4. Natural gas in storage held for resale
As at June 30, 2016
As at March 31, 2016
(millions)
Cost
$
143
$
120
Revaluation to net realizable value
(23)
(34)
$
120
$
86
With the decline in natural gas market prices over recent years, the net realizable value of natural gas in storage at the end of the quarter was $23 million below cost (March 31, 2016 - $34 million below cost). As at June 30, 2016, the Corporation expected that $64 million of the current inventory value would be sold or consumed within the next year, and $56 million of the current inventory value would be sold or consumed after more than one year.
5. Financial and derivative instruments
As at June
As at March
30, 2016
31, 2016
Classifi- Fair Value Carrying cation Hierarchy Amount
Fair
Carrying Amount
Fair
(millions)
Value
Value
Financial and derivative assets Cash Trade and other receivables
FVTPL
n/a n/a
$
1
$
1
$
11
$
11
LAR
56
56
104 102
104 102
Debt retirement funds
FVTPL Level 2
107
107
Fair value of derivative instrument assets
FVTPL Level 2
9
9
11
11
Financial and derivative liabilities Short-term debt
OL OL OL OL
n/a n/a n/a
301 103
301 103
299 105
299 105
Trade and other payables
Dividends payable
-
-
21
21
Long-term debt
Level 2
970
1,167
970
1,099
Fair value of derivative instrument liabilities
FVTPL Level 2
64
64
109
109
Classification details: FVTPL - fair value through profit or loss LAR - loans and receivables OL - other liabilities
The fair value hierarchy is not applicable where the carrying amount approximates fair value due to the short-term nature of the financial instrument.
21
2016-17 FIRST QUARTER REPORT
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