with multi-purpose power plants).
  • 233.5 System and application software.

Record by geographic cost centre (section 1502)

235 Passenger Stations - Accumulated Amortization

Record accumulated amortization of account 135 - Passenger Stations.

Record by geographic cost centre (section 1502)

237 Passenger Station Moveable Equipment - Accumulated Amortization

Record accumulated amortization of account 137 - Passenger Station Moveable Equipment.

Record by geographic cost centre (section 1502)

239 Roadway Buildings - Accumulated Amortization

Record accumulated amortization of account 139 - Roadway Buildings.

Record by geographic cost centre (section 1502)

241 Roadway Building Machines and Moveable Equipment - Accumulated Amortization

Record accumulated amortization of account 141 - Roadway Building Machines and Moveable Equipment.

Record by geographic cost centre (section 1502)

243 Equipment Repair Shops - Accumulated Amortization

Record accumulated amortization of account 143 - Equipment Repair Shops.

Record by geographic cost centre (section 1502)

245 Shop Machinery and Moveable Equipment - Accumulated Amortization

Record accumulated amortization of account 145 - Shop Machinery and Moveable Equipment.

Record by geographic cost centre (section 1502)

247 Leasehold Improvements - Accumulated Amortization

Record accumulated amortization of account 147 - Leasehold Improvements.

Record by geographic cost centre (section 1502)

Signals, Communications and Power

 
Account Number Account Description Interpretations

249

Signals − Accumulated Amortization

 

251

Rail Communication Systems − Accumulated Amortization

 

249 Signals - Accumulated Amortization

Record accumulated amortization of account 149 - Signals.

Record by type of devices as follows:

  • 249.1 Track signals.
  • 249.2 Hump yard devices.
  • 249.3 Crossing protection.
  • 249.4 Other.
  • 249.5 End train units (ETU) and related systems.

Record by geographic cost centre (section 1502)

251 Rail Communication Systems - Accumulated Amortization

Record accumulated amortization of account 151 - Rail Communication Systems.

Record by type of facility or device as follows:

  • 251.1 Buildings.
  • 251.3 Other communication devices.
  • 251.4 Pole lines.

Terminals and Fuel Stations

 
Account Number Account Description Interpretations

257

Intermodal Terminals − Accumulated Amortization

 

259

Rail Freight Terminals − Accumulated Amortization

 

261

Marine Terminals − Accumulated Amortization

 

263

Fuel Stations − Accumulated Amortization

 

 

257 Intermodal Terminals - Accumulated Amortization

Record accumulated amortization of account 157 - Intermodal Terminals.

Record by geographic cost centre (section 1502)

259 Rail Freight Terminals - Accumulated Amortization

Record accumulated amortization of account 159 - Rail Freight Terminals.

Record by geographic cost centre (section 1502)

261 Marine Terminals - Accumulated Amortization

Record accumulated amortization of account 161 - Marine Terminals.

Record by geographic cost centre (section 1502)

263 Fuel Stations - Accumulated Amortization

Record accumulated amortization of account 163 - Fuel Stations.

Record by geographic cost centre (section 1502)

Equipment

Rolling Stock – Revenue Service

 
Account Number Account Description Interpretations

271

Locomotives − Accumulated Amortization

 

273

Freight Cars − Accumulated Amortization

 

275

Passenger Cars − Accumulated Amortization

 

 

271 Locomotives - Accumulated Amortization

Record accumulated amortization of account 171 - Locomotives.

Record by type of locomotive as set out in schedule A. (Section 1901)

273 Freight Cars - Accumulated Amortization

Record accumulated amortization of account 173 - Freight Cars

Record by type of freight car as set out in schedule C. (Section 1903)

275 Passenger Cars - Accumulated Amortization

Record accumulated amortization of account 175 - Passenger Cars.

Record by type of passenger car as set out in schedule H. (Section 1908)

Intermodal Equipment

 
Account Number Account Description Interpretations

277

Intermodal Terminal Handling Equipment − Accumulated Amortization

 

279

Trailers, Semi-Trailers, Containers, Chassis and Bogies − Accumulated Amortization

 

281

Highway Tractors − Accumulated Amortization

 

 

277 Intermodal Terminal Handling Equipment - Accumulated Amortization

Record accumulated amortization of account 177 - Intermodal Terminal Handling Equipment.

279 Trailers, Semi-Trailers, Containers, Chassis and Bogies- Accumulated Amortization

Record accumulated amortization of account 179 - Trailers, Semi-Trailers, Containers, Chassis and Bogies.

281 Highway Tractors - Accumulated Amortization

Record accumulated amortization of account 181 - Highway Tractors.

Work Equipment and Roadway Machines

 
Account Number Account Description Interpretations

283

Roadway Machines − Accumulated Amortization

 

287

Work Equipment − Accumulated Amortization

 

289

Other Non-Revenue Rolling Stock − Accumulated Amortization

 

 

283 Roadway Machines - Accumulated Amortization

Record accumulated amortization of account 183 - Roadway Machines.

287 Work Equipment - Accumulated Amortization

Record accumulated amortization of account 187 - Work Equipment.

289 Other Non-Revenue Rolling Stock - Accumulated Amortization

Record accumulated amortization of account 189 - Other Non-Revenue Rolling Stock.

Other Equipment

 
Account Number Account Description Interpretations

291

Marine Equipment − Accumulated Amortization

 

295

Miscellaneous Equipment − Accumulated Amortization

 

 

291 Marine Equipment - Accumulated Amortization

Record accumulated amortization of account 191 - Marine Equipment.

295 Miscellaneous Equipment - Accumulated Amortization

Record accumulated amortization of account 195 - Miscellaneous Equipment.

Pension Asset

 
Account Number Account Description Interpretations

297

Pension Asset − Accumulated Amortization

 

 

297 Pension Asset- Accumulated Amortization

Record accumulated amortization of the deficit payments that have been amortized through account 821.
Once a cash payment is fully amortized, the amount originally booked in account 197 and the corresponding accumulated amortization are to be removed from accounts 197 and 297, respectively.

Reference: annual report schedule F52-2, Decision No. 97-R-2012

Other

 
Account Number Account Description Interpretations

299

Other Accumulated Amortization

 

 

299 Other Accumulated Amortization

Record accumulated amortization of the write-down of the net book value of assets in Eastern Canada which occurred in the year 1995. The use of this account in future years must be authorized by the Agency.

Section 1704 Revenue Accounts

The revenue accounts are grouped within four separate categories according to the major source of the revenue.

Freight Revenue

This group consists of a single account which records revenues in respect of service rendered in transporting goods by rail.

 
Account Number Account Description Interpretations

301

Freight Revenue

 

 

301 Freight Revenue

Include revenue earned from the transportation by the carrier of goods and mail covered by a rail waybill and from transit, stop and re-consigning privileges.

Include the following charges against Freight Revenue:

  • The carrier’s portion of overcharges resulting from the use of erroneous rates, weights, classifications or computations;
  • The carrier’s portion of refunds on account of errors in routing and billing;
  • The carrier’s portion of uncollected revenue on freight lost or destroyed in transit or refunds of revenue on such shipments;
  • The carrier’s portion of uncollected tariff charges on damaged shipments for which charges neither shipper nor consignee is liable.

Passenger Revenue

This group consists of six accounts which record revenues from transporting persons by rail. These accounts do not include amounts billed by operating railway companies for services rendered to VIA Rail. 

Reference: Instruction 1401.02.

 
Account Number Account Description Interpretations

321

Inter-City Passenger Transportation Revenue

 

322

Deductions from Inter-City Passenger Transportation Revenue

 

325

Commuter Passenger Transportation Revenue

 

329

Sleeping and Lounge Car Revenue

 

331

On-Board Food and Beverage Revenue

 

335

Other Passenger Revenue

 

 

321 Inter-City Passenger Transportation Revenue

Include revenue from transportation of passengers in services identified or defined as inter-city on the basis of the regular passenger coach tariff or special fares.

322 Deductions From Inter-City Passenger Transportation Revenue

Include the following charges against Inter-City Passenger Transportation Revenue:

  • Redemption of unused and partially unused local tickets and redemption of the carrier's portion of unused and partially unused interline tickets;
  • Refund of extra fares, cash fare penalty collections, and overcharges in excess of tariff fares;
  • Uncollectible undercharges.

325 Commuter Passenger Transportation Revenue

Include revenue from transportation of passengers in services identified or defined as commuter services.

329 Sleeping and Lounge Car Revenue

For both regular passenger train service and special train service include:

  • Revenue from berth and seat accommodation in sleeping cars on the basis of berth or seat rates for the space occupied;
  • Revenue from seat accommodation in lounge, parlor, dome, chair and other special cars.

331 On-Board Food and Beverage Revenue

Include sales revenue from dining and buffet service on trains.

335 Other Passenger Revenue

Include on- and off-train revenue derived from the operation of passenger trains and not provided for elsewhere.

On-train revenue includes revenue from the transportation on passenger trains of such items as baggage, packages, baby carriages, bicycles and household pets.

Off-train revenue includes the carrier's portion of contract revenue derived from the operation, over its line, of passenger train cars owned by parties other than VIA Rail, together with revenue derived from concession rentals, parking fees, vending machines and miscellaneous sources.

Miscellaneous Rail Revenue

This group consists of accounts which record revenue in respect of services incidental to transporting goods and persons by rail, for the use of facilities of which the expenses for operation and maintenance are not separable from railway expenses, and from sources not provided for elsewhere. This group also includes an account designed to record VIA Contract Payments.

 
Account Number Account Description Interpretations

351

Switching Revenue

 

353

Demurrage Revenue

 

355

Rent of Rail Buildings and Other Rail Property

 

357

Rent from Lease of Way and Structures

 

359

Other Rent Income

 

361

Joint Facility Revenue - Cr.

 

363

Joint Facility Revenue - Dr.

 

365

Revenue from Services for VIA

 

367

Other Miscellaneous Rail Revenue

 

 

351 Switching Revenue

Include revenue from switching service upon the basis of tariff rates.

353     Demurrage Revenue

Include revenue from the detention of cars incident to loading, unloading, re-consigning, and stops in transit upon the basis of tariffs for demurrage. Include demurrage revenue from trailers and containers when such revenue arises from operations considered rail.

Reference: Instruction 1202.

355 Rent of Rail Buildings and Other Rail Property

Include revenue from the exclusive use by others of buildings and other property or portions thereof when the property is operated and maintained in connection with property used in railway operations and the expenses of maintaining and operating the rented portion cannot be separated from the expenses of the portion used by the railway company.

357 Rent from Lease of Way and Structures

Include revenue from the exclusive use by others of roads, tracks, or bridges (including equipment or other railway company property covered by the contract) when such property is operated and/or maintained by the railway company, and the corresponding expenses can be identified separately from those of similar property used by the railway company.

Charge to this account:

  • The expenses of operation and maintenance;
  • Deficits or portions thereof, payable by the railway company under the terms of the lease contract.

359 Other Rent Income

Include revenue from the exclusive use by others of all rail property other than Rent from Lease of Way and Structures Property when such property is operated and/or maintained by the railway company, and the corresponding expenses can be identified separately from those of similar property used by the railway company.

Charge to this account the expenses of operation and/or maintenance of the above property.

361 Joint Facility Revenue - Cr.

Include the railway company's portion of miscellaneous rail revenue collected by others in connection with the operation of joint terminals and other facilities, such as revenue from restaurants, sale of power, and miscellaneous rail-related operations.

Reference: Instruction 1204.

363 Joint Facility Revenue - Dr.

Include the portion of miscellaneous rail revenue paid to others in connection with the operation of joint terminals and other facilities, such as revenue from restaurants, sale of power, and other miscellaneous rail-related operations.

Reference: Instruction 1204.

365 Revenue from Services for VIA

Include revenues derived from operations and maintenance associated with passenger services carried out for VIA Rail Canada, Inc.

367 Other Miscellaneous Rail Revenue

Include revenue from railway operations not provided for elsewhere. Such revenues include amounts received or receivable for the privilege of cutting hay along the right-of-way, from temporary use of the railway company's tracks for detouring trains, from weighing cars, from loading and unloading livestock in transit by rail; reimbursement for any net deficit between revenues and expenses for the operation of a local rail facility, the management of which has been entrusted to the railway company by agreement or contract; and revenue from the storage of freight

Government Payments

This group consists of accounts which record revenue payments by federal, provincial or other governmental authorities.

 
Account Number Account Description Interpretations

379

Inter-City Passenger Service Payments

 

381

Commuter Service Payments

 

 

379 Inter-City Passenger Service Payments

Include revenue in respect of payments received or receivable according to the provisions of such acts or arrangements that federal, provincial or other governmental authorities may prescribe.
Include payments received under Subsidiary Service Request Contracts as per Order-in-Council PC 1978-952.

