Notes to the Consolidated Financial Statements
Information about significant management estimates and assumptions that have a risk of resulting in a significant adjustment is included in Note 3 as well as the following notes: Estimated unbilled revenue (Note 5) Expected credit losses (Note 5) Net realizable value of natural gas in storage held for resale (Note 6) Fair value of financial and derivative instruments (Note 8) Useful lives and depreciation rates for right-of-use (ROU) assets (Note 11) Useful lives and amortization rates for intangible assets (Note 12) Useful lives and depreciation rates for property, plant and equipment (Note 13) Recoverable amount of non-financial assets (Note 13)
Estimated unearned customer capital contributions (Note 15) Estimated future cost of decommissioning liabilities (Note 17) COVID-19 (Coronavirus) impact assessment
The COVID-19 pandemic has caused material disruption to businesses and has resulted in an economic slowdown. The Corporation has assessed and continues to monitor the impact of COVID-19 on its operations. Potential impacts include loss of revenue, disruption of supply chain, impairments of assets and challenges associated with a remote or unavailable workforce. Estimates of these impacts have been included where appropriate. Given the uncertainty of the magnitude and duration of the pandemic, it is not possible to determine if there are significant additional impacts on current operations or reported asset and liability values. The Corporation’s business continuity plans are currently in place while continuing to effectively operate assets, conduct commercial activities and execute on projects with a focus on health, safety and reliability. SaskEnergy is considered essential for the province of Saskatchewan given the important role the Corporation’s infrastructure plays in providing energy to customers. e. Change in accounting estimates Effective April 1, 2020, there was a change in the current market discount rate basis used to determine the present value of the obligation. These changes in the estimation methodology were applied prospectively resulting in a net increase in provisions of approximately $10 million as at March 31, 2021. 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently by the Corporation and its subsidiaries to all periods presented in the consolidated financial statements. a. Future changes in accounting policies The following new or amended accounting standards are not effective for the year ended March 31, 2021 and have not been applied in preparing these condensed consolidated financial statements: • Amendments to IFRS 10, Consolidated financial statement s • Amendments to IAS 37, Onerous contracts – Cost of fulfilling a contract • Amendment to IAS 1, Classification of Liabilities as current or non-current • Amendments to IFRS 3, Updating a reference to the conceptual framework • Amendments to IAS 16, Property, Plant and Equipment: Proceeds before intended use The Corporation is currently analyzing these changes to determine the full impact upon adoption.
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