5. Trade and other receivables (continued) The change in the allowance for doubtful accounts in respect of trade and other receivables was as follows: (millions) 2017
2016
Balance, beginning of period
$
4 3
$
6 1
Provision Write-offs
(1)
(2)
Balance, end of period
$
6
$
5
6. Natural gas in storage held for resale (millions)
2017
2016
Cost
$ 120
$ 107
Revaluation to net realizable value
(34)
(21)
$ 86
$ 86
With the decline in natural gas market prices over recent years, the net realizable value of natural gas in storage as at March 31, 2017 was $21 million below cost (2016 – $34 million). As at March 31, 2017, the Corporation expects that $59 million of the current inventory value will be sold or consumed within the next fiscal year and $27 million of the current inventory value will be sold or consumed after more than one fiscal year.
7. Debt retirement funds (millions)
2017
2016
Balance, beginning of period
$ 93
$ 102
Installments Redemptions
12
9
(7)
(12)
Earnings
6
2 –
Change in fair value Balance, end of period
(2)
102
101
Less: Current portion of debt retirement funds
(10)
(7)
$ 92
$ 94
The investments held in debt retirement funds are primarily Federal and Provincial Government debt instruments. The average return on these investments was 2.3% for the period (2016 – 5.3%). As at March 31, 2017 approximately $9 million is required to be invested in debt retirement funds on an annual basis. 8. Financial and derivative instruments For recurring and non-recurring fair value measurements, the Corporation estimates the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the reporting date under current market conditions. This requires the Corporation to make certain assumptions, including the principal (or most advantageous) market, the most appropriate valuation technique and the most appropriate valuation premise. The Corporation’s own credit risk and the credit risk of the counterparty have been taken into account in determining the fair value of financial assets and liabilities, including derivative instruments.
58
Consolidated Financial Statements
Made with FlippingBook Ebook Creator