381 Commuter Service Payments

Include revenue in respect of payments received or receivable according to the provisions of such acts or arrangements that federal, provincial or other governmental authorities may prescribe.

Section 1705 Expense Accounts

The expense accounts are grouped into the following four activity categories:  Way and Structures, Equipment, Railway Operation and General.

Way and Structures

The Way and Structures accounts record costs of maintenance and rent for track, roadway, buildings and other structures.Charges for amortization in respect of these property accounts are captured in section 1707- Way and Structures

These accounts are arranged in groups according to the type of expense involved or to the type of structure maintained.

Reference:  Instructions 1505, 1506, 1508, 1509.

Administration

This group consists of a single account.

 
Account Number Account Description Interpretations

400

Administration

 

 

400 Administration

Include all administrative expenses related to the maintenance of way and structures, except those related to the maintenance of communication systems.  In general, line supervision above the level of foreman is considered part of administration.  Include a reasonable share of administrative expense related to rail operations and maintenance as a whole.

Record by geographic cost centre (section 1502)

Reference: accounts 500, 600

Track and Roadway

The accounts in this group are designed to record the costs of maintaining the track and roadway and some related structures.

Reference:  Instructions 1507, 1508

 
Account Number Account Description Interpretations

401

Track and Roadway Maintenance

 

403

Rails - Maintenance

 

405

Ties - Maintenance

 

406

Paved Concrete Trackbed - Maintenance

 

407

Other Track Material - Maintenance

 

409

Ballast - Maintenance

 

411

Bridges - Maintenance

 

413

Culverts - Maintenance

 

415

Tunnels, Snow Sheds and Rock Sheds - Maintenance

 

417

Fences and Signs - Maintenance

 

419

Tools and Supplies

 

421

Removing Snow, Ice and Sand

 

423

Crossing Maintenance

 

 

401 Track and Roadway Maintenance

This account is designed to record the labour costs of track and roadway maintenance.  In addition, it includes track and roadway maintenance expenses which cannot be attributed directly to other accounts in this group.
Include:

  • the entire cost of section force labour except that chargeable to other accounts, e.g. snow removal, maintenance of fences, capital appropriations, or other railway departments;
  • the cost of any other labour involved in the care of roadbed and the maintenance of track structure;
  • any other track and roadway maintenance costs (e.g. the cost of work train service or work contracted to outside parties) which cannot be assigned to other accounts in the Track and Roadway group.

Record by geographic cost centre (section 1502)

Reference:  Instruction 1507

403 Rails - Maintenance
Include the cost of rails used in the repair of tracks and the cost of repairs to rail in track by welding.  Credit the salvage value of rails replaced in repair work to this account, except where directed otherwise by section 1309.13.

Record by geographic cost centre (section 1502)

405 Ties - Maintenance

Include the cost of ties used in the repair of tracks.

Record by geographic cost centre (section 1502)

406 Paved Concrete Trackbed - Maintenance

Include the cost of labour and material used in the repair and maintenance of paved concrete trackbed (except other track material which is to be included in account 407).

Record by geographic cost centre (section 1502)

407 Other Track Material - Maintenance

Include the cost of all track material, other than rails, ties and ballast, and material included in account 406, used in the repair of tracks.  Include the cost of track material used in connection with interlockers.  Credit the salvage value of other track material replaced in repair work to this account, except where directed otherwise by section 1309.13.

Record by geographic cost centre (section 1502)

409 Ballast - Maintenance

Include the cost of gravel, stone, slag, cinders, sand and similar ballast material used in the repair of tracks.
Earth placed to form a crown in the middle of the track is not considered ballast, nor is ballast material placed on the decking of bridges for fire protection.

Record by geographic cost centre (section 1502)

Reference:  Instruction 1507.

411 Bridges - Maintenance

Include the costs of maintaining and repairing bridges which support the tracks, and the cost of dredging, cleaning or other maintenance of drainage systems used to protect railway bridges.

Record by geographic cost centre (section 1502)

413 Culverts - Maintenance

Include the cost of clearing and repairing culverts which pass beneath the tracks.

Record by geographic cost centre (section 1502)

415 Tunnels, Snow Sheds and Rock Sheds - Maintenance

Include the costs of repairing tunnels and related drainage systems and the cost of lighting and ventilating tunnels.   Include the cost of repairing snow and rock sheds.

Record by geographic cost centre (section 1502)

417 Fences and Signs - Maintenance

Include:

  • the cost of repairing fences, farm gates, cattle guards, aprons, and hedges;
  • the initial cost and repair of signs other than those indicating bridges, signals, stations and other structures;
  • the cost of replacing trees for protecting tracks from snow;
  • the cost of putting up, inspecting and taking down portable snow and sand fences;
  • the cost of storing fences;

Record by geographic cost centre (section 1502)

419 Tools and Supplies

Include the initial costs and repair of tools, supplies and small machines used in the maintenance of way and structures.

Small machines includes all machines used in the maintenance of way and structures except those for which maintenance costs are included in accounts 461, 539 and 541.

Record by geographic cost centre (section 1502)

Reference:  Instruction 1506

421 Removing Snow, Ice and Sand

Include the costs of keeping roadway, track, station platforms and driveways, and highway and farm crossings clear of snow, ice and sand, except when this is done in the course of incidental cleaning by regular building employees.

Record by geographic cost centre (section 1502)

423 Crossing Maintenance

Include the cost of maintenance of public streets and highways and of private roads or other crossings owned or used exclusively by others.  In both of these cases, include the cost of maintaining bridges over or subways under the tracks.

Record by geographic cost centre (section 1502)

Buildings

The accounts in this group are designed to record the cost of maintaining railway companies’ buildings.

Reference:  Instructions 1509 and 1512

 
Account Number Account Description Interpretations

431

Office and Common Buildings − Maintenance

 

433

Passenger Stations − Maintenance

 

435

Roadway Buildings − Maintenance

 

437

Equipment Repair Shops − Maintenance

 

 

431 Office and Common Buildings - Maintenance

Include:

  • the cost of maintaining office buildings used principally for general administration;
  • the cost of maintaining yard buildings, freight customer service centres, stations used principally to house train order operations and any buildings used principally in support of rail operations and not provided for elsewhere;
  • the cost of maintaining office buildings used in support of more than one rail activity;
  • the cost of maintaining buildings functioning as both stations and office buildings where such costs cannot reasonably be assigned to one of the two functions.

Record by geographic cost centre (section 1502)

433 Passenger Stations - Maintenance

Include the cost of maintaining passenger stations.

Record by geographic cost centre (section 1502)

435 Roadway Buildings - Maintenance

Include the cost of maintaining roadway shops, rail welding plants and other buildings used principally in support of maintenance or construction of way and structures.

Record by geographic cost centre (section 1502)

437 Equipment Repair Shops - Maintenance

Include the cost of maintaining equipment repair shops, engine houses, shop offices and stores, and any other buildings used principally in support of equipment repair and servicing.

Record by geographic cost centre (section 1502)

Signals, Communications and Power

The accounts in this group are designed to record the costs of maintaining signals (including hump yard devices and crossing protection devices), railway communication systems, and power transmission systems for electric rail operations.

Signal maintenance includes maintenance of batteries or other sources of power.  It also includes the maintenance of cables, wires, machinery, and towers and other buildings when any of these are used principally for the operation of signals.

 
Account Number Account Description Interpretations

441

Track Signals - Maintenance

 

442

Hump Yard Devices - Maintenance

 

443

Crossing Protection - Maintenance

 

444

Other Signal Devices - Maintenance

 

445

Rail Communication Systems - Maintenance

 

446

End Train Units (ETU) and Related Systems - Maintenance

 

 

441 Track Signals - Maintenance

Include:

  • the cost of repairing signals and interlockers governing the movements of trains and locomotives;
  • the cost of repairing signal or interlocking apparatus located in a station;
  • the cost of repairing CTC equipment;
  • an equitable share of the pay and expenses of employees engaged in both maintaining and operating signals.

Do not include:

  • the cost of track material used in connection with interlockers, or of repairs to such material;
  • any costs relating to derails when these have been arranged so as to be thrown from switch stands.

Record by geographic cost centre (section 1502)

442 Hump Yard Devices - Maintenance

Include the cost of repairing specialized hump yard devices, such as retarders, compressors and electronic equipment.

Do not include the cost of repairing track signals in hump yards.

Record by geographic cost centre (section 1502)

443 Crossing Protection - Maintenance

Include the cost of repairing signals for the protection of traffic at crossings.

Record by geographic cost centre (section 1502)

444 Other Signal Devices - Maintenance

Include the cost of repairing hot box detectors, automatic car identification scanners, slide detectors and any other signal devices for which repair costs are not included in accounts 441, 442 and 443.

Record by geographic cost centre (section 1502)

445 Rail Communication Systems - Maintenance

Include the cost of repairing telegraph, telephone, radio, radar, inductive train communication and other communication systems, including related buildings and terminal equipment.  Include related administrative costs.

Do not include:

  • the cost of repairing communications equipment permanently attached to locomotives or other equipment;
  • the cost of repairing equipment used for communication within a single facility such as a yard, station, freight terminal, office or shop.

446 End Train Units (ETU) and Related Systems - Maintenance

Include the cost of repairing ETUs and related systems.

Record by geographic cost centre (section 1502)

Terminals and Fuel Stations

The accounts in this group are designed to record the costs of maintaining terminals and fuel stations.

 
Account Number Account Description Interpretations

451

Intermodal Terminals − Maintenance

 

453

Marine Terminals − Maintenance

 

455

Rail Freight Terminals − Maintenance

 

457

Fuel Stations − Maintenance

 

 

451 Intermodal Terminals - Maintenance

Include the cost of repairing ramps, paving, buildings and other fixed facilities at intermodal terminals.

Record by geographic cost centre (section 1502)

453 Marine Terminals - Maintenance

Include the cost of repairing wharves and docks.  The following activities are regarded as part of wharf and dock repairs:

  • dredging and other work undertaken to preserve the depth of water;
  • repairing guards, pilings and other protection against drift or ice;
  • repairing related buildings and other related structures;
  • cutting ice to prevent damage to docks and wharves.

Record by geographic cost centre (section 1502)

455 Rail Freight Terminal - Maintenance

Include the cost of repairing automobile loading and distribution terminals, bulk terminals, freight sheds for pool car traffic and any other terminal facilities for handling freight traffic, other than facilities for which repair costs are included in accounts 451 and 453.

Record by geographic cost centre (section 1502)

457 Fuel Stations - Maintenance

Include the cost of repairing facilities for supplying fuel to locomotives, rail diesel cars and steam generators.

Record by geographic cost centre (section 1502)

Miscellaneous Way and Structures Expenses

The accounts in this group are designed to record various miscellaneous expenses related to maintenance and rental of way and structures.

 
Account Number Account Description Interpretations

461

Vehicles

 

463

Injuries to Railway Employees: Maintenance of Way and Structures 

 

465

Power Plants

 

466

Power Plants − Absorbed

 

469

Maintaining Joint Facilities − Dr.

 

470

Maintaining Joint Facilities − Cr.

 

473

Rent for Leased Roads

 

475

Other Way and Structure Rents

 

479

Other Way and Structure Expense

 

481

Donations and Grants

 

 

461 Vehicles

Include the cost of operating, maintaining and renting highway vehicles and snowmobiles used in way and structures maintenance.

Record by geographic cost centre (section 1502)

463 Injuries to Railway Employees: Maintenance of Way and Structures

Include expenses on account of injuries which occur directly in connection with maintenance of way and structures, including the cost of services of employees and others called in consultation in connection with claim adjustments, the pay and expenses of employees while engaged as witnesses at inquests and lawsuits, and amounts assessed under federal or provincial acts providing for compensation to workmen for injuries.

Report as a note to Annual Report Schedule F46 all cash payments made to reduce the outstanding liability or to settle costs incurred in a given fiscal year.

465 Power Plants

Include the cost of maintaining and operating multi-use power plants, including the costs of maintaining machinery in such plants.

Do not include the costs of power plants dedicated to a single facility such as a shop or shop complex, a station, or a continuous welded rail plant.  A power plan is considered dedicated if ninety per cent or more of its output is used by the facility in question.  Do not include the costs of power plants for which fifty per cent or more of the output is used for non-rail purposes.

The total amount in this account is to be distributed to other accounts according to the instruction given in the text of account 466.

466 Power Plants - Absorbed

This account is designed to record the amounts distributed from account 465 to other expense or revenue accounts.

Record in the following sub-accounts:

 
466.1  Other Expenses
 
Include amounts distributed from account 465 to other expenses.
 
For each power plant whose costs are included in account 465 distribute the costs to other accounts according to the amount of power used by each user of the facility.
 
466.2  Outside Recoveries
 
Include amounts distributed from account 465 for outside recoveries.
 
