2004 Crown Investments Corporation of Saskatchewan Annual Report

More documents

Recommendations

Info

Notes to Consolidated Financial StatementsDecember 31, 20041. Summary of Significant Accounting Policies (continued)k) Other assets (continued)Customer accounts acquired are capitalized and amortized on a straight-line basis over their useful lifefrom the date of acquisition.The Corporation has assigned unamortized goodwill balances to reporting units and no longer recordsany goodwill amortization. The Corporation identifies goodwill impairment by comparing the fairvalue of its reporting units to their carrying amounts. Fair values of reporting units are calculated usingindustry specific valuation methods which include discounted cash flows, earnings multiples andmarket comparable approach. Goodwill is tested for impairment annually or more frequently if eventsor changes in circumstances indicate that the assets may be impaired. Any goodwill impairment ispresented as a charge against earnings in the year impairment is recognized.l) Income taxesThe Corporation uses the asset and liability method of accounting for income taxes. Current incometaxes are recognized as estimated income taxes payable for the current year. Future income tax assetsand liabilities consist of temporary differences between tax and accounting bases of assets and liabilitiesas well as the benefit of losses available to be carried forward to future years for tax purposes that arelikely to be realized. The effect on future tax assets and liabilities of a change in tax rates is recognizedas income in the period that includes the date of enactment or substantive enactment. A valuationallowance is recorded against any future income tax asset if it is more likely than not that the asset willnot be realized.m) Deferred revenue due within one yearCurrent deferred revenue primarily consists of insurance premiums. These premiums are taken intoincome over the life of the policy.n) Provision for unpaid insurance claimsThe provision for unpaid claims represents an estimate of the total cost of claims to the year-end date.Included in the estimate are reported claims, claims incurred but not reported and an estimate ofadjustment expenses to be incurred on these claims. The provision is calculated without discountingexcept for long-term disability claims. The estimates are necessarily subject to uncertainty and areselected from a range of possible outcomes. During the life of the claim, adjustments to the estimatesare made as additional information becomes available. The change in outstanding losses plus paidlosses is reported as claims incurred in the current period.o) Revenue recognitionRevenue from utility and other services is recognized when the services are delivered to customers.The estimate of services rendered but not billed is included in accounts receivable. Revenue from longdistance, wireless airtime and directory services are recognized based on usage or rate plans over theperiod the services are provided. Revenues from insurance premiums written are taken into incomeover the terms of the related policies. Revenue from sales of reconstituted and synthetic crude arerecorded on the basis of regular meter readings. Revenue from sales of other products is recognizedwhen goods are shipped and title has passed to the customer or based on the right to revenue pursuantto contracts with customers, tenants and clients.70
Notes to Consolidated Financial StatementsDecember 31, 20041. Summary of Significant Accounting Policies (continued)o) Revenue recognition (continued)Interest earned on long-term investments is recognized on the accrual basis except where uncertaintyexists as to ultimate collection. In cases where collectibility of interest is not reasonably assured, interestincome is recorded when it is received and accrued interest receivable is offset by deferred interestincome.p) Competitive gas salesWhere the Corporation purchases natural gas in the open market at a fixed purchase price andsimultaneously enters into agreements to sell this natural gas at a fixed selling price, the gain or loss isrecorded at the time the transaction is settled.In addition, the Corporation may enter into contracts that require either the physical delivery (sale) orreceipt (purchase) of natural gas in a future period. Contracts may be structured so that the settlementprice is determined in the future at the time of delivery or receipt. Changes in the value of the contractdue to a change in market prices up to the date of settlement are recorded as gains or losses in theperiod of change.q) Electrical trading salesElectricity trading revenues are reported on a gross basis unless the Corporation is acting in the capacityof an agent or broker, in which case revenues are recorded net of purchases. The Corporation actsas a principal in electricity trading transactions taking title to the electricity purchased for resale andassuming the risks and rewards of ownership. Therefore, electricity trading revenues are recorded on agross basis.r) Foreign exchange translationMonetary assets and liabilities denominated in a foreign currency are translated at the rate of exchangein effect at year end. Revenues, expenses and non-monetary items are translated at rates prevailing atthe transaction date. Exchange gains and losses are included in earnings in the current year.The financial statements of the Corporation’s self-sustaining foreign operations are translated using thecurrent rate method, under which all assets and liabilities are translated at the exchange rate prevailingat year end, and revenues and expenses at average exchange rates during the year.s) Derivative financial instrumentsDerivative financial instruments are used by the Corporation to hedge its exposure to market risksrelating to commodity price for natural gas and hogs, foreign currency exchange rates and interest rates.Gains and losses on forward contracts and cross currency swaps used to manage foreign exchange ratesare recognized on the same basis as the gains and losses on the hedged item. Gains or losses related tohedges of anticipated transactions are recognized in earnings or recorded as adjustments of carryingvalues when the hedged transaction occurs. Any premiums or discounts with respect to financialinvestment contracts are deferred and amortized to earnings over the contract period.71
Page 2 and 3:
2004 Financial HighlightsCrown Sect
Page 4 and 5:
Table Of Contents2004 HighlightsLet
Page 6 and 7:
Chair’s MessageSaskatchewan’s C
Page 8 and 9:
Corporate ProfileCIC is the financi
Page 10 and 11:
Corporate ProfileCIC ManagementThe
Page 12 and 13:
Corporate ProfileFinancial and Publ
Page 14 and 15:
Corporate ProfileCIC’s Holdings20
Page 16 and 17:
Corporate ProfileSASKATCHEWAN GOVER
Page 18 and 19:
Corporate ProfileSaskatchewan Telec
Page 21:
Policy and ProgramsUtility Bundle C
Page 24 and 25: Policy and ProgramsCommitment to Gr
Page 26: Policy and ProgramsCommitment to Yo
Page 30: GovernanceFor the purposes of this
Page 33 and 34: Strategic Direction and Performance
Page 41 and 42: Management’s Discussion and Analy
Page 43 and 44: MANAGEMENT’S DISCUSSION AND ANALY
Page 65: MANAGEMENT’S DISCUSSION AND ANALY
Page 68 and 69: Consolidated Statement of Financial
Page 70 and 71: Consolidated Statement of Cash Flow
Page 72 and 73: Notes to Consolidated Financial Sta
Page 96: Notes to Consolidated Financial Sta
Page 99 and 100: Non-Consolidated Statement of Finan
Page 101 and 102: Non-Consolidated Statement of Cash
Page 103 and 104: Notes to Non-Consolidated Financial
Page 105 and 106: Notes to Non-Consolidated Financial
Page 107: Notes to Non-Consolidated Financial
Page 110: Pat AtkinsonMinisterPrinted in Sask
show all

2004 Crown Investments Corporation of Saskatchewan Annual Report

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?