BRITISH COLUMBIA HYDRO AND POWER AUTHORITY

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2016 AND 2015
NOTE 12: INTANGIBLE ASSETS
British Columbia Hydro and Power Authority
(in millions)
Land
Rights
Internally
Developed
Software
Purchased
Software Other
Work in
Progress Total
Cost
Balance at March 31, 2014 $ 183 $ 85 $ 334 $ 19 $ 46 $ 667
Net additions 15 34 32 21 17 119
Disposals and retirements - - - (9) (4) (13)
Balance at March 31, 2015 198 119 366 31 59 773
Net additions 42 30 73 7 1 153
Disposals and retirements - - (2) (19) (2) (23)
Balance at March 31, 2016 $ 240 $ 149 $ 437 $ 19 $ 58 $ 903
Accumulated Amortization
Balance at March 31, 2014 $ - $ (21) $ (129) $ (8) $ - $ (158)
Amortization expense - (17) (48) (3) - (68)
Balance at March 31, 2015 - (38) (177) (11) - (226)
Amortization expense - (21) (48) - - (69)
Disposals and retirements - (4) 5 - - 1
Balance at March 31, 2016 $ - $ (63) $ (220) $ (11) $ - $ (294)
Net carrying amounts
At March 31, 2015 $ 198 $ 81 $ 189 $ 20 $ 59 $ 547
At March 31, 2016 $ 240 $ 86 $ 217 $ 8 $ 58 $ 609
Land rights consist primarily of statutory rights of way acquired from the Province in perpetuity. These
land rights have indefinite useful lives and are not subject to amortization. These land rights are tested for
impairment annually or more frequently if events or changes in circumstances indicate that the asset value
may not be recoverable.
NOTE 13: RATE REGULATION
Regulatory Accounts
The following regulatory assets and liabilities have been established through rate regulation. In the absence
of rate regulation, these amounts would be reflected in total comprehensive income unless the Company
sought recovery through rates in the year in which they are incurred. For the year ended March 31, 2016,
the impact of regulatory accounting has resulted in a net increase to total comprehensive income of $475
million (2015 - $734 million) which is comprised of an increase to net income of $403 million (2015 -
$470 million) and an increase to other comprehensive income of $72 million (2015 – $264 million
increase). For each regulatory account, the amount reflected in the Net Change column in the following
regulatory tables represents the impact on comprehensive income for the applicable year, unless otherwise
recovered through rates. Under rate regulated accounting, a net decrease in a regulatory asset or a net
increase in a regulatory liability results in a decrease to comprehensive income.