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116 ROGERS COMMUNICATIONS INC. 2007 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(K) CONSOLIDATED STATEMENTS OF CASH FLOWS:
(i) Canadian GAAP permits the disclosure of a subtotal of the
amount of funds provided by operations before changes in
non-cash operating working capital items in the consolidated
statements of cash flows. United States GAAP does not permit
this subtotal to be included.
(ii) Canadian GAAP permits bank advances to be included in the
determination of cash and cash equivalents in the consolidated
statements of cash flows. United States GAAP requires that
bank advances be reported as financing cash flows. As a result,
under United States GAAP, the total decrease in cash and
cash equivalents in 2007 of $42 million would be nil and cash
used in financing activities would be increased by $42 million.
The total increase in cash and cash equivalents in 2006 in the
amount of $85 million would be nil and cash used in financing
activities would be decreased by $85 million.
In addition to the amounts disclosed above, under United States
GAAP, the net amount recognized in the consolidated balance
sheets related to the Company’s supplemental unfunded pension
benefits for certain executives was $24 million (2006 – $19 million).
The total accumulated other comprehensive loss associated with
the supplemental plan amounts to $8 million (2006 – $5 million), on
a pre-tax basis.
(N) RECENT UNITED STATES ACCOUNTING PRONOUNCEMENTS:
In September 2006, the FASB issued FASB Statement No. 157,
Fair Value Measurements. This new standard defines fair value,
establishes a framework for measuring fair value under generally
accepted accounting principles and expands disclosures about
fair value measurements. This new standard is effective for the
Company beginning January 1, 2008. The Company is currently
assessing the impact of this new standard.
(L) OTHER DISCLOSURES:
United States GAAP requires the Company to disclose accrued
liabilities, which is not required under Canadian GAAP. Accrued
liabilities included in accounts payable and accrued liabilities as
at December 31, 2007, were $1,659 million (2006 – $1,287 million). At
December 31, 2007, accrued liabilities in respect of PP&E totalled
$133 million (2006 – $153 million), accrued interest payable totalled
$87 million (2006 – $109 million), accrued liabilities related to payroll
totalled $179 million (2006 – $234 million), and CRTC commitments
totalled $2 million (2006 – $9 million).
(M) PENSIONS:
The following summarizes the additional disclosures required and
different pension-related amounts recognized or disclosed in the
Company’s accounts under United States GAAP:
In February 2007, the FASB issued FASB Statement No. 159, The
Fair Value Option for Financial Assets and Financial Liabilities.
This statement permits entities the option to measure financial
instruments at fair value, thereby achieving an offsetting effect
for accounting purposes for certain changes in fair value of
certain related assets and liabilities without having to apply hedge
accounting. This statement is effective for the Company beginning
January 1, 2008. The Company is currently assessing the impact of
this new standard on its consolidated financial statements.
2007 2006
Current service cost (employer portion) $ 29 $ 24
Interest cost 34 32
Expected return on plan assets (37) (33)
Amortization:
Transitional asset (10) (10)
Realized gains included in income 1 1
Net actuarial loss 7 10
Net periodic pension cost under Canadian and United States GAAP $ 24 $ 24
Accrued benefit asset under Canadian GAAP $ 39 $ 34
Accumulated other comprehensive loss under United States GAAP, on a pre-tax basis (115) (97)
Net amount recognized in the consolidated balance sheets under United States GAAP $ (76) $ (63)