2. Basis of preparation (continued) 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) 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 amortization rates for intangible assets (Note 10) Useful lives and depreciation rates for property, plant and equipment (Note 11) Recoverable amount of non-financial assets (Note 11)
Estimated unearned customer capital contributions (Note 14) Estimated future cost of decommissioning liabilities (Note 15)
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. Certain comparative amounts in the consolidated statement of financial position have been reclassed to conform with the current year’s presentation (Note 23). a. Changes in accounting policies Effective April 1, 2016 the Corporation adopted the following amended IFRS on a prospective basis: IAS 1 Presentation of financial statements The adoption of this amended standard has resulted in enhanced disclosure within the consolidated financial statements for the fiscal year ended March 31, 2017.
b. Basis of consolidation The Corporation’s direct and indirect subsidiaries, which are wholly owned by SaskEnergy, are as follows:
Subsidiary
Principal Activity
Bayhurst Energy Services Corporation
Energy services company Natural gas storage company Natural gas storage company Natural gas transmission company
Bayhurst Gas Limited
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’s existing joint arrangements, which are identified below, are in the form of joint operations as the Corporation has the rights to the assets, and obligations for the liabilities, relating to the arrangements. 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 that the Corporation has incurred directly in respect of its joint arrangements.
Joint Arrangement
Operating Jurisdiction
Interest
Principal Activity
Kisbey Gas Gathering and Processing Facility
Saskatchewan, Canada Saskatchewan, Canada
50.0% Natural gas processing 50.0% Natural gas storage
Totnes Natural Gas Storage Facility
50
Consolidated Financial Statements
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