N-18Response to Undertakings - Redacted
58 passages
Purpose The purpose of this policy is to establish the accounting principles for the recognition, measurement, presentation, derecognition, and disclosure of accounts payable and accrued liabilities in accordance with International Financi...
AI summary This policy establishes accounting principles for recognizing, measuring, presenting, and disclosing accounts payable and accrued liabilities in line with IFRS. It ensures consistent treatment of obligations from goods and services received and supports accurate liability reporting.
Scope This policy applies to all trade and other payables and accrued liabilities arising in the ordinary course of business, including obligations for goods and services received but not yet settled or invoiced at the reporting date. It a...
AI summary This policy outlines the scope of trade and other payables and accrued liabilities in the ordinary course of business, covering obligations for goods and services received but not yet settled, and applies to liabilities in both functional and foreign currencies.
Recognition Trade payables are recognised when IESO Nova Scotia becomes obliged to make payment, typically upon receipt of goods or services and acceptance of the related invoice, or in accordance with the terms of the underlying contract....
AI summary The document outlines the recognition of trade payables and accrued liabilities by IESO Nova Scotia. Trade payables are recognized upon receipt of goods or services and invoice acceptance, while accrued liabilities are recognized for received goods or incurred obligations not yet invoiced, measured by the best estimate of settlement costs.
Initial measurement Trade and other payables and accrued liabilities that meet the definition of a financial liability are initially recognised at fair value. Where subsequently measured at amortised cost, directly attributable transaction...
AI summary The text discusses the initial recognition of trade and other payables and accrued liabilities as financial liabilities at fair value. It explains that when measured at amortized cost, directly attributable transaction costs are added to the initial carrying amount. Trade payables and accrued liabilities without a significant financing component are measured at the invoiced or estimated amount, which approximates fair value.
Subsequent measurement Trade and other payables and accrued liabilities are subsequently measured at amortised cost using the effective interest method. Due to their short-term nature, the carrying amounts generally approximate amortised c...
AI summary The document explains that trade and other payables and accrued liabilities are measured at amortised cost using the effective interest method, with their carrying amounts generally approximating amortised cost and fair value due to their short-term nature.
Significant financing component (where applicable) Where payment terms extend beyond normal credit terms and the arrangement contains a significant financing component, the liability is measured at the present value of future payments, wit...
AI summary The text discusses accounting treatment for liabilities with significant financing components, where the liability is measured at the present value of future payments, and the discount is recognized as finance costs over the liability's term.
Classification Trade and other payables and accrued liabilities are classified as current liabilities when they are expected to be settled in the normal operating cycle or within twelve months after the reporting date, or when IESO Nova Sc...
AI summary The document explains the classification of trade and other payables and accrued liabilities as current or non-current liabilities based on the expected settlement period and the right to defer payment for IESO Nova Scotia.
Offsetting Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position only when IESO Nova Scotia has a legally enforceable right to set off the recognised amounts and intends e...
AI summary The document discusses the offsetting of financial assets and liabilities, stating that they are presented as a net amount in the statement of financial position only when IESO Nova Scotia has a legally enforceable right to set off the amounts and intends to settle on a net basis or realize the asset and settle the liability simultaneously.
Foreign currency Payables and accruals denominated in foreign currencies are translated into the Group's functional currency at the closing exchange rate at the reporting date. Foreign exchange gains and losses arising on translation are r...
AI summary The document explains that payables and accruals in foreign currencies are translated into the Group's functional currency using the closing exchange rate at the reporting date, with resulting foreign exchange gains and losses recognized in profit or loss.
Relevant Accounting Standards - International Financial Reporting Standard 9 (IFRS 9) Financial Instruments - International Accounting Standard 1 (IAS 1) Presentation of Financial Statements
AI summary The document outlines the relevant accounting standards, specifically International Financial Reporting Standard 9 and International Accounting Standard 1, which are pertinent to financial reporting and presentation.
Definition Accounts receivable represents amounts due from customers for goods sold or services performed in the ordinary course of business. Accounts receivables are recognised when IESO Nova Scotia has an unconditional right to considera...
AI summary Accounts receivable refers to amounts owed by customers for goods or services provided by IESO Nova Scotia. These are recognized when the entity has an unconditional right to payment, typically after goods or services have been delivered as per the contract.
Initial Recognition and Measurement Accounts receivables are initially recognised at fair value. Trade receivables that do not contain a significant financing component, as defined in IFRS 15 – Revenue from Contracts with Customers, are me...
