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, with the exception of the changes in accounting policies identified below. Certain comparative amounts in the consolidated statement of comprehensive income have been reclassified to conform with the current year’s presentation (Note 29).
a. Changes in accounting policies Effective January 1, 2014, the Corporation adopted the following new and amended IFRS: IAS 32 Financial Instruments: Presentation IAS 36 Impairment of Assets
IFRS 10 Consolidated Financial Statements IFRS 12 Disclosure of Interests in Other Entities IFRIC 21 Levies The adoption of these amended standards had no impact on the consolidated financial statements for the year ended December 31, 2014. b. Basis of consolidation Subsidiaries are entities controlled by SaskEnergy. The results of subsidiaries are included in the consolidated financial statements from the date control commences until the date control ceases. All intra-group balances and transactions are eliminated in preparing the consolidated financial statements. The Corporation’s direct and indirect subsidiaries, which are wholly owned by SaskEnergy, are as follows:
Subsidiary
Principal Activity
Energy services company Natural gas storage company Natural gas storage company Natural gas transmission company Underground infrastructure database company Natural gas distribution company Natural gas transmission and storage company
Bayhurst Energy Services Corporation Bayhurst Gas Limited BG Storage Inc. Many Islands Pipe Lines (Canada) Limited Saskatchewan First Call Corporation 4115317 Manitoba Ltd. (formerly Swan Valley Gas Corporation) TransGas Limited
c. Joint arrangements When assessing whether a joint arrangement is in the form of a joint operation or a joint venture, the Corporation considers the arrangement’s structure, legal form and contractual terms as well as any other relevant factors. The Corporation’s existing joint arrangements, which are identified below, are in the form of joint operations as the Corporation has the rights to the assets, and obligations for the liabilities, relating to the arrangements. The consolidated financial statements include the Corporation’s share of jointly controlled assets, incurred liabilities, revenue and expenses as well as any liabilities and expenses that the Corporation has incurred directly in respect of its joint arrangements.
Joint Arrangement
Operating Jurisdiction
Interest
Principal Activity
Kisbey Gas Gathering and Processing Facility
Saskatchewan, Canada Saskatchewan, Canada
50.0% Natural gas processing 50.0% Natural gas storage
Totnes Natural Gas Storage Facility
d. Cash and cash equivalents The Corporation does not hold any short-term investments that would be classified as cash equivalents. Bank indebtedness forms a part of the Corporation’s cash management and is included as a component of cash and cash equivalents for the purpose of the consolidated statement of cash flows. e. Natural gas in storage Natural gas in storage is stated at the lower of weighted average cost and net realizable value. Net realizable value is determined using natural gas market prices based on anticipated delivery dates.
44
Consolidated Financial Statements
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