2. Basis of preparation (continued)
Information about critical judgments in applying accounting policies that have a significant effect on the amounts recognized in the condensed consolidated financial statements include:
Revenue recognition related to unbilled revenue Existence of decommissioning liabilities Identification of own-use derivative contracts
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 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
3. Summary of significant accounting policies
The accounting policies, as detailed in Note 3 to the consolidated financial statements for the year ended March 31, 2018, have been applied consistently, by the Corporation and its subsidiaries, to all periods presented in these condensed consolidated financial statements, with the exception of the change in accounting policy identified below.
a. Change in accounting policy
Effective April 1, 2018, the Corporation adopted IFRS 15 Revenue from contracts with customers . The new standard resulted in no changes to existing revenue recognition approaches. Additional disclosure of revenues has been provided in notes 11 and 12.
Revenue is measured based on the consideration specified in a contract with a customer. The Corporation recognizes revenue when it transfers control over a product or service to a customer.
In the comparative period, revenue was measured at the fair value of consideration received or receivable. Revenue from the rendering of services was recognized when the following conditions were satisfied: the amount of revenue could be measured reliably; it was probable that the economic benefits associated with the transaction would flow to the entity; the stage of completion of the transaction at the end of the reporting period could be measured reliably; and the costs incurred for the transaction and the costs to complete the transaction could be measured reliably.
b. Future changes in accounting policies
IFRS 16 Leases is a new standard that is not yet effective and has not yet been applied in preparing these condensed consolidated financial statements. IFRS 16 broadens the definition of a lease and increases transparency regarding a Corporation’s leasing obligations. Under the new standard, an asset and liability is recognized on the condensed consolidated statement of financial position for all material contracts that meet the definition of a lease. This standard is effective for annual periods beginning on or after January 1, 2019. The Corporation is continuing to review the new standard and has completed a preliminary assessment of the impact on its condensed consolidated financial statements. It is expected to have minimal impacts on leases but the Corporation has not yet determined the full impact of the standard.
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2018-19 FIRST QUARTER REPORT
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