4. Natural gas in storage held for resale
As at December 31, 2018
As at March 31, 2018
(millions)
Cost
$
72
$
70
Revaluation to net realizable value
(19)
(33)
$
53
$
37
The net realizable value of natural gas in storage at the end of the quarter was $19 million below cost (March 31, 2018 - $33 million below cost). As at December 31, 2018, the Corporation expected that $48 million of the current inventory value would be sold or consumed within the next year, and $5 million of the current inventory value would be sold or consumed after more than one year.
5. Financial and derivative instruments
For recurring and non-recurring fair value measurements, the Corporation estimates the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the reporting date under current market conditions. This requires the Corporation to make certain assumptions, including the principal (or most advantageous) market, the most appropriate valuation technique and the most appropriate valuation premise. The Corporation’s own credit risk and the credit risk of the counterparty have been taken into account in determining the fair value of financial assets and liabilities, including derivative instruments.
As at December
As at March
31, 2018
31, 2018
Classifi-
Fair Value Carrying Hierarchy Amount
Fair
Carrying Amount
Fair
(millions)
cation
Value
Value
Financial and derivative assets Cash Trade and other receivables
FVTPL
Level 2 Level 2 Level 2
$
2
$
2
$
-
$
-
AC
115 116
115 116
141 106
141 106
Debt retirement funds
FVOCI
Fair value of derivative instrument assets
FVTPL
Level 2
56
56
61
61
Financial and derivative liabilities Bank indebtedness
FVTPL
Level 2 Level 2 Level 2 Level 2 Level 2 Level 2
-
-
3
3
Short-term debt
OL OL OL OL OL
237
237
254 127
254 127
Trade and other payables Finance lease obligation
81
81
8
8
11 23
11 23
Dividends payable
17
17
Long-term debt
1,230
1,338
1,081
1,207
Fair value of derivative instrument liabilities
FVTPL
Level 2
32
32
50
50
Classification details: FVTPL - fair value through profit or loss AC - amortized cost FVOCI - fair value through other comprehensive income OL - other liabilities
In measuring fair value, the Corporation classifies items according to the fair value hierarchy based on the amount of observable inputs.
23
2018-19 THIRD QUARTER REPORT
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