Recoveries from outside companies and individuals are to be credited to this account and charged to account 67 – Other Miscellaneous Rail Revenue.

469 Maintaining Joint Facilities – Dr.

Include the railway company’s share of costs incurred by others in maintaining joint way and structures.

Reference: Instruction 1204

470 Maintaining Joint Facilities – Cr.

Include amounts chargeable to others as their share of the cost incurred by the railway company in maintaining joint way and structures.

Reference: Instruction 1204

473 Rent for Leased Roads

Include amounts paid or payable as rent for roads, tracks or bridges, which are owned by other companies and held under lease or other agreement by the terms of which exclusive use and control for operation purposes are secured.  Include equipment or other railway property covered by the lease. The entire amount of rent payable by the lessee in accordance with the agreement shall be included in this account, whether paid to the lessor in cash or disbursed by the lessee, on behalf of the lessor, as interest on funded debt, guaranteed dividends on stock, or otherwise.

475 Other Way and Structures Rents

Include any rents paid or payable in respect of way and structures and not provided for in accounts 473 and 859.

479 Other Way and Structures Expense

Include the cost of stationery, printing and office equipment used in connection with the maintenance of way and structures, including those used in connection with related administration.  Include the pay and expenses of employees attending conferences with officers in connection with wage disputes, fees paid to arbitrators in wage disputes, payments to employees for time absent on account of sickness and all other way and structures maintenance expenses not provided for elsewhere.

Record by geographic cost centre.

481 Donations and Grants

Include the amount of donations and grants received from other parties to defray the costs of maintenance of way and structures.

Reference: Instruction 1205

Equipment

The accounts in this activity group are designed to record the cost of maintaining and servicing railway rolling stock, the cost of maintaining various other types of equipment used by the railway company, amounts paid and received as rent for equipment. Charges for amortization in respect of these accounts are captured in the section 1707-Equipment.

Administration

This group consists of a single account.

 
Account Number Account Description Interpretations

500

Administration

 

 

500 Administration

Include all administrative expenses related to the maintenance of equipment.  General foremen (except at small shops with no departmental foremen) and other line supervisors above the departmental foreman are considered part of administration.  Include a reasonable share of administrative expense related to rail operations and maintenance as a whole.

Reference:  accounts 400, 600

Locomotives

The accounts in this group are designed to record the costs of maintaining and servicing locomotives.

 
Account Number Account Description Interpretations

501

Locomotive Maintenance

 

 

 

 

503

Locomotive Servicing

 

 

501 Locomotive Maintenance

Include the cost of repairing locomotives.

Record according to schedule A (section 1901).

Reference:  Instruction 1502.04

503 Locomotive Servicing

Include the cost of servicing locomotives.  The following activities are regarded as servicing: lubrication; cleaning; provision of supplies (other than fuel); repair and renewal of furniture, tools and other moveable articles; hostling in engine yards (including turntable operation); and any other activities necessary to care for locomotives or to prepare them for service.

Record according to schedule A (section 1901).

Reference:  Instruction 1502.04

Freight Cars

The accounts in this group are designed to record the costs of maintaining and lubricating freight cars.

 
Account Number Account Description Interpretations

511

Freight Car Maintenance – Railway Company Car Repairs Performed by Contractors

 

513

Freight Car Maintenance - Railway Company Car Repairs Performed by Railway Company

 

515

Freight Car Maintenance – Railway Company Car Repairs Performed by Foreign Railway Companies

 

517

Lubrication, Inspection and Coupling Hose – Freight Cars

 

518

Freight Car Maintenance – Recoveries from Foreign Car Repairs

 

519

Freight Car Maintenance – Foreign Car Repairs

 

 

511 Freight Car Maintenance – Railway Company Car Repairs Performed by Contractors

Include the cost of repairing a railway company’s own freight cars when repaired by non-railway contractors, in a non-company owned facility.

Do not include the cost of repairs performed by other railway companies (AAR Repairs).

Record according to schedule C (section 1903)

513 Freight Car Maintenance - Railway Company Car Repairs Performed by Railway  Company

Include the cost of a railway company repairing its’ own freight cars in its’ own facilities.

Record according to schedule C (section 1903)

515 Freight Car Maintenance – Railway Company Car Repairs Performed by Foreign Railway Companies

Include the cost of repairing a railway company’s own freight cars when repaired by other railway companies.
Also include the cost of repairing foreign freight cars damaged on the railway company’s network, and repaired by a foreign railway company.

517 Lubrication, Inspection and Coupling Hose – Freight Cars

Include:

  • the cost of inspection of incoming and outgoing trains to determine if any freight cars should be set off as bad orders;
  • the cost of lubricating freight cars
  • the costof inspection to determine whether lubrication is necessary;
  • the cost of coupling and uncoupling hose on freight trains; and
  • the cost of air brake testing.

Do not include the cost of repairs to freight cars resulting from the inspection.

518 Freight Car Maintenance – Recoveries from Foreign Car Repairs

Include the recoveries received from foreign railway companies for the repair of foreign freight cars in a railway company’s own facilities.

519 Freight Car Maintenance – Foreign Car Repairs

Include the cost of repairing foreign freight cars in a railway company’s own facilities.

Passenger Cars

The accounts in this group are designed to record the cost of maintaining, lubricating and inspecting passenger cars.

 
Account Number Account Description Interpretations

521

Passenger Car Main Shop − Maintenance

 

523

Passenger Car Line Point − Maintenance

 

525

Passenger Car Servicing

 

 

521 Passenger Car Main Shop Maintenance

Include the cost of repairing passenger cars, including heavy cleaning, at main shops.

Record according to schedule H (section 1908)

Reference:  Instruction 1502.04.

523 Passenger Car Line Point Maintenance

Include the cost of repairing and lubricating passenger cars, including heavy cleaning, at line points.
Record in the following sub-accounts:

 
523.1 Major Components
 
Include the cost of major components (wheel assemblies, batteries, waukesha enginators, genemotors (greater than 10kw), R.D.C. engines, turbo train turbines, gear boxes, and wheel assemblies) installed at line points. 
 
Record according to schedule H (section 1908)
 
523.2 Other
 
Include all line point repair expenses not included in sub-account 523.1.
 
Record according to schedule I (section 1909)

525 Passenger Car Servicing

Include:

  • the cost of inbound and outbound passenger train inspection at yards, including air brake testing and car inspection;
  • the cost of inspection and servicing at stations;
  • the cost of coupling and uncoupling hose on passenger trains.

Record according to schedule I (section 1909).

Reference: Instruction 1502.04

Intermodal Equipment

The accounts in this group are designed to record the costs of maintaining intermodal equipment.

 
Account Number Account Description Interpretations

531

Intermodal Terminal Equipment − Maintenance

 

533

Highway Tractors − Maintenance

 

535

Other Intermodal Equipment − Maintenance

 

 

531 Intermodal Equipment - Maintenance

Include the cost of repairing toplifters, mobile gantry cranes, yard switchers, tractors and other equipment for handling trailers and containers at intermodal terminals.

533 Highway Tractors - Maintenance

Include the cost of repairing highway tractors.

535 Other Equipment – Maintenance

Include the costs of repairing trailers, semi-trailers, containers, chassis, bogies and any other intermodal equipment not provided for in accounts 531 and 533.

Work Equipment and Roadway Machines

The accounts in this group are designed to record the costs of maintaining work equipment and roadway machines.

 
Account Number Account Description Interpretations

537

Work Equipment − Maintenance

 

539

Roadway machines − Maintenance

 

 

537 Work Equipment - Maintenance

Include the cost of repairing non-revenue rolling stock for which investment is recorded in account 187 – Work
Equipment and account 189 – Non-revenue Rolling Stock

539 Roadway Machines - Maintenance

Include the cost of repairing equipment for which investment is recorded in account 183 –Roadway Machines.
Record by geographic cost centre (section 1502)

Other Equipment

The account in this group is designed to record the costs of maintenance of marine equipment.

 
Account Number Account Description Interpretations

545

Marine Equipment − Maintenance

 

 

545 Marine Equipment - Maintenance

Include the cost of repairing rail floats, barges, tugs, ferries and other marine equipment used in revenue transportation service.

Equipment Rents

The accounts in this group are designed to record amounts related to the rental of equipment.

 
Account Number Account Description Interpretations

551

Freight Car Per Diem Rentals − Dr.

 

552

Freight Car Per Diem Rentals − Cr.

 

553

Freight Car Lease Rentals − Dr.

 

554

Freight Car Lease Rentals − Cr.

 

555

Passenger Car Rents − Dr.

 

556

Passenger Car Rents − Cr.

 

557

Locomotive Rents − Dr.

 

558

Locomotive Rents − Cr.

 

559

Intermodal Equipment Per Diem Rentals − Dr.

 

560

Intermodal Equipment Per Diem Rentals − Cr.

 

561

Intermodal Equipment Lease Rentals − Dr.

 

562

Intermodal Equipment Lease Rentals − Cr.

 

563

Work Equipment and Roadway Machine Rents − Dr.

 

564

Work Equipment and Roadway Machine Rents − Cr.

 

565

Other Equipment Rents − Dr.

 

566

Other Equipment Rents − Cr.

 

 

551 Freight Car Per Diem Rentals – Dr.

Include per diem payments for freight cars.

552 Freight Car Per Diem Rentals – Cr.

Include amounts received or receivable for per diem rentals of freight cars.

553 Freight Car Lease Rentals Dr.

Include amounts paid or payable for leased freight cars.

554 Freight Car Lease Rentals – Cr.

Include amounts received or receivable for freight cars leased to others.

555 Passenger Car Rents – Dr.

Include amounts paid or payable for leased passenger cars.

Record according to schedule H (section 1908)

556 Passenger Car Rents – Cr.

Include amounts received or receivable for passenger cars leased to others.

557 Locomotive Rents – Dr.

Include amounts paid or payable for leased locomotives.

558 Locomotive Rents – Cr.

Include amounts received or receivable for locomotives leased to others.

559 Intermodal Equipment Per Diem Rentals – Dr.

Include amounts paid or payable for per diem rentals of intermodal equipment.

560 Intermodal Equipment Per Diem Rentals – Cr.

Include amounts received or receivable for per diem rentals of intermodal equipment.

561 Intermodal Equipment Lease Rentals – Dr.

Include amounts paid or payable for leased intermodal equipment.

562 Intermodal Equipment Lease Rentals – Cr.

Include amounts received or receivable for intermodal equipment leased to others.

563 Work Equipment and Roadway Machine Rents – Dr.

Include amounts paid or payable for rental of work equipment and roadway machines.

564 Work Equipment and Roadway Machine Rents – Cr.

Include amounts received or receivable for rent of work equipment and roadway machines leased to others.

565 Other Equipment Rents – Dr.

Include amounts paid or payable for rent of vessels, buses and any other equipment not described in accounts 461 and 551 through 564.

566 Other Equipment Rents – Cr.

Include amounts received or receivable for rent of vessels, buses and any other equipment not described in accounts 461 and 551 through 564.

Miscellaneous Equipment Expense

The accounts in this group are designed to record the miscellaneous expenses related to equipment maintenance.

 
Account Number Account Description Interpretations

571

Injuries to Railway Employees:  Equipment Maintenance

 

573

Shop Machinery − Maintenance

 

575

Shop Overheads

 

576

Shop Overheads − Absorbed

 

577

Maintaining Joint Equipment − Dr.

 

578

Maintaining Joint Equipment − Cr.

 

579

Other Equipment Expense

 

580

Donations and Grants

 

 

571 Injuries to Railway Employees:  Equipment Maintenance

Include expenses on account of injuries which occur directly in connection with equipment maintenance, including the cost of services of employees and others called in consultation in connection with claim adjustments, the pay and expenses of employees while engaged as witnesses at inquests and lawsuits, and amounts assessed under federal or provincial acts providing for compensation to workmen for injuries.

Report as a note to Annual Report Schedule F46 all cash payments made to reduce the outstanding liability or to settle costs incurred in a given fiscal year.

573 Shop Machinery - Maintenance

Include the cost of repairing machinery used in equipment repairs.

575 Shop Overheads

Include all items of expense such as electricity and water consumption, cleaning, etc. at shops, engine-houses, repair tracks and other places at which mechanical work is done, when such items are not assignable to specific accounts.

Amounts in this account are to be distributed to other accounts that can be shown to be reasonably linked to these costs.

Expenses should be allocated by cost centre and natural expenses category to direct accounts, based on each account’s share of shop related labour costs.

This process should be applied annually, or at any greater frequency, so long as the application is consistent over time.

Reference:  Instruction 1506

576 Shop Overheads - Absorbed

This account is designed to record amounts distributed from account 575.  Record in the following sub-accounts:

 
576.1 Way and Structures Expense
Include amounts distributed to way and structures accounts.
 
576.2 Equipment Maintenance Expense
Include amounts distributed to equipment maintenance accounts.
 
576.3Railway Operation Expense
Include amounts distributed to railway operation accounts.
 
