Order No. 2010-R-277

May 18, 2010

File No. T6530/08

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Pursuant to section 156 of the Canada Transportation Act, the Canadian Transportation Agency amends the Uniform Classification of Accounts and Related Railway Records dated April 1, 1998 as follows:

1. By deleting or amending sections or pages outlined in Schedule A.
2. These amendments are effective as of January 1, 2011, at the latest.

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Schedule A

Section 1201 – Application of Generally Accepted Accounting Principles

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Delete paragraph 1201.03.

Amend paragraph 1201.04 as highlighted:

From time to time, the above-mentioned accounting principles change. It is possible that the new principles will not be appropriate for the railways. Accordingly, when new accounting principles are published, carriers may, within 60 days of publication, submit to the Agency 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, if applicable.

Amend paragraph 1201.05 as highlighted:

Where the Agency has received a submission from a carrier concerning a new accounting principle, it will direct all carriers of the accounting principles and methods to be followed before the earlier of the following deadlines: the effective date of the accounting principle, or a date 180 days after publication of the accounting principle.

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Schedule A

Section 1202 – Scope of UCA

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Amend paragraph 1202.03 as highlighted:

Canadian rail operations are those of:

• Canadian railway companies;
• 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 accounting principles generally accepted in Canada.);
• lines in Canada owned and/or operated by United States railway companies;
• affiliated railway companies or terminal companies which are jointly owned;
• leased railway companies included in Canadian rail operations.

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Section 1514 – Rail Share of Corporate Income Taxes

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Amend Section 1514 as highlighted:

When the railway 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.