Notes to the Consolidated Financial Statements
Level 3 inputs are unobservable for the particular assets and liabilities as at the reporting date. The Corporation did not classify any of its fair value measurements within Level 3. 2025 2024
Fair Value Hierarchy
Carrying Amount Fair Value
Carrying Amount Fair Value
(millions)
Classification
FINANCIAL AND DERIVATIVE ASSETS Cash
$
2 $
2 $
FVTPL
Level 1
20 $
20
171 197
171 197
Trade and other receivables
AC
N/A
185 179
185 179
Debt retirement funds
FVOCI FVTPL
Level 2 Level 2
5
5
Fair value of derivative instruments
11
11
FINANCIAL AND DERIVATIVE LIABILITIES Short-term debt
187 192
187 192
AC AC AC AC
N/A N/A N/A N/A
245 143
245 143
Trade and other payables
16
16
Dividends payable Long-term debt
6
6
1,862
1,726
1,767
1,576
12
12
Fair value of derivative instruments
FVTPL
Level 2
26
26
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, 2025, natural gas derivative instruments had the following fair values, notional values and maturities in the next five fiscal years: (millions) 2026 2027 2028 2029 2030 Total Fair value $ (4) $ (1) $ (2) $ - $ - $ (7) Notional value $ (45) $ (25) $ (11) $ 1 $ - $ (80)
Fair value - decrease in net income Notional value - estimated undiscounted net cash (outflow) inflow
Financial assets and liabilities are offset within the consolidated statement of financial position if the Corporation has the legal right to offset and intends to settle on a net basis. When natural gas contracts settle or become realized, the amount due to or from counterparties is recorded within trade payables or trade receivables, respectively. The Corporation offsets these amounts when the counterparty and timing of settlement are the same, which reflects the expected future cash flows from settling its natural gas contracts.
72
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