Notes to the Consolidated Financial Statements
Information about significant management estimates and assumptions that have a risk of resulting in a significant adjustment is included in Note 3 as well as the following notes: Estimated unbilled revenue (Note 5) Estimated credit losses (Note 5) Net realizable value of natural gas in storage held for resale (Note 6)
Fair value of financial and derivative instruments (Note 8) Useful lives and depreciation rates for ROU assets (Note 10) Useful lives and amortization rates for intangible assets (Note 11) Useful lives and depreciation rates for property, plant and equipment (Note 12) Recoverable amount of non-financial assets (Note 12)
Estimated unearned customer capital contributions (Note 15) Estimated future cost of decommissioning liabilities (Note 17) 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently by the Corporation and its subsidiaries to all periods presented in the consolidated financial statements. a. Changes in accounting policies i. Leases Effective April 1, 2019, the Corporation adopted IFRS 16, Leases (IFRS 16), which supersedes IAS 17, Leases (IAS 17) and International Financial Reporting Interpretations Committee Interpretation 4, determining whether an arrangement contains a lease (IFRIC 4). The Corporation has applied the new standard using the modified retrospective approach, which does not require restatement on transition. Comparative information has not been restated and continues to be reported under IAS 17. There was no impact to opening retained earnings upon adoption. IFRS 16 specifies how the Corporation will recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognize assets and liabilities for all leases unless the lease term is 12 months or less, or the asset group has a low value. It also eliminates the previous separate treatment of operating leases. The focus of this standard is on controlling the use of an asset. On adoption, management elected to use the following practical expedients permitted under the standard: • Grandfather the assessment of which transactions are leases by applying IFRS 16 only to contracts that were previously identified as leases under IAS 17. • Recognize right-of-use (ROU) assets at an amount equal to the lease liability for leases previously treated as operating leases. • Treat leases ending within 12 months of conversion as short-term leases. • Exclude initial direct costs for the measurement of ROU assets at date of initial application. • Use of hindsight in determining lease terms. • Apply a single discount rate to a portfolio of leases with reasonably similar characteristics.
p.53
Made with FlippingBook Ebook Creator