3. Items to be Individually Disclosed in Pipeline Owners' Financial Statements
3.1.1 Proposed Requirements
29. The Ministry proposes that pipeline owners be required to specifically identify the following items in their disclosed financial statements3:
- all material transactions between related parties;
- a range of prescribed significant items;
- those items which form the basis of the financial performance measures; and
- all items that are of such a size, nature or incidence that their disclosure is necessary for understanding of the business (consistent with GAAP).
30. A list of items covering (i), (ii) and (iii) is provided in Annex 3. This list is not exhaustive and does not preclude the disclosure of other individual items, particularly if required under GAAP.
3.1.2 Rationale for Proposal
31. A requirement to disclose certain information in the financial statements would facilitate (i) analysis of the performance of Pipeline businesses; (ii) analysis of the appropriateness of pipeline owners' allocations amongst their different businesses; (iii) reconstruction of the financial performance measures (if disclosed allocations are deemed inappropriate); and (iv) consistency with GAAP.
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