576.4 Stores Production
Include amounts allocated to stores production cost.
 
576.5 Capital Projects
Include amounts distributed to property accounts.
 
576.6 Chargeable to Others
Include amounts chargeable to others.
 
577 Maintaining Joint Equipment – Dr.
 
Include the railway company’s share of expenses incurred by others in maintaining equipment used in the operation of joint facilities, including the cost of maintaining shop and power plant machinery.

Reference:  Instruction 1204

578 Maintaining Joint Equipment – Cr.

Include amounts chargeable to others as their share of the cost incurred by the railway company in maintaining equipment used in the operation of joint facilities, including the cost of maintaining shop and power plant machinery.

Reference:  Instruction 1204

579 Other Equipment Expense

Include the cost of stationery, printing and office equipment used in connection with equipment maintenance and related administration.  Include the pay and expenses of employees attending conferences with officers in connection with wage disputes, fees paid to arbitrators in wage disputes, and payments to employees for time absent on account of sickness.

580 Donations and Grants

Include the amount of donations and grants to defray costs of maintenance of equipment.

Reference:  Instruction 1205

Railway Operation

The accounts in this activity group are designed to record the cost of railway operations and related operations considered rail under the criteria set forth in General Accounting Instruction 1203.

These accounts are arranged in groups according to the type of expense or the type of operation involved.

Reference:  Instruction 1511

Administration

This group consists of a single account.

 
Account Number Account Description Interpretations

600

Administration

 

 

600 Administration

Include all administrative expenses related to railway operations and to other operations whose costs are recorded in the Railway Operation group of accounts.  Include a reasonable share of administrative expenses related to rail operations and maintenance as a whole.

Reference:  Accounts 400, 500

Train-Related Expenses

The accounts in this group are designed to record the cost of operating revenue trains.

 
Account Number Account Description Interpretations

601

Engine Crews - Freight

 

603

Engine Crews - Inter-City Passenger

 

605

Engine Crews - Commuter

 

607

Train Crews - Freight

 

609

Train Crews - Inter-City Passenger

 

611

Train Crews - Commuter

 

613

Operating Sleeping Cars

 

615

Operating Meal Service Cars

 

617

Operating Catering Service Centres

 

619

Train Locomotive Diesel Fuel - Freight

 

623

Train Locomotive Diesel Fuel - Inter-City Passenger

 

627

Train Locomotive Diesel Fuel - Commuter

 

631

Train Other Expense - Freight

 

633

Train Other Expense - Passenger

 

635

Crew Accommodation

 

637

Crew Transportation

 

 

601 Engine Crews - Freight

Include the pay of freight enginemen and their assistants.

603 Engine Crews - Inter-City Passenger

Include the pay of enginemen and assistants in inter-city passenger service.

605 Engine Crews - Commuter

Include the pay of enginemen and assistants in commuter service.

607 Train Crews - Freight

Include the pay of freight conductors, brakemen, trainmen and flagmen.

609 Train Crews - Inter-City Passenger

Include the pay of all inter-city passenger train crew members not provided for in account 603 - Engine Crews - Inter-City Passenger.

611 Train Crews - Commuter

Include the pay of all commuter train crew members not provided for in account 605 - Engine Crews - Commuter

613 Operating Sleeping Cars

Include the cost of operating sleeping cars, including the pay of on-board employees, the cost of supplies, laundry costs and any other expenses directly related to sleeping car operation.

615 Operating Meal Service Cars

Include the cost of operating meal service cars, including the pay of on-board employees, laundry costs, the cost of supplies, and any other expenses directly related to the operation of meal service cars except expenses recorded in account 617 - Operating Catering Service Centres.

617 Operating Catering Service Centres

Include the cost of operating catering service centres and commissary depots which support rail passenger service.

619 Train Locomotive Diesel Fuel - Freight

Include the cost of diesel fuel and crude oil consumed by locomotives and steam generators, including all expenses incurred in purchasing and distributing fuel except the costs of transportation in the railway company's own trains.

Reference: Instruction 1502.05

623 Train Locomotive Diesel Fuel - Inter-City Passenger

Include the cost of diesel fuel and crude oil consumed by locomotives, rail diesel cars and steam generators in inter-city passenger train service, including all expenses incurred in purchasing and distributing fuel, except the costs of transportation in the railway company's own trains.

Reference: Instruction 1502.05

627 Train Locomotive Diesel Fuel - Commuter

Include the cost of diesel fuel and crude oil consumed by locomotives, rail diesel cars and steam generators in commuter train service, including all expenses incurred in purchasing and distributing fuel except the costs of transportation in the railway company's own trains.

Reference: Instruction 1502.05

631 Train Other Expenses - Freight

Include all costs of operating freight trains not provided for elsewhere.

633 Train Other Expenses - Passenger

Include all costs of operating passenger trains not provided for elsewhere.

635 Crew Accommodation

Include the cost of Crew Accommodation.

637 Crew Transportation

Include crew transportation expenses by taxi and rental car and all other crew transportation expenses which cannot be attributed to a specific account.

Yard Operations

The accounts in this group are designed to record the costs of operating yards where regular switching service is maintained, and the cost of transfer operations within terminals.

 
Account Number Account Description Interpretations

641

Controlling Yard Operations

 

643

Yard and Terminal Clerical

 

645

Yard Engine Crews

 

647

Yard Train Crews

 

649

Operating Yard Devices

 

651

Yard Locomotive Diesel Fuel

 

655

Yard Other Expense

 

657

Operating Joint Yards and Terminals - Dr.

 

658

Operating Joint Yards and Terminals - Cr.

 

661

Charges for Switching Service

 

 

641 ControllingYard Operations

Include the pay of yardmasters, assistant yardmasters and general yard foremen and other expenses related to the control of yard operations.

643 Yard andTerminal Clerical

Include the pay of yard clerks and attendants. Include a reasonable portion of the pay of employees who work partly as yard clerks and partly in other functions.

645 Yard Engine Crews

Include the pay of yard enginemen and their assistants.

647 Yard Train Crews

Include the pay of yard conductors, foremen (except general yard foremen), brakemen and switchmen.

649 Operating Yard Devices

Include the pay of employees operating yard switches, signals, interlockers, retarders and related hump yard devices. For this purpose, switches, signals and interlockers governing movements between yard and main tracks or yard and enginehouse tracks are considered yard.

Do not include the pay of train crews or yard train crews operating yard switches.

651 Yard Locomotive Diesel Fuel

Include the cost of diesel fuel and crude oil consumed by locomotives in yard service, including all expenses incurred in purchasing and distributing fuel except the costs of transportation in the railway company's own trains.

Reference: Instruction 1502.05

655 Yard OtherExpense

Include the cost of yard supplies (other than locomotive supplies) and any other yard expenses not provided for elsewhere.

657 Operating Joint Yards and Terminals - Dr.

Include the railway company's share of costs incurred by others in the operation of joint yards and terminals.

Reference: Instruction 1204

658 Operating Joint Yards and Terminals - Cr.

Include amounts chargeable to others as their share of the costs incurred by the railway company in the operation of joint yards and terminals.

Reference: Instruction 1204.

661 Charges for Switching Service

Include all amounts paid to others for switching service except amounts provided for in account 657.

Train Control

The accounts in this group are designed to record the cost of controlling train movements.

 
Account Number Account Description Interpretations

671

Dispatching

 

673

Line Operators and Signal Operation

 

 

671 Dispatching

Include the pay and expenses of dispatchers and related clerical employees.

Record by geographic cost centre.

673 Line Operators and Signal Operation

Include the pay of train operators at line stations, including a reasonable share of the pay of employees who both work as operators and perform station work. Include the cost of operating signals and interlockers, except where these are considered yard.

Reference: account 649

Station and Terminal Operations

The accounts in this group are designed to record the cost of operating freight customer service centres, freight terminals and passenger stations.

 
Account Number Account Description Interpretations

681

Freight Customer Service Centres

 

683

Intermodal Terminal Operation

 

685

Rail Freight Terminal  Operation

 

687

Passenger Station Operation

 

 

681 Freight Customer Service Centres

Include the pay and expenses of employees engaged in receiving and processing customer orders, requesting cars, providing data for waybills and any other activities carried at freight customer service centres not provided for in accounts 643 and 801. Include a reasonable portion of the pay of employees who work partly as yard clerks and partly in functions chargeable to this account. Include other expenses of operating freight customer service centres.

683 Intermodal Terminal Operation

Include the cost of operating intermodal terminals.

685 Rail FreightTerminals Operation

Include the cost of operating automobile loading and distribution terminals, bulk terminals, freight sheds for pool car traffic and any other freight terminals not provided for in account 683 - Intermodal Terminal Operations.
Do not include the cost of operating marine terminals.

687 Passenger Station Operation

Include the cost of operating passenger stations, including payments for loss and damage of baggage. Include a reasonable share of the pay of employees who work as train order operators and also perform passenger station work.

Other Rail Operations

The accounts in this group are designed to record the cost of various rail operations not provided for elsewhere.

 
Account Number Account Description Interpretations

701

Rail Communication System Operation

 

703

Weighing, Inspection and Demurrage Bureaus

 

705

Operating Joint Facilities - Dr.

 

706

Operating Joint Facilities - Cr.

 

709

Building Operating Expenses

 

711

Other Rail Operations

 

 

701 Rail Communication Systems Operation

Include the cost of operating telegraph, telephone, radio and other communication systems used in support of rail operations. Include related administrative costs.

703 Weighing, Inspection and Demurrage Bureaus

Include the cost of participation in joint weighing, inspection, demurrage and car distribution bureaus and associations.

705 OperatingJoint Facilities - Dr.

Include the railway company's share of expenses incurred by others in the operation of joint tracks, signals, interlockers and other facilities other than those provided for in account 657 - Operating Joint Yards and Terminals - Dr.

Reference: Instruction 1204

706 Operating Joint Facilities - Cr.

Include amounts chargeable to others as their share of the costs incurred by the railway company in the operation of joint tracks, signals, interlockers and other facilities other than those provided for in account 658 - Operating Joint Yards and Terminals - Cr.

Reference: Instruction 1204

709 Building Operating Expenses

Include the operational expenses of buildings when these cannot reasonably be charged to any other account.

Reference: Instruction 1512

711 Other Rail Operations

Include:

  • the pay of street and highway crossing gatekeepers and flagmen;
  • other operating expenses incurred in providing crossing protection;
  • the cost of drawbridge operation;
  • bridge arbitraries;
  • amounts paid for elevation of freight;
  • the cost of peripheral operations (such as at stockyards, cold storage plants and ice supply plants) considered to be rail activities according to the criteria set out in General Accounting Instruction 1203.
Other Transport Modes

The accounts in this group are designed to record the cost of truck, bus, taxi and marine operations which are performed in support of rail operations. 

Reference: Instruction 1203

 
Account Number Account Description Interpretations

721

Trucking Operations - Intermodal

 

723

Trucking Operations - Other

 

725

Bus and Taxi Operations

 

727

Marine Operations

 

 

721 Trucking Operations - Intermodal

Include the cost of trucking operations undertaken as part of rail intermodal service.

723 Trucking Operations - Other

Include the cost of rail-related trucking operations not provided for in account 721 - Trucking Operations - Intermodal.

725 Bus and Taxi Operations

Include the cost of completing rail passenger movements by bus or taxi when such operations are part of regularly scheduled rail passenger service.

727 Marine Operations

Include the cost of marine operations, including both vessel and terminal operations. Facilities for transferring coal, ore or other bulk products from trains to ships are considered marine terminals. Include ferry arbitraries, and arbitraries and allowances to others for lighterage and wharfage.

Equipment Cleaning and Specialized Servicing

The accounts in this group are designed to record the cost of cleaning freight and passenger cars and intermodal equipment, specialized servicing of freight cars, and general servicing of passenger cars.

 
Account Number Account Description Interpretations

731

Freight Car Cleaning

 

733

Freight Car Specialized Servicing

 

735

Passenger Car Cleaning

 

737

Passenger Car Supplies and General Servicing

 

739

Intermodal Equipment Cleaning

 

 

731 Freight Car Cleaning

Include the cost of cleaning freight cars, including removal of temporary load securing devices and removing snow and ice prior to loading.

Do not include the cost of cleaning in conjunction with repairs.

Reference: Instruction 1502.04

Record according to schedule C (section 1903)

733 Freight Car Specialized Servicing

Include the cost of specialized freight car servicing associated with particular commodities or car types.

Reference: Instruction 1502.04

Record according to schedule C (section 1903)

735 Passenger Car Cleaning

Include the cost of trip cleaning of passenger cars.

