2019-20 SaskEnergy Annual Report

Management’s Discussion and Analysis

A provision for remediation is accrued when the occurrence of an environmental expenditure, related to present or past activities of the Corporation, is considered probable and the costs of remedial activities can be reasonably estimated. The fair value of the estimated costs for investigations and remediation at identified sites is recorded as a provision in profit or loss. These provisions are based on management’s best estimate considering current enviornmental laws and regulations and recorded at fair value. The Corporation reviews its estimates of future environmental expenditures on an ongoing basis. ACCOUNTING POLICY CHANGES In 2019-20, the Corporation adopted IFRS 16 Leases (refer to the March 31, 2020 year-end audited consolidated financial statements for more information). The IASB has issued new and amended standards that will become effective in future periods. Details on future changes in accounting policies are provided within Note 3 of the consolidated financial statements.

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