Notes to the Consolidated Financial Statements
Vehicles, equipment, computers and computer equipment previously recognized as finance leases under IAS 17 were transferred to ROU assets on transition to IFRS 16, measured at an amount equal to the outstanding lease liability. The ROU assets for vehicles will be depreciating at a slower rate than the associated lease liability and are therefore recognized at a higher amount upon adoption. The Corporation applied the definition of a lease and related guidance under IFRS 16 to all existing lease contracts as at April 1, 2019. Under IFRS 16, the Corporation assesses whether a contract is a lease based on whether the contract conveys the right to control the use of an underlying asset for a period of time in exchange for consideration. The Corporation allocates the consideration in the contract to each lease component on the basis of their relative stand- alone prices. The ROU asset is initially measured at cost, which comprises the initial amount of the lease liability, any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or site on which it is located, less any lease payments made at or before the commencement date. The ROU asset may be adjusted for certain re-measurements of the lease liability and impairment losses. Leases that have terms of less than 12 months or leases on which the underlying asset is of low value are recognized as an expense in the Consolidated Statement of Comprehensive income on a straight-line basis over the lease term. ii. Other changes In the current year, the Corporation has applied a number of amendments to IFRS Standards and Interpretations issued by the IASB that are effective for an annual period that begins on or after 1 January, 2019. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. iii. Future changes in accounting policies The following accounting standard changes are effective for periods beginning on or after January 1, 2020: • Revised Conceptual Framework • Amendments to IFRS, 3 Business Combinations - Definition of a Business • Amendments to IAS ,1 Presentation of Financial Statements and IAS 8, Accounting Policies It is expected that these changes will have little to no impact to the consolidated financial statements of the Corporation. b. Basis of consolidation The Corporation’s direct and indirect subsidiaries, which are wholly owned by SaskEnergy, are as follows:
Subsidiary
Principal Activity
Bayhurst Gas Limited
Natural gas storage company Natural gas storage company Natural gas transmission company
BG Storage Inc.
Many Islands Pipe Lines (Canada) Limited Saskatchewan First Call Corporation
Underground infrastructure database company Natural gas transmission and storage company
TransGas Limited
c. Joint arrangements When assessing whether a joint arrangement is in the form of a joint operation or a joint venture, the Corporation considers the arrangement’s structure, legal form and contractual terms as well as any other relevant factors. The Corporation has one joint arrangement: a 50.0 per cent ownership in the Totnes Natural Gas Storage Facility located in Saskatchewan, Canada. The joint arrangement is in the form of a joint operation, as the Corporation has the rights to the assets, and obligations for the liabilities, relating to the arrangement. The consolidated financial statements include the Corporation’s share of jointly controlled assets, incurred liabilities, revenue and expenses as well as any liabilities and expenses incurred directly in respect of its joint arrangement.
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