Reference: Instruction 1502.04

Record according to schedule I (section 1909).

737 Passenger Car Supplies and General Servicing

Include all costs of passenger train supplies and of icing, watering and air conditioning passenger cars other than costs provided for in accounts 613, 615 and 617. Include any other costs of servicing passenger cars not provided for elsewhere.

739 Intermodal Equipment Cleaning

Include the cost of cleaning intermodal equipment.

Causalities and Claims

The accounts in this group are designed to record the cost of injuries, loss and damage to freight, other damages and clearing wrecks when these costs are not covered by insurance.

 
Account Number Account Description Interpretations

741

Loss and Damage: Freight Train Accidents

 

743

Injuries to Railway Employees: Rail Operations (Yard and Train)

 

745

Clearing Wrecks

 

747

Third Party Injuries and Damage to Property (excluding Freight)

 

749

Loss and Damage - Other Accidents

 

 

741 Loss and Damage: Freight Train Accidents

Include payments and expenses on account of loss, destruction, damage, or delays of revenue freight shipments, and expenses on account of loss, destruction or damage to non-revenue shipments resulting from train accidents.

743 Injuries to Railway Employees: Rail Operations (Yard and Train)

Include expenses on account of injuries to persons which occur directly in connection with transportation service, including the cost of services of employees and others called in consultation in relation to claim adjustments, the pay and expenses of employees while engaged as witnesses at inquests and lawsuits, and amounts assessed under the provisions of federal or provincial acts providing for compensation to workmen for injuries.

Record separately; Use account 743.1 for train operation accidents and 743.2 for yard operation accidents.

Report as a note to Annual Report Schedule F46 all cash payments made to reduce the outstanding liability or to settle costs incurred in a given fiscal year.

745 Clearing Wrecks

Include the cost of clearing wrecks, including both labour and work train service costs. Include the cost of transferring freight and passengers to other trains or of providing alternative means of transportation.
Do not include the cost of repairing way and structures or equipment damaged in wrecks.

747 Third Party Injuries and Damage to Property (excluding Freight)

Include expenses on account of injuries to third parties, which occur directly in connection with transportation service, including the cost of services of employees and others called in consultation in relation to  claim adjustments, the pay and expenses of employees while engaged as witnesses at inquests or lawsuits, and amounts awarded to third parties for injury claims.

Include payments and expenses on account of damage to the property of others, excluding freight and baggage.

749 Loss and Damage – Other Accidents

Include payments and expenses on account of loss, destruction, damage, or delays of revenue freight shipments, and expenses on account of loss, destruction or damage to non-revenue shipments resulting from fires, handling, pilferage,  or other causes excluding train accidents.

Miscellaneous Operating Expenses

The accounts in this group are designed to record miscellaneous expenses and contra-expenses related to rail operations.

 
Account Number Account Description Interpretations

751

Miscellaneous Operating Expense

 

755

Donations and Grants

 

 

751 Miscellaneous Operating Expense

Include the cost of stationery, printing and office appliances used in connection with rail operations, rail-related operations of other transport modes, and related administration. Include all other expenses in connection with rail and rail-related operations not chargeable to other accounts in the Operations group.

755 Donations and Grants

Include the amount of donations and grants received from other parties to defray operating expenses.

Reference: section 1205

General Expenses

The accounts in this activity group are designed to record costs related to the railway company as a whole.

Administration

The accounts in this group are designed to record the cost of administrative activities not directly related to one or more of the other three railway activities (way and structures, equipment, and railway operation).

For all of these accounts except the marketing accounts (803, 805 and 807), there are sub-accounts showing directly incurred rail expense, rail’s portion of corporate expense, and rail expenses recovered from other corporate divisions.  These apply only when the railway is a division of a larger corporate entity.  The following general description applies to all of these sets of sub-accounts.

 
XXX.1 Rail Expenses
Include expenses incurred by the rail division.
 
XXX.2 Corporate Expenses
Include the rail share of expenses incurred by other corporate divisions.
 
XXX.3 Rail Expenses – Recoveries
Include the administrative expenses incurred by the rail division and recovered from other corporate divisions.

Reference:  Instruction 1513

 
Account Number Account Description Interpretations

800

General Administration

 

801

Management Services

 

803

Marketing and Sales - Carload Freight

 

805

Marketing and Sales - Intermodal

 

807

Marketing and Sales - Passenger

 

809

Accounting and Finance

 

811

Personnel and Public Relations

 

813

Environmental Remediation Expense

 

817

Other Administrative Expenses

 

 

800 General Administration

Include all administrative costs (both corporate and rail) incurred in the management of the railway company as a whole, including the salaries of the chairman, president and other general officers and all related expenses.

Record by geographic cost centre (section 1502), and in the following sub-accounts:

  • 800.1 Rail General Administration
  • 800.2 Rail-Related Corporate General Administration
  • 800.3 General Administration - Recoveries

Do not include the expenses for which specific provision is made in other accounts in the administration group

801 Management Services

Include the costs of corporate and rail functions of a staff nature which provide services to other management groups, including administrative and office services (including cafeterias, libraries, etc.), investigation and security, medical services, legal services, information systems and data processing, and research and development.

Record by geographic cost centre (section 1502), and in the following sub-accounts:

  • 801.1 Rail Management Services
  • 801.2 Rail-Related Corporate Management Services
  • 801.3 Management Services - Recoveries

803 Marketing and Sales - Carload Freight

Include marketing and sales costs related to carload freight operations including industrial development costs.

Record by geographic cost centre (section 1502)

805 Marketing and Sales - Intermodal

Include marketing and sales costs related to intermodal operations.

Record by geographic cost centre (section 1502)

807 Marketing and Sales - Passenger

Include marketing and sales costs related to passenger operations.

809 Accounting and Finance

Include the cost of rail accounting and finance services and of rail-related corporate accounting and finance services.

Record by geographic cost centre (section 1502), and in the following sub-accounts:

  • 809.1 Rail Accounting and Finance
  • 809.2 Rail-Related Corporate Accounting and Finance
  • 809.3 Accounting and Finance - Recoveries

811 Personnel and Public Relations

Include rail and rail-related corporate expense related to personnel and organizational development, including industrial relations, public relations and advertising.

Record by geographic cost centre (section 1502), and in the following sub-accounts:

  • 811.1 Rail Personnel and Public Relations
  • 811.2 Rail-Related Corporate Personnel and Public Relations
  • 811.3 Personnel and Public Relations - Recoveries

813 Environmental Remediation Expense

Include the environmental remediation expense incurred in a given year as well as any environmental clean-up expenses not captured in other UCA accounts.

Report as a note to Annual Report Schedule F46 all cash payments made to reduce the outstanding liability or to settle costs incurred in a given fiscal year.

817 Other Administrative Expenses

Include any administrative expenses not provided for elsewhere.

Record by geographic cost centre (section 1502), and in the following sub-accounts:

  • 817.1 Other Rail Administrative Expenses
  • 817.2 Other Rail-Related Corporate Administrative Expenses
  • 817.3 Other Administrative Expenses - Recoveries
Employee Benefits

The accounts in this group are designed to capture the cost of employee benefits, including Wage-related Benefits, Pension Benefits, and Employment Benefits.

Wage-related Benefits

 
Account Number Account Description Interpretations

819

Employee Incentive Compensation

 

820

Stock-Based Compensation and Profit Sharing

 

 

819 Employee Incentive Compensation

Include amounts earned by employees under bonus and incentive pay programs not captured elsewhere. 
These include performance payments to unionized and non-unionized employees, signing bonuses, and other forms of incentive compensation not considered direct wages and salary, and not captured in other accounts provided.

Do not include payments or costs for Stock Based Compensation of any kind.

Record separately. Use account 819.1 for non-union and 819.2 for union employees

820 Stock-Based Compensation and Profit Sharing

Regulatory Cost Reporting (Section 1201)

Include:

Actual cash payments made to employees to settle cash award plans under profit sharing and stock based compensation plans, including stock appreciation rights (SARs), in a given year. These amounts must be reported under the “Regulatory Cost” columns of Schedule F 46 of the Annual Report submitted to the Minister of Transportation.

Reference: Decision No. 176-R-2009

All other Regulatory Purposes

Include:

 
The GAAP expense for profit sharing plans and stock based compensation, including stock appreciation rights (SARs) earned by employees in a given year.
 
These amounts must be reported under the “Expenses” columns of schedule F 46 of the Annual Report submitted to the Minister of Transportation.

Special Instructions

 
The cash payments made to employees to settle cash awards under profit sharing and stock based-compensation plans, including stock appreciation rights (SARs) are viewed as labour costs for regulatory costing purposes.
 
The cash payments made to non-employee members of a railway company’s Board of Directors are not considered labour costs for regulatory costing purposes and should be reported as other costs.
 
Record separately; Use account 820.1 for non-union and 820.2 for union employees

Pension Benefits

 
Account Number Account Description Interpretations

821

Pension Costs

 

 

821 Pension Costs

Regulatory Cost Reporting (section 1201)

Include:

  • Cash payments in respect of contributions to pension plans and employee pension accounts (which were paid during the year or were payable at year end, both in respect of the current year) for Defined Contribution Plans, Supplemental Benefit Plans, Non-Registered Pension Plans, and Post-Retirement Benefit Plans;
  • Cash payments in respect of contributions (which were paid during the year or were payable at year end, both in respect of the current year) for the current service portion of Defined Benefit Plans;
  • Any pension related administrative costs borne exclusively by the railway company (not paid by the pension fund), and not captured in another UCA account;
  • Amortization portion of cash payments made in the current year to meet a statutory plan deficiency in Defined Benefit Plan. These cash payments are the additions to account 197 in the current year;
  • Amortization portion of previously unamortized statutory plan deficiency payments of a Defined Benefit plan that were captured in account 197.

These amounts must be reported under the “Regulatory Cost” columns of schedule F 46 of the Annual Report submitted to the Minister of Transportation.

Additional Instructions:

 
Paragraph 4 of Decision No. 97-R-2012 provides additional instruction regarding the components of account 821. These instructions can be found below.
 
UCA account 821 – Pensions shall be read so that:
 
Contributions made by railway companies shall be amounts actually paid during the reference year or payable at the end of the reference year, both in respect to the reference year, to employee pension accounts and pension trusts in respect of Defined Contribution, Defined Benefit, Supplemental Benefit, and Non-Registered Pension Benefit plans, and shall not include any provisional amounts that can be re-affected at the discretion of the railway company or over which the company has control or access;
 
The component for “current services” shall relate only to the pension earned by employees in the current year and exclude pension service earned by employees in past years, or yet to be earned in future years;
 
Payments made during the reference year or payable at the end of the reference year, both in respect of the reference year, by the railway companies directly to eligible pension beneficiaries under Post-Retirement Benefit plans are eligible pension costs and do not represent double counting of costs; and,
 
Direct pension administrative costs can include direct salaries and expenses of railway company staff who manage the relationship of the railway company with the pension fund to ensure that the railway company is informed of its pension obligations. No administrative costs of the pension fund shall be included in such direct costs.
 
Reference: Decision No. 97-R-2012, Annual Report schedule F52-3

All other Regulatory Purposes

 
Include:
 
Pension expenses as determined by GAAP in a given year. This amount must be reported under the “Expenses” columns of schedule F 46 of the Annual Report submitted to the Minister of Transportation.

Employment Benefits

 
Account Number Account Description Interpretations

823

Health and Welfare

 

825

Canada Pension Plan

 

827

Quebec Pension Plan

 

829

Employment Insurance

 

831

Other Employee Benefits

 

 

823 Health and Welfare

Include amounts contributed to employee health and welfare plans and related administrative costs.

825 Canada Pension Plan

Include contributions under the Canada Pension Plan.

827 Quebec Pension Plan

Include contributions under the Quebec Pension Plan.

829 Employment Insurance

Include contributions under the Employment Insurance Act.

831 Other Employee Benefits

Include the cost of job security plans and any other employee benefits not provided for elsewhere.

Separation Costs

 
Account Number Account Description Interpretations

835

Labour Restructuring Expense

 

 

835     Labour Restructuring Expense

Regulatory Cost Reporting (section 1201)

Include:

All payments made to employees of a railway company as a result of labour restructuring activities in respect of the given year.  These include payments for termination benefits, and other payments owed as a result of labour restructuring plans which have been communicated to employees.

Regulatory costs for labour restructuring are to be captured when the payment is made to fulfill the railway company’s obligation, not when the expenditure is recognized for GAAP purposes.

These amounts must be reported under the “Regulatory Cost” columns of schedule F 46 of the Annual Report submitted to the Minister of Transportation.

All other regulatory purposes:

Include the GAAP expense for labour restructuring. These amounts must be reported under the “Expense” columns of schedule F 46 of the Annual Report submitted to the Minister of Transportation.

