Schedule 3E - Tangible Capital Asset Continuity - ARO

This schedule is similar to the Schedule 3C series, but includes only the TCA-ARO assets. School boards must input TCA-ARO capital asset activity from September 1, 2025 to August 31, 2026.

• In the Financial Statements, the land, land improvement, and building activities in the school year are reported at asset level. Once the data input into the Schedule 3E TCA ARO Detail Data input form is validated, the summarized information is loaded to this continuity schedule.

• In the Estimates and Revised Estimates, school boards enter all amounts at asset category level.

• In all cycles, activities for other asset classes (portables, moveable type assets, leasehold improvements, and capital leased assets) are reported at total asset category level. However, please note that in the Financial Statements the moveable type assets are recorded at a more detailed level (e.g., equipment - 5 years, equipment - 10 years, etc.).

Note that the lines for Construction In Progress and Pre-acquisition costs are closed for input on this schedule, because an ARO liability is incurred when a school board acquires control over an asset or begins to use it.

This schedule has three input tabs: TCA - ARO Gross Book Value, TCA - ARO Acc. Amort, and TCA - ARO NBV.

TAB: TCA - ARO Gross Book Value

This tab is for reporting changes in an estimate, liabilities incurred during the year, disposals, transfers between asset classes, and transfers to financial assets for TCA-ARO gross book value.

Column 1: ARO - Opening Balance September 1

The opening balances are pre-populated from the 2024-25 board-submitted Revised Estimates closing balances. Adjustments are not permitted in this column.

Column 2: ARO - Adjustments to Opening Balance

Input any adjustments to the opening balances of TCA-ARO assets’ gross book value at September 1, 2025, in this column. In Revised Estimates, the adjustment, if any, plus the pre-loaded opening balance should agree to the closing balance of the prior year Financial Statements.

Column 3: ARO - Changes in the Estimate

Input changes in the TCA-ARO asset values due to changes in the estimates of the related ARO liabilities. These could arise from new information or a reassessment in the year.

Column 4: ARO - Liabilities Incurred During the Year

Input increases in TCA-ARO asset values due to additional ARO liabilities incurred in the year.

Column 5: ARO - Disposals

Input TCA-ARO disposals, due to the sale or demolition of the related TCA asset. When ARO abatement occurs, there is no impact on TCA-ARO values; only the ARO liability is reduced. Negative values should be entered in this column.

Column 6: ARO - Transfers Between Asset Class

Use this column to transfer between the Assets in Service categories (Land Improvements, Buildings-40 years, Other Buildings, or Equipment) and the Assets Permanently Removed from Service category. All asset transfers from Capital Leased Assets to Assets Permanently Removed from Service or vice-versa are also to be reported here. Note that the amounts in this column should net to zero.

Column 7: ARO - Transfer to Financial Assets

Input any transfers from the Assets in Service categories (Land Improvements, Buildings-40 years, or Other Buildings) or the Assets Permanently Removed from Service category to assets held for sale in this column. Please refer to the Schedule 3D instructions for the criteria for assets held for sale. Negative values should be entered in this column.

Column 8: ARO - Closing Balance August 31

This column is calculated as the sum of columns 1 to 7.

TAB: TCA - ARO Accum. Amort

This tab is for reporting changes in an estimate, amortization expense, disposals, transfers between asset classes, and transfers to financial assets for TCA-ARO accumulated amortization. The instructions by column are the same as for the Gross Book Value tab but using accumulated amortization values, except for columns 11 and 12:

Column 11: ARO Accumulated Amortization - Changes in the Estimate

This is not used in most ARO reassessments, since they would only impact future amortization expenses; there is not a requirement to restate accumulated amortization for TCA-ARO when an ARO liability is reassessed. The exception is a rare situation where a reassessment of an ARO liability causes the liability value to be lower than the opening NBV of the TCA-ARO. Please refer to the ARO Accounting Policies and Implementation Guide (Appendix G) document for an example. Because of this, only negative values can be reported in this column.

Column 12: ARO Accumulated Amortization - Amortization Expense

Input amortization expenses in the year at asset category level. Please note that the remaining service life to be used for amortization of each TCA-ARO asset is the same as the related regular TCA asset.

TAB: TCA - ARO NBV

This tab displays the opening and closing net book values by asset category, and allows input of revenue recovery and loss.

Columns 17 & 18: ARO NBV - Closing Balance August 31, Opening Balance September 1

These columns calculate the opening and closing net book values by asset category, based on data in the Gross Book value and Accumulated Amortization tabs.

Column 19: ARO - Revenue Recovery

Input any revenue recovery on TCA-ARO assets by asset category, to reverse excess amortization taken on TCA-ARO in prior periods due to changes in estimates or disposal. Please refer to the ARO Accounting Policies and Implementation Guide (Appendix G) document for examples of journal entries which may generate a revenue recovery on ARO.

Column 20: ARO - Loss

Input any losses recorded on ARO by asset category, due to disposal. Please refer to the ARO Accounting Policies and Implementation Guide (Appendix G) document for examples of journal entries which may generate a loss on ARO. Negative values should be entered in this column.