Notes to the Consolidated Financial Statements 1. General information
SaskEnergy Incorporated (SaskEnergy or the Corporation) is a Saskatchewan provincially owned Crown corporation operating under authority of The SaskEnergy Act . The address of SaskEnergy’s registered office and principal place of business is 1777 Victoria Avenue, Regina, Saskatchewan, Canada S4P 4K5. The Corporation owns and operates natural gas-related businesses located both within and outside Saskatchewan. By virtue of The Crown Corporations Act, 1993 , SaskEnergy has been designated as a subsidiary of Crown Investments Corporation of Saskatchewan (CIC), a Saskatchewan provincially owned Crown corporation. Accordingly, the financial results of SaskEnergy are included in the consolidated financial statements of CIC. As a provincial Crown corporation, SaskEnergy and its wholly owned subsidiaries are not subject to Federal or Provincial income taxes in Canada.
2. Basis of preparation
a. Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB). The consolidated financial statements were authorized for issue by the Board of Directors on February 27, 2015. b. Basis of measurement The consolidated financial statements have been prepared on the historical cost basis except for the following items, which are described in Note 3: Financial instruments classified as at fair value through profit or loss Employee future benefits Provisions c. Functional and presentation currency The consolidated financial statements are presented in Canadian dollars, the Corporation’s functional currency, unless otherwise stated. All financial information presented in Canadian dollars has been rounded to the nearest million. d. Use of estimates and judgments In the application of the Corporation’s accounting policies, which are described in Note 3, management is required to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, revenue and expenses. Actual results may differ from these estimates. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised as well as any future periods affected. Information about critical judgments in applying accounting policies that have a significant effect on the amounts recognized in the consolidated financial statements is included in Note 3 as well as the following notes: Revenue recognition related to unbilled revenue (Note 5) Existence of decommissioning liabilities (Note 19) Information about significant management estimates and assumptions that have a significant risk of resulting in a material adjustment is included in Note 3 as well as the following notes: Estimated unbilled revenue (Note 5) Net realizable value of natural gas in storage held for resale (Note 6) Fair value of financial and derivative instruments (Note 10) Useful lives and amortization rates for intangible assets (Note 12) Useful lives and depreciation rates for property, plant and equipment (Note 13)
Estimated unearned customer capital contributions (Note 17) Estimated future cost of decommissioning liabilities (Note 19)
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2014 Annual Report SaskEnergy
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