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ROGERS COMMUNICATIONS INC. 2007 ANNUAL REPORT 87
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(ii) Capital disclosures:
In 2006, the CICA issued Handbook Section 1535, Capital
Disclosures (“CICA 1535”). CICA 1535 requires that an entity
disclose information that enables users of its financial statements
to evaluate an entity’s objectives, policies and processes for
managing capital, including disclosures of any externally
imposed capital requirements and the consequences for non-
compliance. Disclosures required by the new standard will be
included in the Company’s interim and annual consolidated
financial statements commencing January 1, 2008.
(iii) Goodwill and intangible assets:
In 2008, the CICA issued Handbook Section 3064, Goodwill and
Intangible Assets (“CICA 3064”). CICA 3064, which replaces
Section 3062, Goodwill and Intangible Assets, and Section
3450, Research and Development Costs, establishes standards
for the recognition, measurement and disclosure of goodwill
and intangible assets. The provisions relating to the definition
and initial recognition of intangible assets, including
internally generated intangible assets, are equivalent to the
corresponding provisions of IFRS IAS 38, Intangible Assets.
This new standard is effective for the Company’s interim
and annual consolidated financial statements commencing
January 1, 2009. The Company is assessing the impact of the
new standard on its consolidated financial statements.
(R) USE OF ESTIMATES:
The preparation of financial statements requires management to
make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported
amounts of revenue and expenses during the year. Actual results
could differ from those estimates.
Key areas of estimation, where management has made difficult,
complex or subjective judgments, often as a result of matters
that are inherently uncertain, include the allowance for doubtful
accounts and certain accrued liabilities, the ability to use income
tax loss carryforwards and other future income tax assets and
liabilities, capitalization of internal labour and overhead, useful
lives of depreciable assets and intangible assets with finite
useful lives, discount rates and expected returns on plan assets
affecting pension expense and the deferred pension asset and
the recoverability of long-lived assets, goodwill and intangible
assets, which require estimates of future cash flows. For business
combinations, key areas of estimation and judgment include the
allocation of the purchase price and related integration and
severance costs.
Significant changes in the assumptions, including those with
respect to future business plans and cash flows, could materially
change the recorded carrying amounts.
(S) RECENT CANADIAN ACCOUNTING PRONOUNCEMENTS:
(i) Financial instruments:
In 2006, the CICA issued Handbook Section 3862, Financial
Instruments – Disclosures, and Handbook Section 3863,
Financial Instruments – Presentation. These standards enhance
existing disclosure requirements and place greater emphasis
on disclosures related to recognized and unrecognized
financial instruments and how those risks are managed.
Disclosures required by these standards will be included in
the Company’s interim and annual consolidated financial
statements commencing January 1, 2008.