Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 97

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 97
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-use assets and lease liabilities in the Consolidated Statements of Financial Position; |

| • |     | Recognizes depreciation of the                                                                                
 right-of-use assets and interest expense on lease liabilities in the Consolidated Statements of Earnings; and |

| • |     | Recognizes the principal repayments on lease liabilities as financing activities and interest       
 payments on lease liabilities as operating activities in the Consolidated Statements of Cash Flows. |

For short-term and low-valueleases, the Company recognizes the lease payments as operating expenses. Variable lease payments that do not depend on an index or a rate are not included in the measurement of the lease

| TransAlta Corporation |     | 2024 Integrated Report |     | F22 |

Notes to the Consolidated Financial Statements liability and the right-of-useasset and are recognized as an expense in the period in which the event or condition that triggers the payments occurs. Right-of-useassets are initially measured at an amount equal to the lease liability and adjusted for any payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset, or to restore the underlying asset or the site on which it is located, less any lease incentives received. Lease liabilities are initially measured at the present value of the lease payments that are not paid at commencement and discounted using the Company’s incremental borrowing rate or the rate implicit in the lease. The lease liability is remeasured when there is a change in future lease payments arising from a change in an index or rate, or if there is a change in the Company’s estimate or assessment of whether it will exercise an extension, termination or purchase option. A corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-useasset has been reduced to zero. The lease term includes periods covered by an option to extend if the Company is reasonably certain to exercise that option and periods covered by an option to terminate if the Company is reasonably certain not to exercise that option. Right-of-useassets are depreciated over the shorter period of either the lease term or the useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-useasset reflects that the Company expects to exercise the purchase option, the related right-of-useasset is depreciated over the useful life of the underlying asset. The Company has elected to apply the practical expedient that permits a lessee not to separate non-leasecomponents and