Notes to the Consolidated Financial Statements (unaudited)
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. Level 2 valuations are based on inputs that are either directly or indirectly observable for the asset or liability as at the reporting date. Inputs include quoted market prices, time, volatility factors and broker quotations which can be substantially observed or corroborated in the marketplace.
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,
2025
2025
Fair Value Carrying Fair
Carrying Fair
(millions)
Classification Hierarchy Amount
Value Amount
Value
Financial and derivative assets Cash and cash equivalents Trade and other receivables
FVTPL
Level 1
$
2
$
2
$
2
$
2
AC
N/A
100 163
100 163
171 197
171 197
Debt retirement funds
FVOCI FVTPL
Level 2 Level 2
Fair value of derivative instruments
5
5
5
5
Financial and derivative liabilities Short-term debt
AC AC AC AC
N/A N/A N/A N/A
217 123
217 123
187 192
187 192
Trade and other payables
Dividends payable Long-term debt
4
4
16
16
1,861
1,668
1,862
1,726
Fair value of derivative instruments
FVTPL
Level 2
18
18
12
12
Classification details: FVTPL - fair value through profit or loss AC - amortized cost
FVOCI - fair value through other comprehensive income
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.
19
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