Notes to the Consolidated Financial Statements
As all eligible employees reached the maximum contribution period of 35 years, the Corporation is no longer required to make contributions to the plan. iii. Retiring allowance plan Certain employees of the Corporation are members of a retiring allowance plan. The Corporation’s obligation is the amount of future benefit that employees have earned in return for their service in the current and prior periods. The future benefit is actuarially determined using the projected unit credit method. Any actuarial gains or losses are recognized in other comprehensive income while all current service costs and interest expense are recognized in net income. Actuarial gains and losses are transferred from other equity to retained earnings in the year it is recognized in other comprehensive income. The Corporation measures its future benefit obligations for accounting purposes at March 31. The accrued employee benefits liability at March 31, 2024 was $3 million (2023 - $3 million). The Corporation has not established a trust nor does it hold property for the specific purpose of providing benefits to the participants of the plan. Benefits are funded by the current operations of the Corporation. l. Provisions Provisions are recognized when the following conditions are met: the Corporation has a present obligation, legal or constructive, as a result of a past event; it is probable that the Corporation will be required to settle the obligation; and a reliable estimate of the amount of the obligation can be made. Provisions are determined by discounting the expected future cash flows at a rate that reflects current market assessments of the time value of money and the risks specific to the obligation. Decommissioning liabilities A decommissioning liability is a legal or constructive obligation associated with the decommissioning of certain natural gas facilities. The Corporation recognizes a decommissioning liability, with a corresponding increase to property, plant and equipment, in the period the facility is commissioned, provided a reasonable estimate of the expenditure required to settle the present obligation can be determined. The estimated expenditure of a decommissioning liability is based on detailed studies that take into account various assumptions regarding the anticipated future cash flows, including the method and timing of decommissioning. The future cash flows are discounted at a credit-adjusted risk-free rate based on the yield of Government of Saskatchewan bonds. The unwinding of the discount on provisions is recognized in net income as finance expense over the estimated time period until settlement of the obligation. The corresponding increase to property, plant and equipment is depreciated on a straight-line basis over the estimated useful life of the related asset. At each reporting date, the estimated carrying value of a decommissioning liability is reviewed, with any changes recognized in the consolidated financial statements. m. Revenue The SaskEnergy Act was amended in December 2023. The amendment provided that, as of January 1, 2024, and for the purposes of Part 1 of the Greenhouse Gas Pollution Pricing Act (GGPPA) , the Provincial Crown is the sole registered distributor of natural gas in Saskatchewan, in place of the Corporation. The Corporation may purchase, distribute, sell, manufacture, produce, transport, gather, compress and store natural gas as per The SaskEnergy Act. The Corporation’s natural gas commodity revenue and transportation services are based on the consideration specified in contracts with customers.
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