Notes to the Consolidated Financial Statements
1. General Information SaskEnergy Incorporated (SaskEnergy or the Corporation) is a Saskatchewan provincially owned Crown corporation operating under authority of The SaskEnergy Act . The address of SaskEnergy’s registered office and principal place of business is 1777 Victoria Avenue, Regina, Saskatchewan, Canada S4P 4K5. The Corporation owns and operates natural gas-related businesses located both within and outside of Saskatchewan. By virtue of The Crown Corporations Act, 1993 , SaskEnergy has been designated as a subsidiary of Crown Investments Corporation of Saskatchewan (CIC), a Saskatchewan provincially owned Crown corporation. Accordingly, the financial results of SaskEnergy are included in the consolidated financial statements of CIC. As a provincial Crown corporation, SaskEnergy and its wholly owned subsidiaries are not subject to Federal or Provincial income taxes in Canada. On December 3, 2024, the Government of Saskatchewan introduced The SaskEnergy (Carbon Tax Fairness for Families) Amendment Act, 2024 , which fulfilled the government’s commitment to extend the carbon tax exemption on home heating. The Bill amended The SaskEnergy Act and The SaskEnergy (Carbon Tax Fairness for Families) Amendment Act, 2023 , to repeal a sunset clause, which was scheduled to take effect on December 20, 2024, thus ensuring that the Government of Saskatchewan remains the sole registered distributor of natural gas for the purposes of the federal Greenhouse Gas Pollution Pricing Act throughout 2025 and beyond. Further to this, on March 15, 2025, the Federal Government announced it is eliminating the consumer carbon tax (fuel charge) under Part I of the Greenhouse Gas Pollution Pricing Act (GGPPA) by reducing the carbon charge rate to $0.00, effective April 1, 2025. On March 27, 2024, the Canada Energy Regulator (CER) removed the exemption for a set aside mechanism (SAM) for one of the Corporation’s subsidiaries. SAMs are intended to provide security for future abandonment costs relating to a corporation’s infrastructure, and would normally take the form of a surety bond, letter of credit or trust. Further to a follow up application, on March 4, 2025, the Commission of the CER granted a new exemption from the requirement. The exemption will remain in effect as long as the subsidiary remains wholly owned by a Crown corporation. 2. Basis of Preparation a. Statement of compliance The consolidated financial statements have been prepared in accordance with IFRS Accounting Standards, as issued by the International Accounting Standards Board (IASB). The consolidated financial statements were authorized for issue by the Board of Directors on May 22, 2025. b. Basis of measurement The consolidated financial statements include the accounts of the Corporation and its wholly owned subsidiaries with all significant transactions and balances being eliminated. The consolidated financial statements have been prepared on the historical cost basis except for the following items, which are described in Note 3:
Financial instruments classified as at fair value through profit or loss Financial instruments classified as at fair value through other comprehensive income Employee future benefits Provisions Natural gas in storage held for resale
c. Functional and presentation currency The consolidated financial statements are presented in Canadian dollars, the Corporation’s functional currency, unless otherwise stated. All financial information presented in Canadian dollars has been rounded to the nearest million.
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