Notes to the Consolidated Financial Statements
The adoption of this amended standard has required SaskEnergy to disclose its material accounting policies instead of its significant accounting policies. Accounting policy information is material if, when considered together with other information included in an entity’s financial statements, it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. Implementing this amended standard did not have a significant impact on the consolidated financial statements. b. Basis of consolidation i. Subsidiaries The Corporation’s direct and indirect subsidiaries, which are wholly owned by SaskEnergy, are as follows: Subsidiary Principal Activity Bayhurst Gas Limited Natural gas storage company BG Storage Inc. Natural gas storage company Many Islands Pipe Lines (Canada) Limited Natural gas transmission company TransGas Limited Natural gas transmission and storage company On June 1, 2023, SaskEnergy sold its capital stock in Saskatchewan First Call Corporation (SFCC) to a third- party entity. Previously, SFCC was a subsidiary of SaskEnergy whose principal activity was underground infrastructure database management. The consolidated financial statements include the accounts of the Corporation and its wholly owned subsidiaries with all significant inter-company transactions and balances being eliminated. ii. 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 has one joint arrangement: a 50.0 per cent ownership in the Totnes Natural Gas Storage Facility located in Saskatchewan, Canada. The joint arrangement is in the form of a joint operation, as the Corporation has the rights to the assets, and obligations for the liabilities, relating to the arrangement. 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 incurred directly in respect of its joint arrangement. c. Cash and cash equivalents Bank indebtedness forms 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. d. Natural gas in storage held for resale 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.
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