Taxes

The accounts in this group are designed to record incurred tax costs excluding such portions of provincial sales taxes on materials and services purchased as have been allocated to other accounts in accordance with Expense Accounting Instruction 1516.

 
Account Number Account Description Interpretations

843

Provincial Sales Taxes

 

845

Municipal Property Taxes

 

849

Other Taxes

 

 

843 Provincial Sales Taxes

Include provincial sales taxes not allocated to other accounts.

Reference: Instruction 1516

845 Municipal Property Taxes

Include municipal taxes on rail property.

849 Other Taxes

Include all taxes not provided for elsewhere.

Other General Expenses

This group of accounts is designed to record various miscellaneous expenses of a general nature.

 
Account Number Account Description Interpretations

851

Insurance

 

853

Provision for Bad and Doubtful Debts

 

855

Material Store Expense

 

856

Material Store Expense - Absorbed

 

857

General Joint Facilities - Dr.

 

858

General Joint Facilities - Cr.

 

859

Joint Facility Rents - Dr.

 

860

Joint Facility Rents - Cr.

 

861

Injuries to Railway Employees: General (and unallocated)

 

865

Donations and Grants

 

867

Operating Carriers' Charges to VIA

 

 

851 Insurance

Include:

  • premiums for insurance against loss through injuries to persons or damages to or destruction or loss of property;
  • premiums on fidelity bonds of employees;
  • administrative costs related to the purchase of insurance;
  • costs of administering self-insurance programs.

Do not include amounts paid out under self-insurance plans.

853 Provisions for Bad and Doubtful Debts

Include the amount required to bring the Allowance for Doubtful Accounts (account 9) to a level sufficient to meet probable losses on collection of accounts receivable outstanding at the end of a financial period. Accounts written off as bad, and recoveries thereon, are to be charged or credited to account 9 - Allowance for Doubtful Accounts.

855 Material Store Expense

Include the cost of purchasing, handling, storing and distributing material, including the operating expenses of switching locomotives exclusively assigned to stores service.

Amounts in this account are to be allocated to other primary accounts or to recoverable expense according to instructions given in the text of account 856 - Material Store Expense - Absorbed.

856 Material Store Expense - Absorbed

Include amounts distributed from account 855 - Material Store Expense to other accounts or to recoverable expenses.

The total amount in account 855 attributable to capital projects or recoverable from other parties must be distributed. Any amounts directly related to a particular type of material are to be added to the cost of such material.

Expenses should be distributed to accounts 401 through 751, as appropriate, based on each account’s share of the current year’s material costs.

857 General Joint Facilities - Dr.

Include the railway company's share of general expenses incurred by others in maintaining and operating joint tracks, yards, terminals and other facilities.

Reference: Instruction 1204

858 General Joint Facilities - Cr.

Include amounts chargeable to others as their share of general expenses incurred by the railway company in maintaining and operating joint tracks, yards, terminals and other facilities.

Reference: Instruction 1204

859 Joint Facility Rents - Dr.

Include the railway company's share of interest and other financial charges incurred by others on investment in joint facilities.

Reference: Instruction 1204

860 Joint Facility Rents - Cr.

Include amounts chargeable to others as their share of interest and other financial charges incurred by the railway company on investment in joint facilities.

Reference: Instruction 1204

861 Injuries to Railway Employees: General (and unallocated)

Include expenses on account of injuries to persons which occur directly in connection with activities for which costs are recorded in the General group of accounts, including the cost of services of employees and others called in consultation in relation to claim adjustments, the pay and expenses of employees while engaged as witnesses at inquests and lawsuits, and amounts assessed under federal or provincial workmen's compensation acts. Include any amounts assessed under federal or provincial workmen's compensation acts which cannot be attributed to one of the other three railway activities (i.e. Way and Structures, Equipment, and Railway Operation).

Report as a note to Annual Report Schedule F46 all cash payments made to reduce the outstanding liability or to settle costs incurred in a given fiscal year.

865 Donations and Grants

Include the amount of donations and grants received from other parties to defray general expenses.

867 Operating Carriers' Charges to VIA

This account is for the use of VIA Rail Canada Inc. only.

Include amounts paid or payable to carriers involved in operating VIA trains and maintaining VIA equipment where such amounts cannot be identified in sufficient detail to attribute them to other expense accounts.

Section 1706 Other Income and Charges

 
Account Number Account Description Interpretations

871

Dividend Income

 

873

Interest Income

 

875

Gain or Loss from Disposal of Land and Other Non-Amortizable Property

 

877

Gain or Loss on Securities

 

879

Interest on Long-Term Debt

 

881

Interest on Other Debt

 

883

Gain or Loss on Foreign Exchange

 

885

Other Income

 

887

Other Charges

 

889

Income Taxes

 

891

Extraordinary Items

 

 

871 Dividend Income

Include dividend income from investments included in accounts 3 and 25. Also include income or loss from long-term investments in shares accounted for on the equity basis.

873 Interest Income

Include interest income from investments, deposits, advances, etc., included in accounts 1, 3 and 25.

875 Gain or Loss from Disposal of Land and Other Non-Amortizable Property

Include identified gains or losses resulting from all sales or retirements of land and other non-amortizable property.

877 Gain or Loss on Securities

Include gains or losses resulting from the sale of temporary or long-term investments. Include also provisions for losses on investments.

879 Interest on Long-term Debt

Include interest expense incurred on all debt originally incurred for a period longer than one year and the amortization of premiums and discounts on such debt.

881 Interest on Other Debt

Include interest expense incurred on all debt originally incurred for a period up to one year in length.

883 Gain or Loss on Foreign Exchange

Include gains and losses arising from asset or liability positions taken in foreign currencies.

885 Other Income

Include income for which a specific account is not provided.

887 Other Charges

Include charges and expenses for which specific accounts are not provided.

889 Income Taxes

Include provisions for federal, provincial or other government taxes based on the carrier's net income (or loss) from railway operations for the fiscal period.

891 Extraordinary Items

Include gains, losses and provisions for losses which by their nature are not typical of normal business activities, are not expected to occur regularly over a period of years and are not considered as recurring factors in any evaluation of ordinary operations.

Section 1707 Amortization Accounts

The amortization expense accounts are grouped into two activity categories: Way and Structures, and Equipment.

Way and Structures

Way and Structures accounts are designed to record amortization in respect of amortizable Way and Structures property accounts.

Track and Roadway

 
Account Number Account Description Interpretations

902

Grading - Amortization

 

903

Rail - Amortization

 

905

Ties - Amortization

 

906

Paved Concrete Trackbed - Amortization

 

907

Other Track Material - Amortization

 

909

Ballast - Amortization

 

911

Track Laying and Surfacing - Amortization

 

915

Bridges - Amortization

 

917

Culverts - Amortization

 

919

Tunnels - Amortization

 

921

Fences, Snow Sheds and Rock Sheds - Amortization

 

923

Public Improvements - Amortization

 

925

Other Right-of-Way Property - Amortization

 

 

902 Grading - Amortization

Include the amortization expense assessed for account 102 - Grading.

Record by geographic cost centre (section 1502)

903 Rail - Amortization

Include the amortization expense assessed for account 103 - Rail.

Record by geographic cost centre (section 1502)

905 Ties - Amortization

Include the amortization expense assessed for account 105 - Ties.

Record by geographic cost centre (section 1502)

906 Paved Concrete Trackbed - Amortization

Include the amortization expense assessed for account 106 - Paved Concrete Trackbed.

Record by geographic cost centre (section 1502)

907 Other Track Material - Amortization

Include the amortization expense assessed for account 107 - Other Track Material

Record by geographic cost centre (section 1502)

909 Ballast - Amortization

Include the amortization expense assessed for account 109 - Ballast.

Record by geographic cost centre (section 1502)

911 Track Laying and Surfacing - Amortization

Include the amortization expense assessed for account 111 - Track Laying and Surfacing.

Record by geographic cost centre (section 1502)

915 Bridges - Amortization

Include the amortization expense assessed for account 115 - Bridges.

Record by geographic cost centre (section 1502)

917 Culverts - Amortization

Include the amortization expense assessed for account 117 - Culverts.

Record by geographic cost centre (section 1502)

919 Tunnels - Amortization

Include the amortization expense assessed for account 119 - Tunnels.

Record by geographic cost centre (section 1502)

921 Fences, Snow Sheds and Rock Sheds - Amortization

Include the amortization expense assessed for account 121 - Fences, Snow Sheds and Rock Sheds.

Record by geographic cost centre (section 1502)

923 Public Improvements - Amortization

Include the amortization expense assessed for account 123 - Public Improvements.

Record by geographic cost centre (section 1502)

925 Other Right-of-Way Property - Amortization

Include the amortization expense assessed for account 125 - Other Right-of-Way Property.

Record by geographic cost centre (section 1502)

Buildings

 
Account Number Account Description Interpretations

931

Office and Common Buildings - Amortization

 

933

Office and Common Buildings Moveable Equipment and Machinery - Amortization

 

935

Passenger Stations - Amortization

 

937

Passenger Station Moveable Equipment - Amortization

 

939

Roadway Buildings - Amortization

 

941

Roadway Building Machines and Moveable Equipment - Amortization

 

943

Equipment Repair Shops - Amortization

 

945

Shop Machinery and Moveable Equipment - Amortization

 

947

Leasehold Improvements - Amortization

 

 

931 Office and Common Buildings - Amortization

Include the amortization expense assessed for account 131 - Office and Common Buildings.

Record by geographic cost centre (section 1502)

933 Office and Common Buildings Moveable Equipment and Machinery - Amortization

Include the amortization expense assessed for account 133 - Office and Common Buildings Moveable Equipment and Machinery.

Record by geographic cost centre (section 1502)

935 Passenger Stations - Amortization

Include the amortization expense assessed for account 135 - Passenger Stations.

Record by geographic cost centre (section 1502)

937 Passenger Station Moveable Equipment - Amortization

Include the amortization expense assessed for account 137 - Passenger Station Moveable Equipment.

Record by geographic cost centre (section 1502)

939 Roadway Buildings - Amortization Include the amortization expense assessed for account 139 - Roadway Buildings.

Record by geographic cost centre (section 1502)

941 Roadway Building Machines and Moveable Equipment - Amortization

Include the amortization expense assessed for account 141 - Roadway Building Machines and Moveable Equipment.

Record by geographic cost centre (section 1502)

943 Equipment Repair Shops - Amortization

Include the amortization expense assessed for account 143 - Equipment Repair Shops.

Record by geographic cost centre (section 1502)

945 Shop Machinery and Moveable Equipment - Amortization

Include the amortization expense assessed for account 145 - Shop Machinery and Moveable Equipment.

Record by geographic cost centre (section 1502)

947 Leasehold Improvements - Amortization

Include the amortization expense assessed for account 147 - Leasehold Improvements.

Record by geographic cost centre (section 1502)

Signals, Communication and Power

 
Account Number Account Description Interpretations

949

Signals - Amortization

 

951

Rail Communication Systems - Amortization

 

 

949 Signals - Amortization

Include the amortization expense assessed for account 149 - Signals.

Record by geographic cost centre (section 1502)

951 Rail Communication Systems - Amortization

Include the amortization expense assessed for account 151 - Rail Communication Systems.

Terminals and Fuel Stations

 
Account Number Account Description Interpretations

957

Intermodal Terminals - Amortization

 

959

Rail Freight Terminals - Amortization

 

961

Marine Terminals - Amortization

 

963

Fuel Stations - Amortization

 

 

957 Intermodal Terminals - Amortization

Include the amortization expense assessed for account 157 - Intermodal Terminals.

Record by geographic cost centre (section 1502)

959 Rail Freight Terminals - Amortization

Include the amortization expense assessed for account 159 - Rail Freight Terminals.

Record by geographic cost centre (section 1502)

961 Marine Terminals - Amortization

Include the amortization expense assessed for account 161 - Marine Terminals.

Record by geographic cost centre (section 1502)

963 Fuel Stations - Amortization

Include the amortization expense assessed for account 163 – Fuel.

Record by geographic cost centre (section 1502)

Special Amortization (Way and Structures)

 
Account Number Account Description Interpretations

967

Donations and Grants - Amortization

 

968

Investment Tax Credit - Amortization

 

969

Way and Structures - Amortization Adjustments

 

 

967 Donations and Grants - Amortization

Include amortization of deferred credits for donations and grants used to acquire way and structures property.

Reference: Instruction 1205

968 Investment Tax Credit - Amortization

Include amortization of deferred credits for investment tax credits relating to way and structures property accounts.

969 Way and Structures - Amortization Adjustments

Include adjustments related to the disposal of all assets in a class.

