Notes to the Condensed Consolidated Financial Statements (unaudited)
Level 3 inputs are unobservable for the particular assets and liabilities as at the reporting date. The Corporation did not classify any of its fair value measurements within Level 3.
As at June 30,
As at March 31
2021
2021
Classifi- Fair Value Carrying Fair Carrying Fair cation Hierarchy Amount Value Amount Value
(millions)
(audited)
Financial and derivative assets Cash Trade and other receivables
$
$
1
1
$
-
$
-
FVTPL
Level 1 Level 2 Level 2
119 149
119 149
165 136
165 136
AC
Debt retirement funds
FVOCI
Fair value of derivative instrument assets
39
39
17
17
Level 2
FVTPL
Financial and derivative liabilities Short-term debt
225
225
264 116
264 116
Level 2 Level 2 Level 2 Level 2
AC AC AC AC
87
87
Trade and other payables
4
4
7
7
Dividends payable Long-term debt
1,535
1,693
1,485
1,622
Fair value of derivative instrument liabilities
15
15
Level 2
8
8
FVTPL
Classification details:
AC - amortized cost
The fair value of debt retirement funds is determined by Saskatchewan’s Ministry of Finance using a market approach with information provided by investment dealers. To the extent possible, valuations reflect indicative secondary pricing for these securities. In all other circumstances, valuations are determined with reference to similar actively traded instruments. The fair value of natural gas derivative instruments is determined using a market approach. The Corporation obtains quoted market prices from sources such as the Canadian Gas Price Reporter and the Natural Gas Exchange, independent price publications and over-the-counter broker quotes. The fair value of long-term debt is determined for disclosure purposes only using an income approach. Fair values are estimated using the present value of future cash flows discounted at the market rate of interest for the equivalent Province of Saskatchewan debt instruments. Notional values are an approximation of future undiscounted net cash flows. For physical natural gas contracts, the notional value is based on the contract price. Where contract prices are referenced to an index price that has not yet been fixed, the market price is used to estimate the contract price.
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