2. Basis of preparation (continued)
Information about significant management estimates and assumptions that have a risk of resulting in a significant adjustment within the next financial period include:
Estimated unbilled revenue Net realizable value of natural gas in storage held for resale Fair value of financial and derivative instruments Useful lives and amortization rates for right-of-use assets Useful lives and amortization rates for intangible assets Useful lives and depreciation rates for property, plant and equipment Recoverable amount of non-financial assets
Estimated unearned customer capital contributions Estimated future cost of decommissioning liabilities
e. Change in accounting estimate
Following the implementation of the results of a decommission study, the estimated amount of cash flows to settle the obligation to dismantle or restore capital assets was increased. Additionally, there was a change in the current market discount rates applied to present value the obligation, which resulted in a decrease to the provision. These changes in the estimate was applied prospectively resulting in a net decrease in provisions of approximately $54 million.
3. Summary of changes in significant accounting policies
a. Change in accounting policies
Effective April 1, 2020 the Corporation adopted the following amended IFRS on a prospective basis:
Changes to the Conceptual framework
Amendments to IFRS 3 Business combinations Amendments to IAS 1 Presentation of financial statements and IAS 8 Accounting policies, Changes in Accounting Estimates and Errors The adoption of these amended standards has resulted in no changes within the condensed consolidated financial statements for the period ended June 30, 2020 and are not expected to have a material impact in the future.
b. Future changes in accounting policies
The following new or amended accounting standards are not effective for the period ended June 30, 2020 and have not been applied in preparing these condensed consolidated financial statements: Amendments to IFRS 10, Consolidated financial statements IAS 28, Investments in associates and joint ventures
The Corporation is currently analyzing these changes to determine the full impact upon adoption.
2020-21 First Quarter Report
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