Management’s Discussion and Analysis
The timing of future decommissioning is conditional upon the Corporation’s anticipated ongoing use for these facilities, while future decommissioning costs are estimated based on the Corporation’s experience and presented on a discounted basis. • At March 31, 2021, the Corporation’s provisions were estimated at $227 million. • A one per cent increase in the discount rate used to determine the provisions would have resulted in a $9 million decrease in provisions at the end of March 31, 2021. • A one per cent decrease would have resulted in an $8 million increase. A provision for remediation is accrued when the occurrence of an environmental expenditure, related to present or past activities of the Corporation, is considered probable and the costs of remedial activities can be reasonably estimated. The fair value of the estimated costs for investigations and remediation at identified sites is recorded as a provision in profit or loss. These provisions are based on management’s best estimate considering current environmental laws and regulations and recorded at fair value. The Corporation reviews its estimates of future environmental expenditures on an ongoing basis.
property, plant and equipment are available for use. The Corporation’s customer capital contributions, particularly those related to the transmission system, are often subject to refunds over a certain period. Consequently, when the related property, plant and equipment are available for use, an estimate of the potential refund is recorded as a liability until the refund period has passed. • At March 31, 2021, the Corporation estimated $5 million of contract liabilities, where the customer has paid a customer capital contribution in advance of construction and the related facilities are not yet available for use. • The Corporation estimated $6 million in refund liabilities, where the customer’s facilities are in service
and a refund may be available to the customer depending on the amount of natural gas the customer actually flows compared to what was estimated at contract inception.
Estimated Future Costs of Decommissioning Liabilities Financial statement reference – Note 17
The Corporation determines its obligations, legal and constructive, for the future costs of decommissioning certain natural gas facilities by estimating both the associated costs and timing of the necessary cash flows.
ACCOUNTING POLICY CHANGES In 2020-21, the Corporation applied a number of amendments to IFRS Standards and Interpretations issued by the IASB that are effective for an annual period that begins on or after January 1, 2020. Their adoption has not had any material impact on the disclosures or on
the amounts reported in the financial statements. The IASB has issued new and amended standards that will become effective in future periods. Details on current and future changes in accounting policies are provided within Note 3 of the consolidated financial statements.
Made with FlippingBook Ebook Creator