AI summary The text discusses the initial recognition and measurement of accounts receivables, specifying that they are recognized at fair value. Trade receivables without a significant financing component are measured at transaction price, while other receivables are measured at fair value plus directly attributable transaction costs, as per IFRS 15.
Subsequent Measurement Accounts receivables are subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Due to their short-term nature, the carrying amount of trade receiv...
AI summary The text discusses the subsequent measurement of accounts receivables, stating they are measured at amortized cost using the effective interest method, with an allowance for expected credit losses, and notes that their carrying amount approximates fair value due to their short-term nature.
Impairment of Accounts Receivable IESO Nova Scotia recognises a loss allowance for expected credit losses ("ECLs") on accounts receivable in accordance with IFRS 9 – Financial Instruments. The simplified approach is applied to trade receiv...
AI summary IESO Nova Scotia applies IFRS 9 to recognize expected credit losses on accounts receivable using a simplified approach. The assessment considers historical data and forward-looking economic conditions, and receivables are written off when recovery is not expected.
Derecognition Accounts receivables are derecognised when the contractual rights to the cash flows expire or are transferred, and the transfer qualifies for derecognition in accordance with IFRS 9.
AI summary The document explains that accounts receivables are derecognised under IFRS 9 when contractual rights to cash flows expire or are transferred and the transfer qualifies for derecognition.
Presentation and Disclosure Accounts receivables are presented in the statement of financial position as current assets unless settlement is expected beyond twelve months after the reporting date. Allowances for expected credit losses are...
AI summary The document outlines how accounts receivables are presented in financial statements, noting that they are classified as current assets unless settlement is expected beyond twelve months. Allowances for expected credit losses are deducted from the gross carrying amount of receivables, with relevant disclosures provided in the notes to the financial statements.
Definition of PP&E Property, Plant and Equipment are tangible assets that are held by IESO Nova Scotia for use in its operations, or for administrative purposes. Property, plant and equipment are recognized when it is probable that future...
AI summary The document defines Property, Plant, and Equipment (PP&E) as tangible assets held by IESO Nova Scotia for operational or administrative use, with examples including leasehold improvements, computer hardware, and construction in progress. These assets are not intended for resale and have a useful life exceeding one fiscal year.
Definition of Intangible Assets Intangible assets are identifiable non-monetary assets without physical substance. These assets are separable and arise from contractual or other legal rights. Intangible assets are recognized when it is pro...
AI summary Intangible assets are defined as identifiable non-monetary assets without physical substance, arising from contractual or legal rights, and recognized when future economic benefits are probable and the cost can be measured reliably.
Measurement Cash and cash equivalents are carried in the statement of financial position at amortised cost, which approximates their fair value due to their short-term nature.
AI summary The document explains that cash and cash equivalents are reported at amortised cost, which closely reflects their fair value because of their short-term nature.
Presentation Restricted cash, being cash balances that are not available for immediate use by the entity due to contractual, legal, or regulatory restrictions, is excluded from cash and cash equivalents and presented separately in the stat...
AI summary The document discusses the accounting treatment of restricted cash, cash equivalents, and foreign currency translations for the IESO Nova Scotia. It outlines how restricted cash is presented separately, the inclusion of bank overdrafts in cash equivalents, and the handling of foreign exchange gains and losses.
General Principles Employee benefits are recognized as an expense when the employee has rendered service in exchange for those benefits. A corresponding liability is recognized for amounts expected to be paid because of employee service, n...
AI summary The document outlines the accounting principle that employee benefits are recognized as an expense when services are rendered, with a corresponding liability recognized for expected future payments, net of any amounts already paid.
Short-Term Employee Benefits Paid Annual Leave Paid annual leave is classified as a short-term employee benefit. - The cost of paid annual leave is recognized as an expense as employees render service that increases their entitlement to fu...
AI summary The document outlines the accounting treatment of paid annual leave as a short-term employee benefit. It specifies that the cost is recognized as an expense when employees provide service, and a liability is recorded for unused leave entitlements at the reporting date, measured at the undiscounted expected payment amount.
Paid Sick Leave Paid sick leave is classified as a short-term employee benefit. • Sick leave benefits are recognized as an expense in the period in which the employee's absence occurs. - To the extent that sick leave benefits accumulate an...
AI summary Paid sick leave is recognized as an expense when an employee is absent. If sick leave accumulates and unused entitlements are carried forward, a liability is recognized for the expected future cost. The liability is measured at the undiscounted amount expected to be paid.
Post-Employment Benefits Defined Contribution Pension Plan - IESO Nova Scotia sponsors a registered defined contribution pension plan, which is classified as a post-employment benefit under IAS 19. - IESO Nova Scotia's obligation is limite...
