Company: ENBSF
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0000895728-25-000006
Chunk: 54

Company: ENBRIDGE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 8
Chunk 54
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 and changes to industry conditions. Based on management’s assessment of qualitative factors, if it is determined that it is more likely than not that the fair value of the reporting unit is less than its carrying amount, a quantitative goodwill impairment assessment is performed. Management performed a qualitative goodwill impairment assessment as of April 1, 2024 and did not identify impairment indicators for the GT and GDS reporting units.

The principal considerations for our determination that performing procedures relating to the qualitative goodwill impairment assessment for the GT and GDS reporting units is a critical audit matter are the significant judgments required by management in assessing the drivers of fair value in the qualitative goodwill impairment assessment for the GT and GDS reporting units to determine whether further quantitative impairment testing is required. This led to a high degree of auditor judgment, effort and subjectivity in performing procedures related to management’s assessment of drivers of fair value in the qualitative goodwill impairment assessment for the GT and GDS reporting units with respect to changes to projected cash flows from operations and expected future capital expenditures as well as the impact of changes in discount rate for the GT reporting unit and changes to rate base multiple and forecasted rate base for the GDS reporting unit. In addition, the audit effort involved the use of professionals with specialized skills and knowledge.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s qualitative goodwill impairment assessment. These procedures also included, among others, evaluating the reasonableness of management’s qualitative goodwill impairment assessment for the GT and GDS reporting units by assessing the reasonableness of changes to (i) projected cash flows from operations and expected future capital expenditures for the GT reporting unit and (ii) the forecasted rate base for the GDS reporting unit by considering the current and past performance of the GT and GDS reporting units, external industry data, and evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating the reasonableness of management’s qualitative goodwill impairment assessment for the GT and GDS reporting units, by assessing the reasonableness of the impact of changes in (i) discount rate for the GT reporting unit and (ii) the rate base multiple for the GDS reporting unit.

/s/PricewaterhouseCoopers LLP

Chartered Professional Accountants

Calgary, Canada

February 14, 2025

We have served as the Company's auditor since 1949.

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ENBRIDGE INC.

CONS