Reference: Instruction 1309.06

Equipment

Rolling Stock – Revenue Service

 
Account Number Account Description Interpretations

971

Locomotives - Amortization

 

973

Freight Cars - Amortization

 

975

Passenger Cars - Amortizations

 

 

971 Locomotives - Amortization

Include the amortization expense assessed for account 171 - Locomotives.

Record according to schedule A. (Section 1901)

973 Freight Cars - Amortization

Include the amortization expense assessed for account 173 - Freight Cars

Record according to schedule C. (Section 1903)

975 Passenger Cars - Amortization

Include the amortization expense assessed for account 175 - Passenger Cars.

Record according to schedule H. (Section 1908)

Intermodal Equipment

 
Account Number Account Description Interpretations

977

Intermodal Terminal Handling Equipment - Amortization

 

979

Trailers, Semi-Trailers, Containers, Chassis and Bogies - Amortization

 

981

Highway Tractors - Amortization

 

 

977 Intermodal Terminal Handling Equipment - Amortization

Include the amortization expense assessed for account 177 - Intermodal Terminal Handling Equipment.

979 Trailers, Semi-Trailers, Containers, Chassis and Bogies - Amortization

Include the amortization expense assessed for account 179 - Trailers, Semi-Trailers, Containers, Chassis and Bogies.

981 Highway Tractors - Amortization

Include the amortization expense assessed for account 181 - Highway Tractors.

Work Equipment and Roadway Machines

 
Account Number Account Description Interpretations

983

Roadway Machines - Amortization

 

987

Work Equipment - Amortization

 

989

Other Non-Revenue Rolling Stock - Amortization

 

 

983 Roadway Machines - Amortization

Include the amortization expense assessed for account 183 - Roadway Machines.

987 Work Equipment - Amortization

Include the amortization expense assessed for account 187 - Work Equipment.

989 Other Non-Revenue Rolling Stock - Amortization

Include the amortization expense assessed for account 189 - Other Non-Revenue Rolling Stock.

Other Equipment

 
Account Number Account Description Interpretations

991

Marine Equipment - Amortization

 

995

Miscellaneous Equipment - Amortization

 

 

991 Marine Equipment - Amortization

Include the amortization expense assessed for account 191 - Marine Equipment.

995 Miscellaneous Equipment - Amortization

Include the amortization expense assessed for account 195 - Miscellaneous Equipment.

Special Amortization (Equipment)

 
Account Number Account Description Interpretations

997

Donations and Grants - Amortization

 

998

Investment Tax Credit - Amortization

 

999

Equipment - Amortization Adjustments

 

 

997 Donations and Grants - Amortization

Include amortization of deferred credits for donations and grants used to acquire equipment.

Reference: Instruction 1205

998 Investment Tax Credit - Amortization

Include amortization of deferred credits for investment tax credits relating to equipment property accounts.

999 Equipment - Amortization Adjustments

Include adjustments related to the disposal of all assets in a class.

Reference: Instruction 1309.06

Section 1800 Chart of Operating Statistics

Section 1801 Motive Power Statistics

The statistics in this group are measures of operations by locomotives and other equipment providing motive power.

Reference: Instruction 1602.05

S-01 Locomotive Unit Miles

1801.01 A locomotive unit mile is the operation of a locomotive unit over one mile of track.

1801.02 Include all locomotive operations. For switching operations, record the time spent by each unit and convert to miles at six miles per hour.

1801.03 This statistic is reported in two different forms, designated by the suffixes A and B.

S-01A Locomotive Unit Miles by Carrier's Locomotives

1801.04 Record all miles operated by locomotive units owned by the carrier, whether as part of the carrier's operations or as part of another carrier's operations.

Record according to schedule A (section 1901)

1801.05 When used in the analysis of locomotive maintenance costs, this statistic may be adjusted to take account of the following considerations:

  • the terms of any lease of the carrier's locomotives to other parties;
  • the terms of any lease for locomotives leased by the carrier for its operations;
  • the terms of agreements between VIA and other carriers concerning maintenance of VIA locomotives.

All such adjustments shall be reported to the Secretary of the Agency.

S-01B Locomotive Unit Miles in Carrier's Operations

1801.06 Record all miles operated by locomotives as part of the carrier's operations, regardless of the ownership of the locomotives involved. VIA trains shall be considered part of the operating carrier's operations.
Record according to schedule A (section 1901)

S-03 Gallons of Fuel

1801.07 This statistic measures fuel issued for use in the carrier's rail operations.

Record by geographic cost centre (section 1502)

1801.08 If this statistic is used as an independent variable in the analysis of fuel station costs, record also by geographic cost centre.

S-05 Yard Diesel Unit Minutes

1801.09 A yard diesel unit minute is one minute spent by one diesel locomotive unit in yard service.

1801.10 Reporting of this statistic is mandatory only if it is used by the carrier in the analysis of yard fuel costs.

Section 1802 Car Statistics

The statistics in this group record various aspects of car use or ownership.

Reference: Instruction 1602.05

S-11 Freight Car Miles

1802.01 A freight car mile is the movement of a freight car over one mile of track.

1802.02 All movements are included, except in the case of transfer trains. Car miles in transfer trains are to be included only if they occur at locations or in services which are significant generators of such mileages. Records are to be kept of the specific locations and services involving freight car miles in transfer trains.

1802.03 For purposes of developing this statistic a transfer train is defined as one which operates entirely within terminal limits.

1802.04 This statistic is to be recorded in two different forms, designated by the suffixes A and B.

S-11A Freight Car Miles by Carrier's Cars

1802.05 Record all miles for cars owned by the carrier, whether in the carrier's trains or in those of another railway company.

Record according to schedule C (section 1903).

S-11B Freight Car Miles in Carrier's Operations

1802.06 Record all miles by freight cars in the carrier's trains, regardless of the ownership of the cars involved.

1802.07 Record according to schedule C (section 1903)..

S-13 Freight Car Days

1802.08 A freight car day is the use or ownership of a freight car for one day. Include all cars owned by carrier.

Record according to schedule C (section 1903)

S-15 Passenger Car Miles

1802.09 A passenger car mile is the movement of a passenger car over one mile of track.

Include all movements.

Recording according to schedule H and I (sections 1908 and 1909).

1802.10 Passenger car miles in VIA trains shall be recorded by both VIA and the operating carrier.

S-17 Passenger Car Days

1802.11 A passenger car day is the use or ownership of a passenger car for one day.

Include all cars owned by the carrier.

Recording according to schedule H and I (sections 1908 and 1909)

Section 1803 Train Operation Statistics

The statistics in this group record various aspects of train operation.

Reference: Instruction 1602.06

S-21 Gross Ton Miles

1803.01 A gross ton mile is the movement of one ton of rail equipment, intermodal equipment or freight over one mile of track.

1803.02 Include all movements over the carrier's tracks except where switching operations, including operations by other carriers.

Record by geographic cost centre (section 1502)

1803.03 The Agency may request supplementary reporting of gross ton miles as used in the analysis of fuel costs and crew wages. In this case, reporting is by train run or some other service-specific unit and all movements by the carrier's trains are included whether or not these occur on the carrier's tracks.

S-23 Train Miles

1803.04 A train mile is the movement of a train over one mile of track.

This statistic is reported in two forms, designated by the suffixes A and B.

S-23A Train Miles by Carrier's Trains

1803.05 Include all movements by the carrier's trains except transfer trains.

Record by type of service – freight, passenger, non-revenue.

S-23B Train Miles in Carrier's Tracks

1803.06 Include all train movements over the carrier's tracks except transfer trains.

Record by geographic cost centre (section 1502)

1803.07 Reporting of this statistic is mandatory only if it is used by the carrier in the analysis of train control costs.

S-25 Train Switching Miles

1803.08 Train switching miles are measured as time spent in switching (train switching minutes) and converted to miles at six miles per hour. A train switching minute is one minute's work in switching service by a train crew.

Include all switching operations on the carrier's tracks.

Record by geographic cost centre.

S-27 Train Hours

1803.09 Train hours are measured as the train time between departure and arrival stations minus time spent in train switching en route.

Record by geographic cost centre (section 1502)

1803.10 Reporting of this statistic is mandatory only if it is used by the carrier in the analysis of train control costs.

Section 1804 Yard Operations Statistics

There is only one statistic in this category. It is designed to measure yard switching activity.

S-31 Yard Switching Miles

1804.01 Yard switching miles are measured as time spent in yard switching (yard switching minutes) and converted to miles at six miles per hour. A yard switching minute is one minute's work in switching service by a yard crew. For the purpose of this statistic, "switching service" includes transfer train operations.

Record by geographic cost centre (section 1502)

Section 1805 Traffic Statistics

The statistics in this group measure the volume of freight carried.

S-41 Carloads

1805.01 A carload is a shipment that uses one rail car for its transportation.

This statistic is reported in four different forms designated by the suffixes A, B, C and D.

S-41A Carloads Originated and Terminated

1805.02 This statistic may be calculated in either of the following two ways:

  1. Include all revenue carloads originated and terminated; or,
  2. Include all revenue carloads originated and terminated, and all on-coming and off-coming carloads in interline service.

1805.03 In reporting this statistic, the carrier shall indicate the method used in its calculation.

Record by geographic cost centre (section 1502).

S-41B Grain Carloads in Box Cars

1805.04 This statistic records all shipments of bulk grain in box cars.

S-41C Carloads by Car Type

1805.05 Include both revenue and non-revenue shipments.

Record according to schedule C (section 1903).

1805.06 Reporting of this statistic is mandatory only if it is used by the carrier in the analysis of freight car cleaning costs.

S-41D Carloads by Commodity

1805.07 Include revenue carloads only.

Record according to the commodity type schedule used in the analysis of loss and damage expense.

1805.08 Reporting of this statistic is mandatory only if it is used by the carrier in the analysis of loss and damage costs.

S-43 Net Ton Miles

1805.09 A net ton mile is the movement of one ton of freight over one mile of track.

Record separately by revenue and non-revenue traffic.

1805.10 Record revenue net ton miles according to the commodity type schedule used in the analysis of marketing costs.

S-45 Tons of Revenue Traffic

1805.11 This statistic records the total weight of revenue shipments.

Record according to the commodity type schedule used in the analysis of loss and damage expense.

1805.12 Reporting of this statistic is mandatory only if it is used by the carrier in the analysis of loss and damage costs.

Section 1806 Road and Track Statistics

The statistic in this category measures the size and certain qualitative characteristics of the carrier's road and track.

S-51 Equated Road Miles

1806.01 A "road mile" is one mile of single or first main track. "Equated road miles" are road miles weighted by an index which measures the degree of gradient and/or curvature of the track. Various methods of calculating this statistic are acceptable. Reporting of this statistic should be accompanied by a description of the method used to develop it. The method must be approved by the Agency.

Record by geographic cost centre (section 1502)

Section 1900 Appendix

Section 1901 Schedule A

Locomotive Categories for Investment, Amortization and Maintenance Expense

Road Freight

 
Code Description

101

Diesel, up to 2,999 H.P. including all road freight booster units

102

Diesel, 3,000 H.P. to 3,999 H.P.

103

Diesel, 4,000 H.P. to 4,999 H.P.

104

Diesel, 5,000 H.P. to 5,999 H.P.

105

Diesel, 6,000 H.P. and over

 

Road Passenger

 
Code Description

114

Diesel

115

All Other

 

Yard

 
Code Description

120

Diesel including all yard booster units

 

Operating Lease

 
Code Description

130

Locomotives under operating leases

 

Associated Equipment

 
Code Description

141

Generator Cars

142

Robot Cars

143

Major Locomotive Components (Spares)

190

Amounts Billed to Others

191

Cost of Work Performed for Others

 

Section 1902 Schedule B

Left blank intentionally

Section 1903 Schedule C

Freight Car Types for Investment, Amortization, and Maintenance Expense

 
Code Description

300

Box Car

310

Standard, Open Hopper Car

311

Standard, Covered Hopper Car- Non-Government

312

Equipped Hopper Car

313

Standard, Covered Hopper Car - Government

320

Gondola Car

340

Flat Car- General

341

Flat Car- Multi-Level

342

Flat Car- Intermodal

343

Flat Car- Bulkhead

370

Tank Car

380

All Other Freight Cars

 

Sections 1904 Schedule D-Schedule G

Left blank intentionally

Section 1908 Schedule H

Passenger Car Categories for Investment, Amortization, and Maintenance Expense

 
Code Description

500

Head-end Car (including baggage, combination, and battery charger cars)

501

Meal Service and Lounge Car (including club cars with meal service and dome cars)

502

Sleeping Car

503

Coach

507

Rail Diesel Car

508

Commuter Car (all car types)

 

Section 1909 Schedule I

Passenger Car Categories for Lease, Rental, Line Point Repair, Lubrication and Cleaning Expense

 
Code Description

550

Rail Diesel Car

553

Commuter Car (all car types)

554

Other

590

Amounts Billed to Others

591

Cost of Work Performed for Others

 

Section 1910 Schedule J-Schedule N

Left blank intentionally

Section 1915 Schedule O

Units of Property
This list of units of property is established for the purpose of designating the items of property which are subject to write-out write-in accounting in the course of replacement and major renewals.  When property is retired and not replaced the cost there of shall be written out of road and equipment accounts whether or not it constitutes a unit as established in this list.