AI summary IESO Nova Scotia sponsors a registered defined contribution pension plan under IAS 19. The obligation is limited to fixed contributions, with pension expenses recognized in profit or loss. Prepaid contributions may be recognized as assets, and IESO has no further obligations after contributions are made.
Relevant IFRS Standards - IAS 19 Employee Benefits - IAS 1 Presentation of Financial Statements - IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
AI summary The document outlines relevant IFRS standards, specifically IAS 19, IAS 1, and IAS 8, which pertain to employee benefits, financial statement presentation, and accounting policies, respectively.
Financial Assets - Recognition Financial assets are recognized when IESO Nova Scotia becomes a party to the contractual provisions of the instrument.
AI summary The document discusses the recognition of financial assets, stating that they are recognized when IESO Nova Scotia becomes a party to the contractual provisions of the instrument.
Classification and Measurement IESO Nova Scotia's financial assets consist of cash and trade accounts receivable. These assets meet the criteria for measurement at amortized cost, as they are held within a business model whose objective is...
AI summary IESO Nova Scotia's financial assets, including cash and trade accounts receivable, are measured at amortized cost. This is because they are held under a business model focused on collecting contractual cash flows, and their terms result in cash flows that are solely payments of principal and interest.
Impairment of Financial Assets IESO Nova Scotia recognizes a loss allowance for expected credit losses (ECLs) on trade accounts receivable in accordance with IFRS 9. - The simplified approach is applied, whereby lifetime expected credit lo...
AI summary IESO Nova Scotia applies a simplified approach under IFRS 9 to recognize lifetime expected credit losses on trade accounts receivable, based on historical credit loss experience and adjusted for forward-looking information. Receivables are written off when recovery is not reasonably expected.
Derecognition of Financial Assets Financial assets are derecognized when the contractual rights to the cash flows expire or when the financial asset is transferred and the transfer qualifies for derecognition under IFRS 9.
AI summary The document explains the conditions under which financial assets are derecognized, specifically when contractual rights to cash flows expire or when assets are transferred and meet the criteria under IFRS 9.
Derecognition of Financial Liabilities Financial liabilities are derecognized when the obligation is discharged, cancelled, or expires. Any difference between the carrying amount and the consideration paid is recognized in the Statement of...
AI summary The document explains that financial liabilities are derecognized when the obligation is discharged, cancelled, or expires, with any difference between the carrying amount and the consideration paid recognized in the Statement of Income.
Letter of Credit IESO Nova Scotia has issued a letter of credit in the ordinary course of business. - The letter of credit represents a financial guarantee contract under IFRS 9 only if it requires IESO Nova Scotia to make specified paymen...
AI summary IESO Nova Scotia has issued a letter of credit, which is treated as a financial guarantee contract under IFRS 9 if it requires specified payments. Otherwise, it is disclosed as a commitment if the likelihood of payment is remote. A liability is recognized if it becomes probable that payments will be required.
Foreign Currency Financial Instruments Financial assets and financial liabilities denominated in foreign currencies are translated into the IESO Nova Scotia's functional currency of Canadian dollars at the closing exchange rate at the repo...
AI summary Financial assets and liabilities in foreign currencies are translated into Canadian dollars using the closing exchange rate at the reporting date. Foreign exchange gains and losses are recognized in the Statement of Income.
Recognition and Initial Measurement Prepaid expenses are initially recognised at cost, which represents the amount of cash paid or payable at the time of recognition.
AI summary The text discusses the initial recognition of prepaid expenses at cost, which is the amount of cash paid or payable at the time of recognition.
Subsequent Measurement and Amortization Prepaid expenses are subsequently measured at cost less amounts expensed to profit or loss as the related goods or services are consumed. The prepaid balance is amortised on a systematic basis over t...
AI summary This section discusses the accounting treatment of prepaid expenses, stating that they are measured at cost less amounts expensed as the related goods or services are consumed. Prepaid expenses are amortized systematically over the period they relate to, in line with the expected consumption of economic benefits, and recognized within the appropriate expense category in profit or loss.
Current and Non-Current Classification Prepaid expenses are classified as current assets when the related goods or services are expected to be consumed within twelve months after the reporting date. Prepaid expenses relating to periods ext...
AI summary Prepaid expenses are classified as current assets if they are expected to be consumed within twelve months after the reporting date. If they extend beyond twelve months, they are classified as non-current assets, and this classification is reassessed at each reporting date.
Impairment Prepaid expenses are reviewed at each reporting date to assess whether there is any indication that the carrying amount may not be recoverable. Where indicators of impairment exist, the prepaid asset is written down to its recov...
