Note 5 - Accounting Standards Issued But Not Yet Effective

3 Months Ended

Jun. 30, 2019

Statement Line Items [Line Items]

Disclosure of expected impact of initial application of new standards or interpretations [text block]

5. ACCOUNTING STANDARDS ISSUED BUT NOT YET EFFECTIVE

IFRIC Agenda Paper

11,

Physical Settlement of Contracts to Buy or Sell a Non-Financial Item (“Agenda Paper

11”

)

The IFRS Interpretations Committee (“IFRIC”) reached a decision on Agenda Paper

11

during its meeting on

March 5

to

6,

2019.

The decision was in respect to a request about how an entity applies IFRS

9

to particular contracts to buy or sell a non-financial item at a fixed price.

The Company has reviewed the agenda decision and determined that a change is required in its accounting policy related to contracts to buy or sell a non-financial item that can be settled net in cash or another financial instrument, or by exchanging financial instruments. These are contracts the Company enters into that are accounted for as derivatives at fair value through profit or loss but physically settled by the underlying non-financial item. The IFRIC concluded that IFRS

9

neither permits or requires an entity to reverse the accumulated gain or loss previously recognized on the derivative and recognize a corresponding adjustment to cost of goods sold or inventory when the contract is physically settled.

In its

December 2018

meeting, IASB confirmed its view that it expects companies to be entitled to sufficient time to implement changes in accounting policy that result from agenda decisions of the IFRIC. The Company is currently evaluating the impact of implementing the agenda decision on its consolidated financial statements, systems and processes. Given the nature of its current systems and processes and the volume of transactions affected, the Company determined it was

not

possible to affect the accounting change in time for its

June 30, 2019

reporting. The Company expects to implement the change retrospectively in fiscal

2020

year. While the impact has

not

been quantified, the Company expects there will be material movements between cost of sales and change in fair value of derivative instruments and other in Just Energy’s consolidated statement of loss and the value of gas in storage on the consolidated statement of financial position. There is

no

impact on the net income of the Company.