SaskEnergy First Quarter Report - June 30, 2017

3. Summary of significant accounting policies (continued)

iii.

Transition

Changes in accounting policies resulting from the adoption of IFRS 9 have been applied retrospectively, except comparative periods have not been restated for retrospective application. Differences in the carrying amounts of financial assets and financial liabilities resulting from the adoption of IFRS 9 are recognized in retained earnings as at April 1, 2017.

The following table summarizes the impact of transition to IFRS 9 as at April 1, 2017:

Total

(millions)

Other Components of Equity Closing balance under IAS 39 as at March 31, 2017

$

-

(2)

Reclassification of market value losses on debt retirement funds under IFRS 9

$

(2)

Opening balance under IFRS 9 as at April 1, 2017

Retained Earnings Closing balance under IAS 39 as at March 31, 2017

$

786

2 1

Reclassification of market value losses on debt retirement funds under IFRS 9

Recognition of expected credit losses under IFRS 9

Opening balance under IFRS 9 as at April 1, 2017

$

789

iv. Classification of financial assets and financial liabilities upon initial application of IFRS 9

The following table summarizes the changes to the Corporation’s financial assets and financial liabilities measurement category under IFRS 9 compared to its original measurement category under IAS 39:

IFRS 9

IAS 39

Classifi-

Carrying Amount

Classifi-

Carrying Amount

(millions)

cation

cation

Financial and derivative assets Cash Trade and other receivables

FVTPL

$

1

FVTPL

$

1

Amortized cost FVOCI - debt instruments

112 101

LAR

111 101

Debt retirement funds

FVTPL

Fair value of derivative instrument assets

FVTPL

5

FVTPL

5

Financial and derivative liabilities Short-term debt

OL OL OL OL

293 109

OL OL OL OL

293 109

Trade and other payables

Dividends payable

14

14

Long-term debt

1,019

1,019

Fair value of derivative instrument liabilities

FVTPL

40

FVTPL

40

Classification details: FVTPL - fair value through profit or loss FVOCI - fair value through other comprehensive income OL - other liabilities LAR - loans and receivables

Each class of the Corporation’s financial assets and financial liabilities has maintained the same measurement category under IFRS 9 as its original measurement category under IAS 39, with the exception that financial assets previously classified as loans and receivables are now classified as amortized cost and debt retirement funds, previously classified as FVTPL, are now classified as FVOCI.

18

2017-18 FIRST QUARTER REPORT

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