Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 108

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 108
---
 there were changes in estimates relating to asset impairment charges (reversals) (Note 7), useful lives (Note 19), decommissioning and other provisions (Note 24) and defined benefit obligation (Note 27). XV. Fair Value of Assets Acquired and Liabilities Assumed in Business Combination The fair value of assets acquired and liabilities assumed, including contingent consideration, is estimated based on information available at the date of acquisition. While Management uses best estimates and assumptions to accurately value assets acquired and liabilities assumed at the date of acquisition, as well as any contingent consideration, estimates are inherently uncertain and subject to refinement. Accounting for business combinations requires significant judgement, estimates and assumptions at the acquisition date. In developing estimates of fair values at the acquisition date, Management utilize a variety of factors including market data, market prices, capacity, historical and future expected cash flows, growth rates and discount rates. Information regarding business combinations has been included in Note 4.

| TransAlta Corporation |     | 2024 Integrated Report |     | F28 |

Notes to the Consolidated Financial Statements 3. Accounting Changes A. Current Accounting Changes Amendments to IAS 1 — Non-currentLiabilities with Covenants and Classification of Liabilities as Current or Non-current In October 2022, the IASB issued Non-currentLiabilities with Covenants, which amends IAS 1 Presentation of Financial Statements, to clarify how conditions with which an entity must comply within 12 months after the reporting period affect the classification of a liability. In January 2020, the IASB issued Classification of Liabilities as Current or Non-current,which amends IAS 1 Presentation of Financial Statements regarding the classification of liabilities as current or non-current,clarifying that contractual rights and conditions existing at the end of the reporting period are relevant in determining whether the Company has a right to defer settlement of a liability by at least 12 months. Additionally, the IASB clarified that the classification of a liability is unaffected by the likelihood that an entity will exercise its deferral right. The amendments are applied retrospectively, effective for annual periods beginning on or after Jan. 1, 2024, and were adopted by the Company on that date. The Company has an Investment Agreement whereby Brookfield Renewable Partners or its affiliates (collectively, Brookfield) invested $750 million in TransAlta through the purchase of exchangeable securities (Exchangeable Securities), which are exchangeable into an equity ownership interest in TransAlta’s Alberta hydro assets