SaskEnergy First Quarter Report - June 30, 2022

Notes to the Consolidated Financial Statements (unaudited)

As at June 30,

As at March 31,

2022

2022

Classifi- Fair Value Carrying Fair Carrying Fair cation Hierarchy Amount Value Amount Value

(millions)

Financial and derivative assets Cash Trade and other receivables

$

11 $

11 $

FVTPL

Level 1 Level 2 Level 2

2

$

2

132 149

132 149

AC

199 146

199 146

Debt retirement funds

FVOCI

Fair value of derivative instrument assets

113

113

FVTPL

Level 2

121

121

Financial and derivative liabilities Short-term debt

308 104

308 104

AC AC AC AC

Level 2 Level 2 Level 2 Level 2

337 124

337 124

Trade and other payables

6

6

Dividends payable Long-term debt

11

11

1,597 1,431

1,559 1,588

Fair value of derivative instrument liabilities

29

29

FVTPL

Level 2

36

36

Classification details:

AC - amortized cost

FVTPL - fair value through profit or loss

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.

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