AI summary The text discusses the review of prepaid expenses at each reporting date to determine if their carrying amount may not be recoverable. If impairment indicators exist, the asset is written down to its recoverable amount, and any impairment loss is recognized in profit or loss in accordance with IAS 36.
Purpose and Policy Statement The purpose of this policy is to establish a consistent framework for recognizing revenue earned by IESO Nova Scotia in accordance with International Financial Reporting Standards (IFRS). This policy addresses...
AI summary This policy establishes a consistent framework for recognizing revenue by IESO Nova Scotia in accordance with IFRS, covering government grants, regulated annual revenue requirements, and services provided to customers under the Standard Generator Interconnection Procedures.
Scope and Applicable Standards This policy applies to all sources of operating revenue earned by IESO Nova Scotia and is based primarily on International Financial Reporting Standard 15 (IFRS 15) Revenue from Contracts with Customers and I...
AI summary This policy outlines the revenue recognition standards for IESO Nova Scotia, primarily based on IFRS 15 and IAS 20. Revenue recognition is guided by economic substance rather than legal form when judgment is required.
Government Grants Government grant revenue is assistance provided by the government in return for compliance with specified conditions relating to operating activities, public interest mandates, or the delivery of system operator functions...
AI summary Government grants are recognized as revenue by IESO Nova Scotia under IAS 20, provided they meet specified conditions. Revenue is recognized systematically over the periods in which related costs are incurred. Grants received in advance are deferred as liabilities until conditions are satisfied and repayment obligations are resolved.
Annual Revenue Requirement The More Access to Energy Act establishes IESO Nova Scotia as a not-for-profit body corporate independent energy system operator. The costs to operate IESO Nova Scotia re to be recovered from market participants...
AI summary The More Access to Energy Act establishes IESO Nova Scotia as a not-for-profit entity, with its operational costs recovered through an annual revenue requirement regulated by the Nova Scotia Energy Board (NSEB). Revenue recognition follows IFRS 15 guidelines, with revenue constrained to amounts approved by the NSEB and recognized over the fiscal year.
Right-of-Use Assets and Lease Liabilities IESO Nova Scotia recognizes a right-of-use ("ROU") asset and a lease liability at the lease commencement date for most lease arrangements. The lease liability represents the present value of lease...
AI summary IESO Nova Scotia recognizes right-of-use assets and lease liabilities at lease commencement, with the lease liability representing the present value of future lease payments and the ROU asset representing the right to use the leased asset.
Identification of a Lease A contract is, or contains, a lease when it conveys the right to control the use of an identified asset for a period in exchange for consideration. In assessing whether a contract contains a lease, IESO Nova Scoti...
AI summary This section explains how IESO Nova Scotia identifies a lease by evaluating whether a contract conveys the right to control the use of an identified asset and obtain its economic benefits.
Lease Term The lease term is the non-cancellable period of a lease, together with periods covered by an option to extend the lease if IESO Nova Scotia is reasonably certain to exercise that option, and periods covered by an option to termi...
AI summary The lease term is defined as the non-cancellable period of a lease, including optional extension or termination periods if IESO Nova Scotia is reasonably certain to exercise or not exercise those options. The lease term is reassessed following significant events or changes in circumstances within IESO Nova Scotia's control.
Initial Measurement of Lease Liabilities At commencement, the lease liability is measured at the present value of lease payments that are not paid at that date. Lease payments include: - Fixed payments (including in-substance fixed payment...
AI summary The document outlines the initial measurement of lease liabilities under IFRS, specifying that lease liabilities are measured at the present value of future lease payments. It details the components of lease payments and the discounting method used based on the interest rate implicit in the lease or the incremental borrowing rate.
Initial Measurement of Right-of-Use Assets The ROU asset is initially measured at cost, which comprises: - The initial amount of the lease liability; - Any lease payments made at or before the commencement date, less any lease - incentives...
AI summary The initial measurement of a Right-of-Use (ROU) asset includes the lease liability, lease payments made before the commencement date, incentives received, initial direct costs, and estimated costs for dismantling, removing, or restoring the asset as required by the lease terms.
Subsequent Measurement of Lease Liabilities The lease liability is subsequently measured by: - Increasing the carrying amount to reflect interest on the lease liability, recognized in finance costs; and - Reducing the carrying amount to re...
AI summary The document outlines how lease liabilities are subsequently measured under IFRS 16. This includes adjusting the carrying amount for interest and lease payments, as well as remeasuring liabilities when future payments change, purchase options are reassessed, lease terms change, or residual value guarantees are adjusted. Remeasurements use a revised discount rate as required.