Reference:  Instruction 1306

102 Grading

A retaining wall.

Riprap.

A protecting dyke.

A protecting crib.

A revetment.

A pipe or other structure to provide drainage.

103 Rail

New rail - 2000 feet (600 metres) of rail i.e. 1000 continuous feet (300 metres) of track in programmed replacement.

Relay rail - 2000 feet (600 metres) of rail i.e. 1000 continuous feet (300 metres) of track in programmed replacement.

105 Ties

Each tied laid in programmed replacement work.

106 Paved Concrete Trackbed (PACT System)

Paved concrete trackbed for 100 continuous feet (30 metres) of track in programmed replacement.

107 Other Track Material (O.T.M.)

Other track material installed in conjunction with programmed rail replacement requiring a rail investment change; in programmed work where a tie investment change is involved; or where there is a change in investment in O.T.M.

109 Ballast

Ballast for 1000 continuous feet (300 metres) of track in programmed replacement work.

Sub-ballast for 1000 continuous feet (300 metres) of track in programmed placement work.

115 Bridges

A steel or concrete bridge span.

A concrete, steel or stone pier or abutment.

A concrete or timber trestle, a complete bridge or approach.

A complete machinery installation for operating a moveable span.

A footwalk or roadway attached to a railway bridge. A bridge deck.

Any applicable units listed in account 102.

117 Culverts

A complete culvert.

119 Tunnels

The entire masonry, entire timber and entire metal lining of a tunnel or subway, including portals and wing walls.

Drainage - Each entire installation.

Lighting - Each entire installation.

Ventilation - Each entire installation.

121 Fences, Snow Sheds and Rock Sheds

A complete snow shed.

A complete rock shed.

A continuous mile of:

  • right-of-way fence;
  • permanent sand or snow fence.

123 Public Improvement

Any applicable units listed under other accounts.

125 Other Right-of-Way Property

Any applicable units listed under other accounts.

131 Office and Common Buildings

A complete building, including attached platform or ramp.

A complete platform of ramp structurally detached from a building.

Each retaining wall installation.

Each storm or sanitary sewer installation.

A track scale - fixed.

A track scale pit.

A fixed outside crane or conveyor system for handling freight.

A power plant.

A sub-station or complete switching station.

A power transmission tower.

Each outside steam, water, air, etc., pipeline installation.

A complete fence.

Paving - A complete installation.

A yard lighting system.

A yard communication system.

Any applicable units listed under other accounts.

133 Office and Common Buildings Moveable Equipment and Machinery

An office machine.

A business machine.

Office furnishings.

A general purpose computer.

A mobile track scale.

A mobile outside crane or conveyor system for handling freight.

A continuous mile or a separate installation if less than a mile of transmission line, including poles, wires, transformer switches and other appurtenances.

A transformer.

A boiler.

Any applicable units listed under other accounts.

135 Passenger Stations

Any applicable units listed under account 131.

137 Passenger Station Moveable Equipment

Any applicable units listed under account 133.

139 Roadway Buildings

Any applicable units listed under account 131.

141 Roadway Building Machines and Moveable Equipment

Any applicable units listed under account 145.

143 Equipment Repair Shops

A complete building, including attached platform.

A complete platform structurally detached from a building.

A turntable.

A turntable pit.

A transfer table with machinery.

A transfer table pit.

A sand storage, handling and drying apparatus.

Outdoor bins complete - Each complete installation.

A smoke stack not mounted on boiler.

A boiler washing plant - Each complete installation.

Each outside pipe installation for steam, air , water, etc.

Each sewer installation - storm or sanitary.

Paving - Each complete installation.

Each shop fence or wall installation.

Any applicable unit listed under other accounts.

145 Shop Machinery and Moveable Equipment

A machine.

Equipment.

A boiler installation - complete.

Testing equipment.

An overhead crane - complete.

149 Signals

A complete or partial signal system with associated parts.

A continuous mile or complete installation if less than a mile of:

  • pole line including cross arms, wires and appurtenances;
  • cable with associated parts;
  • conduit with associated parts.

A switch machine with associated parts.

A complete:

  • building;
  • interlocking plant;
  • interlocking machine;
  • signal bridge;
  • highway crossing protection system;
  • car retarder installation.

A complete or partial traffic control or C.T.C. system installation.

A  system for detecting a snowslide or rockfall - Each complete installation.

151 Rail Communication Systems

Outside Plant

  • A complete building.
  • A continuous mile or complete installation if less than a mile of:
    • pole line including cross arms, wires and appurtenances;
    • conduit with manholes and other associated parts.
  • In programmed work:
    • each pole, including guys and anchors;
    • each cross arm including braces, log screws and wood pins.
  • A continuous mile of single wire, including insulators, steel pins and transposition brackets.
  • A continuous section of 500 feet of cable including strands, clamps, supporting rings, wire and terminals.
  • Each loading system.
  • Each complete installation of pneumatic tubes.

Inside Plant

  • A complete bay, with or without associated equipment for:
    • terminal switching equipment;
    • telegraph switchboard;
    • other similar equipment.
  • A repeater unit with or without associated equipment.
  • A telex, teletype, facsimile, ticket or other similar transmitting or receiving equipment.
  • A concentrator unit with or without associated equipment.
  • An operating unit of assignment apparatus.
  • A network terminal or repeater for program including associated equipment.
  • Radio:
    • a one way radio channel terminal with modulating or demodulating equipment;
    • a one way radio channel repeater with intermediate frequency and modulating or demodulating equipment;
  • An antenna and associated transmission line.
  • A traffic switching system:
    • a receiver unit (position);
    • a sender unit (position);
    • a selector unit and associated equipment.
  • Reperforator or similar system:
    • a complete directing equipment cabinet;
    • a complete sending equipment cabinet;
    • a complete switching system.
  • A unit of testing equipment, fixed or portable.
  • Power Plant equipment:
    • a battery installation;
    • a charging unit;
    • a discharging unit;
    • an engine generator set and associated equipment.
  • A unit of work equipment:
    • cable hangers;
    • post hole diggers;
    • vehicles;
    • shop equipment;
    • experimental equipment, etc.

157 Intermodal Terminals

A complete loading ramp installation.

Any applicable unit listed under account 131.

159 Rail Freight Terminals

An automobile storage compound.

A container storage compound.

A system for loading and/or unloading special products – each complete installation.

Any applicable unit listed under accounts 131 and 133.

161 Marine Terminals

A timber or steel float bridge.

A wharf (including pile clusters).

A timber incline.

A bulkhead.

A jetty or breakwater.

A ferry rack (including pile clusters).

A float rack.

A complete machinery installation.

A timber or steel bridge.

A complete loading or unloading machine.

Any applicable units listed under other accounts.

163 Fuel Stations

A complete fuel supply system, including appurtenances.

A pumphouse.

A fuel oil storage tank (large).

Pumping machinery – each complete installation.

171 Locomotives

A locomotive unit.

A robot car.

A generator car.

A major spare component.

173 Freight Cars

A complete car.

175 Passenger Cars

A complete car, including motor equipment of motor driven car.

177 Intermodal Terminal Handling Equipment

Any applicable units in accounts 133, 179 and 181 employed solely in intermodal terminals.

179 Trailers, Semi-Trailers, Containers, Chassis and Bogies

A semi-trailer.

A trailer.

A freight container

A chassis or bogie unit.

181 Highway Tractors

A highway tractor (for over-the-road operations).

183 Roadway Machines

A complete machine for the maintenance and for construction of tracks, bridges and signals, including accessories.

187 Work Equipment

A complete car or machine, including accessories.

A boiler.

An engine.

A motor.

Mounted equipment (with or without self-contained machinery) such as concrete mixer, snow plough, crane or pile driver.

A complete vessel or boat.

Any applicable units listed under other accounts.

189 Other Non-Revenue Rolling Stock

Any applicable items listed under account 187.

191 Marine Equipment

A complete vessel or boat, exclusive of machinery.

Machinery.

Vessel equipment.

A boiler.

A motor.

An engine.

195 Miscellaneous Equipment

An automobile.

A truck.

A snowmobile.

Any applicable item listed under other accounts.

Appendix: List of UCA Amendments

1. Sections/Subsections

The following sections/subsections were:

a. Renumbered

To accommodate the addition of a new section under section 1200, the following sections were renumbered. The section added has been numbered 1201 and, as a result, all old sections were bumped up by 1 as follows:

Old New

1201

1202

1202

1203

1203

1204

1204

1205

 

Note: Any references to sections or subsections in the remainder of this document are based on the new numbering convention.

b. Amended

1103.02, 1104.01, 1106.01, 1202, 1202.04, 1202.05, 1202.06, 1203.01, 1203.03, 1203.08, 1206, 1303.07, 1305.01, 1305.03, 1311.02, 1311.13, 1501.03, 1502, 1517, 1705; text before accounts 400, 500; definition of "Employee Benefits"

c. Added

1201, 1202.03, 1203.07, 1203.09, 1203.10

d. Deleted

Definition of "Employee" in section 1000; sections and subsections 1104.03, 1104.04, 1104.05, 1313, 1314; note under subsection 1501.03

2. Accounts

The following accounts were:

a. Renumbered

Old New

819

817

839

831

 

b. Amended

301, 463, 511, 513, 515, 517, 571, 575, 741, 743, 747, 819, 820, 821, 835, 856, 861

c. Added

38, 197, 297, 351, 518, 519, 749, 635, 637, 813, 817 (the amounts that would have been recorded in old account 819 are now going to be recorded in account 817), 831 

d. Deleted

21, 43,
302 (the amounts that would have been recorded in old account 302 are now going to be recorded in account 301),
837 (the amounts that would have been recorded old account 837 are now going to be recorded in account 835),
839 (the amounts that would have been recorded old account 839 are now going to be recorded in account 831),
863

3. Schedules

The following schedules were:

a. Amended

Subsection 1802.01 – Schedule S-11, section 1903 - Schedule C

b. Deleted

Subsection 1803.11 - Schedule S-29, subsection 1902 – Schedule B, section 1905- Schedule E, section 1906 – Schedule F, section 1905 – Schedule G

4. Endnotes

The UCA currently in effect contains at the end of the document a section with endnotes. There were a total of 39 endnotes.

As part of the UCA review, Agency staff assessed these notes in order to determine if they were needed in the new UCA. As a result of the above assessment, some endnotes were deleted as they were deemed obsolete or redundant and others were integrated with the text to which they were appended.

The following table summarizes the amendments made.

Endnote Text Deleted Integrated

1

Note: The Canadian Transportation Agency may, for its regulatory purposes and at its discretion, give special consideration to stock-based forms of employee compensation.

Yes - obsolete

 

2

Statistics S-23B, the cost centre shall be both the area and dispatcher's territory.

Yes - Obsolete, part of old Geographic Cost Centres section

 

3

Statistics S-23B, the cost centre shall be both the area and dispatcher's territory.

Yes - Obsolete, part of old Geographic Cost Centres section

 

4

Statistics S-23B, the cost centre shall be both the area and dispatcher's territory.

Yes - Obsolete, part of old Geographic Cost Centres section

 

5 - 20

if used in cross-sectional regression analysis

Yes - Obsolete

 

21

Including booster units.

No

Added to Schedule A., Road Freight, code 101

22

Including booster units.

No

Added to Schedule A. –Yard, code 120

 

 

 

 

23

For maintenance expense only. Includes only locomotives on operating leases (Reference: Instruction 1312).

No

Replaced with:
“Locomotives under operating leases”, Schedule A, Operating Lease, code 130

24

For investment and amortization only.

Yes - obsolete

 

25 - 30

For repair expense only.

Yes - obsolete

 

31

In the case of “Grain Doors and Linings”, the category is defined by both car type and commodity.

Yes - deleted along with Schedule F

 

32

Includes both refrigerator cars and insulated box cars.

Yes - deleted along with Schedule F

 

33

Includes both refrigerator cars and insulated box cars.

Yes - deleted along with Schedule G

 

34

Includes baggage cars, combination (baggage and other functions) cars and battery charger cars.

No

Integrated with text of  code 500 in Schedule H

35

Includes club cars with meal service and done cars.

No

Integrated with text of code 501 in Schedule H

36

Includes all car types used in commuter service.

No

Integrated with text of code 508 in Schedule H

37

Includes all car types used in commuter service.

No

Integrated with text of code 553, in Schedule I

38 - 39

For repair expense only.

Yes -obsolete

 

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