2023-24 SaskEnergy Annual Report

Notes to the Consolidated Financial Statements

2024

2023

W

Fair Value Hierarchy

Carrying Amount

Fair Value

Carrying Amount

Fair Value

Classification

(millions)

FINANCIAL AND DERIVATIVE ASSETS Cash

$

20 $

20 $

FVTPL

Level 1

6 $

6

185 179

185 179

Trade and other receivables

AC

N/A

248 160

248 160

Debt retirement funds

FVOCI FVTPL

Level 2 Level 2

11

11

Fair value of derivative instruments FINANCIAL AND DERIVATIVE LIABILITIES Short-term debt

55

55

245 143

245 143

AC AC AC AC

N/A N/A N/A N/A

311 145

311 145

Trade and other payables

6

6

Dividends payable Long-term debt

6

6

1,767

1,576

1,647

1,508

26

26

Fair value of derivative instruments

FVTPL

Level 2

36

36

Classification details: FVTPL - fair value through profit or loss

AC - amortized cost FVOCI - fair value through other comprehensive income

The fair value of debt retirement funds is determined by Saskatchewan’s Ministry of Finance using a market approach with information provided by investment dealers. To the extent possible, valuations reflect indicative secondary pricing for these securities. In all other circumstances, valuations are determined with reference to similar actively traded instruments. The fair value of natural gas derivative instruments is determined using a market approach. The Corporation obtains quoted market prices from sources such as the Canadian Gas Price Reporter and the Natural Gas Exchange, independent price publications and over-the-counter broker quotes. The fair value of long-term debt is determined for disclosure purposes only using an income approach. Fair values are estimated using the present value of future cash flows discounted at the market rate of interest for the equivalent Province of Saskatchewan debt instruments. Notional values are an approximation of future undiscounted net cash flows. For physical natural gas contracts, the notional value is based on the contract price. Where contract prices are referenced to an index price that has not yet been fixed, the market price is used to estimate the contract price. As at March 31, 2024, natural gas derivative instruments had the following fair values, notional values and maturities in the next five fiscal years: (millions) 2025 2026 2027 2028 2029 Thereafter Total Fair value $ (17) $ 1 $ 1 $ - $ - $ - $ (15) Notional value $ (37) $ (29) $ (26) $ (11) $ 1 $ - $ (102)

Fair value - increase (decrease) in net income Notional value - estimated undiscounted net cash (outflow) inflow

76

Made with FlippingBook Ebook Creator