Subsequent Measurement of Right-of-Use Assets ROU assets are subsequently measured at cost less accumulated depreciation and accumulated impairment losses and adjusted for any remeasurement of the related lease liability. ROU assets are de...
AI summary ROU assets are measured at cost less accumulated depreciation and impairment losses, adjusted for lease liability remeasurement. Depreciation is on a straight-line basis over the lease term or the asset's useful life, depending on whether a purchase option is likely to be exercised.
Short-Term Leases and Leases of Low-Value Assets IESO Nova Scotia applies the recognition exemptions to: - Short-term leases (lease term of 12 months or less at commencement and without - a purchase option); and - Leases of low-value asset...
AI summary IESO Nova Scotia applies recognition exemptions for short-term leases (12 months or less) and leases of low-value assets, recognizing associated payments as expenses on a straight-line basis over the lease term.
Variable Lease Payments Variable lease payments that do not depend on an index or a rate are recognized in profit or loss in the period in which the event or condition that triggers those payments occurs.
AI summary The document discusses the accounting treatment of variable lease payments that are not tied to an index or rate, stating they should be recognized in profit or loss when the triggering event or condition occurs.
Lease Modifications A lease modification is accounted for as a separate lease when it increases the scope of the lease and the consideration increase by an amount commensurate with the stand-alone price for the increase in scope. Otherwise...
AI summary Lease modifications are accounted for as separate leases if they increase the scope of the lease and the consideration increase matches the stand-alone price for the increase. Otherwise, modifications are accounted for by remeasuring the lease liability using a revised discount rate and adjusting the ROU asset accordingly.
Presentation and Cash Flows ROU assets are presented within property, plant and equipment or as a separate line item in the statement of financial position. Lease liabilities are presented separately from other liabilities or disclosed in...
AI summary The document outlines how ROU assets and lease liabilities are presented in financial statements and how lease-related cash flows are classified in the statement of cash flows, including principal repayments, interest paid, and payments for short-term and low-value leases.
Control Activities Control activities are the business processes and procedures that are commonly referred to as an organization's internal controls. They may be preventative or detective in nature and may encompass a range of manual and a...
AI summary Control activities are internal processes and procedures that ensure proper management and oversight within an organization. IESO Nova Scotia has implemented several operational policies that outline these control activities.
Detective controls - Finance department monitors compliance with the policy to detect any inappropriate approvals, non-competitive purchases or budget overruns to enable corrective actions before issues escalate. - AP aging review Finance...
AI summary The finance department implements detective controls such as monitoring compliance with policies, conducting AP aging reviews, and performing spend vs. budget analyses to identify issues like inappropriate approvals, non-competitive purchases, or budget overruns and take corrective actions.
Preventive Controls - HR and CEO authorization for payroll changes such as new hires, terminations and pay changes. - Payroll system access is restricted by role to prevent unauthorized changes or processing. - Segregation between HR data...
AI summary The document outlines preventive and detective controls related to payroll management, including HR and CEO authorization for changes, restricted system access, segregation of duties, and variance analysis against budgets to prevent unauthorized spending or errors.
Cash & Treasury Procedures Procedures for bank payments to ensure accuracy and safeguard IESO assets. Preventive controls - Dual authorization for bank payments as mandated by Board resolution and system enforced. Prevents a single employe...
AI summary The document outlines procedures for managing cash and treasury operations at IESO, including preventive controls like dual authorization and restricted system access, detective controls such as monthly reconciliations and cash flow monitoring, to ensure accuracy and safeguard assets.
Financial Close & Reporting Procedures Procedures in place to standardize the financial reporting structures and allow for the organized record keeping required for effective oversight.
AI summary The document outlines procedures to standardize financial reporting structures and ensure organized record keeping for effective oversight.
Preventive controls - Standardized monthly close checklist and timetable to ensure financial - records are prepared in a complete and timely manner. - Documented accounting policies such as a prescribed accounting framework based on IFRS....
AI summary The text outlines preventive controls in financial processes, including standardized monthly close checklists, adherence to IFRS-based accounting policies, and IT controls to restrict unauthorized journal entry access, enhancing financial reporting reliability.
Detective Controls - Account reconciliations with independent review Finance procedure - Analytical review of financial statements versus budgets, planned activities and actual circumstances helps detect where financial reporting is incomp...
AI summary The text outlines detective controls related to financial reporting, including account reconciliations, analytical reviews of financial statements, period-over-period variance explanations, and external audits to ensure compliance with accounting standards.