Notes to the Consolidated Financial Statements (unaudited)
The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. The estimates and assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised as well as any future periods affected.
Information about critical judgments in applying accounting policies that have a material effect on the amounts recognized in the condensed consolidated financial statements include:
Revenue recognition related to unbilled revenue Existence of decommissioning liabilities Designation of own-use derivative contracts (Note 9)
Information about significant management estimates and assumptions that have a risk of resulting in a significant adjustment within the next financial period include:
Estimated unbilled revenue Expected credit losses
Net realizable value of natural gas in storage held for resale Fair value of financial and derivative instruments (Note 4) Useful lives and depreciation rates for right-of-use (ROU) assets Useful lives and amortization rates for intangible assets Useful lives and depreciation rates for property, plant and equipment (Note 6) Recoverable amount of non-financial assets (Note 6) Estimated lease liability (Note 7)
Estimated unearned customer capital contributions Estimated future cost of decommissioning liabilities
3. Material Accounting Policy Information Accounting policies applied by the Corporation and its subsidiaries to the condensed consolidated financial statements are consistent with those applied to the consolidated financial statements prepared for the year ended March 31, 2026, unless otherwise noted. a. New accounting standards and amendments adopted
The Corporation adopted the following amendments effective April 1, 2026:
Amendments to IFRS 9, Financial Instruments , and IFRS 7, Financial Instruments: Disclosures Effective April 1, 2026, the Corporation adopted amendments to IFRS 9, Financial Instruments and IFRS 7, Financial Instruments: Disclosures, relating to the classification and measurement of financial instruments. The amendments were applied prospectively, without restatement of comparative periods, in accordance with the transitional provisions. Adoption of the amendments resulted in a change to the Company’s accounting policy for the derecognition of trade payables, whereby derecognition occurs upon settlement through the counterparty’s bank. On transition, accounts payable and cash and cash equivalents were each higher by $2 million as at April 1, 2026, with the adjustment reflected in the condensed consolidated statement of cash flows for the three months ended June 30, 2026.
The Corporation also adopted other amendments to IFRS Accounting Standards that became effective April 1, 2026; however, these amendments did not have a material impact on the Corporation's consolidated financial statements.
b. New standards and amendments not yet effective
IFRS 18, Presentation and Disclosure in Financial Statements IFRS 18 introduces new requirements for the presentation and disclosure of financial statements, including the introduction of new subtotals in the statement of profit or loss, enhanced principles for aggregation and disaggregation of items, and disclosure of management-defined performance measures.
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