3. Summary of changes in significant accounting policies (continued)
b. Future changes in accounting policies
The following new or amended accounting standards are not effective for the period ended September 30, 2020 and have not been applied in preparing these condensed consolidated financial statements:
Amendments to IFRS 10, Consolidated financial statements IAS 28, Investments in associates and joint ventures Amendments to IAS 37, Onerous contracts – Cost of fulfilling a contract Amendment to IAS 1, Classification of Liabilities as current or non-current IFRS 17, Insurance Contracts Amendments to IFRS 3, Updating a reference to the conceptual framework Amendments to IAS 16, Property, Plant and Equipment: Proceeds before intended use
The Corporation is currently analyzing these changes to determine the full impact upon adoption.
4. Natural gas in storage held for resale
As at September 30, 2020
As at March 31,
2020
(millions)
Cost
$
50
$
20
Revaluation to net realizable value
(1)
(7)
$
49
$
13
The net realizable value of natural gas in storage at the end of the quarter was $1 million below cost (March 31, 2020 - $7 million below cost). As at September 30, 2020, the Corporation expects that $48 million of the current inventory value could be sold or consumed within the next fiscal year and $1 million of the current inventory value could be sold or consumed after more than one fiscal year.
5. 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.
In measuring fair value, the Corporation classifies items according to the fair value hierarchy based on the amount of observable inputs.
Level 1 valuations use quoted prices (unadjusted) that are available in active markets for identical assets or liabilities as at the reporting date. Active markets are those in which transactions occur in sufficient frequency and volume to provide ongoing pricing information.
2020-21 Second Quarter Report
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