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, 2025.
New standards, amendments and interpretations which are not yet effective for the period ended June 30, 2025, have not been applied in preparing these condensed consolidated financial statements. The Corporation is reviewing new and amended standards to determine the potential impact: Amendments to IFRS 9, Financial Instruments and IFRS 7 Financial Instruments: Disclosures - These amendments clarify the classification and measurement of financial instruments, including those with environmental, social, and governance (ESG) features, and introduce additional disclosure requirements. 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 and enhanced principles for aggregation and disaggregation of items.
4.
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 are 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.
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