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
Effective April 1, 2017, 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.
19
2017-18 SECOND QUARTER REPORT
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