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72 ROGERS COMMUNICATIONS INC. 2008 ANNUAL REPORT
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
INTERNATIONAL FINANCIAL REPORTING STANDARDS (“IFRS”)
In 2006, the Canadian Accounting Standards Board (“AcSB”) pub-
lished a strategic plan that significantly affects financial reporting
requirements for Canadian public companies. The AcSB strategic
plan outlines the convergence of Canadian GAAP with IFRS over an
expected five-year transitional period.
In February 2008, the AcSB confirmed that IFRS will be mandatory
in Canada for profit-oriented publicly accountable entities for fiscal
periods beginning on or after January 1, 2011. Our first annual IFRS
financial statements will be for the year ending December 31, 2011
and will include the comparative period of 2010. Starting in the first
quarter of 2011, we will provide unaudited consolidated interim
financial information in accordance with IFRS including compara-
tive figures for 2010.
The table below illustrates key elements of our conversion plan,
our major milestones and current status. Our conversion plan is
organized in phases over time and by area. We have completed all
activities to date per our detailed project plan and expect to meet
all milestones through to completion of the conversion to IFRS.
We have allocated sufficient resources to our conversion project,
which include certain full-time employees in addition to contribu-
tions by other employees on a part-time or as needed basis. We
have completed the delivery of training to all employees with
responsibilities in the conversion process and our conversion plan
includes training for all other employees who will be impacted by
our conversion to IFRS.
Although we have completed preliminary assessments of account-
ing and reporting differences, impacts on systems and processes
and other areas of the business, we have not yet finalized these
assessments. As we finalize our determination of the significant
impacts on our financial reporting, including on our KPIs, systems
and processes, and other areas of our business, we intend to dis-
close such impacts in our future MD&As.
In the period leading up to the changeover, the AcSB will continue
to issue accounting standards that are converged with IFRS, thus
mitigating the impact of adopting IFRS at the changeover date.
The International Accounting Standards Board (“IASB”) will also
continue to issue new accounting standards during the conversion
period and, as a result, the final impact of IFRS on the Company’s
consolidated financial statements will only be measured once all
the IFRS applicable at the conversion date are known.
ACTIVITY MILESTONES STATUS
Financial reporting:
• Assessmentofaccountingandreport-
ing differences.
• SelectionofIFRSaccountingpolicies
and IFRS 1 elections.
• DevelopmentofIFRSnancialstate-
ment format, including disclosures.
• Quanticationofeffectsof
conversion.
Senior management and audit
committee approval for policy
recommendations and IFRS elections
during 2009.
Senior management and audit
committee approval on financial
statement format during 2010.
Final quantification of conversion
effects on 2010 comparative period
by Q1 2011.
Preliminary assessment of accounting
and reporting differences completed.
Selection of IFRS accounting policies
and IFRS 1 elections underway.
Systems and processes:
• Assessmentofimpactofchangeson
systems and processes.
• Implementationofanysystemandpro-
cess design changes including training
appropriate personnel.
• Documentationandtestingofinternal
controls over new systems and
processes.
Systems, process and internal control
changes implemented and training com-
plete in time for parallel run in 2010.
Testing of internal controls for 2010
comparatives completed by Q1 2011.
Preliminary assessment of required
changes completed.
Analysis of potential design solutions
underway.
Business:
• Assessmentofimpactsonallareasof
the business, including contractual
arrangements and implementation of
changes as necessary.
• Communicateconversionplanand
progress against it internally and
externally.
Contracts updated/renegotiated by end
of 2010.
Communication at all levels throughout
the conversion process.
Preliminary assessment of impacts on
other areas of the business completed.
Communication is ongoing.