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[IPSCO Product At-a-Glance]
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[Form 10-K]
[Printed Version]
Form 10K - Note 5 page 1/1
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5       Accounting Change

Effective April 1, 2004, the Company changed its method of accounting for the costs of major overhauls and repairs. Under the new method, the cost of major overhauls and repairs which are not capitalized are expensed as incurred. Previously, the non-capital estimated cost of such overhauls and repairs was accrued on a straight-line basis between the major overhauls and repairs with actual costs charged to the accrual as incurred. The Company believes the new method more appropriately recognizes such costs in the period incurred.

The impact of the accounting change was applied with the cumulative effect recorded through income on the date of adoption of the change. The impact of the change on the financial statements as of April 1, 2004 is as follows:

 

 

Increase
(decrease)

 

Income taxes recoverable

 

$

(3,699

)

Deferred income taxes—current asset

 

(5,212

)

Accounts payable and accrued charges

 

(25,056

)

Deferred income taxes—long-term liability

 

1,221

 

Cumulative translation adjustment

 

674

 

Net income

 

14,250

 

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This is an interactive electronic version of IPSCO's 2006 Annual Report, and it is intended to be complete and accurate. The contents of this version are qualified in their entirety by reference to the printed version. A reproduction of the printed version is available in PDF format on this Web site.