Rogers 2010 Annual Report Download - page 68

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
72 ROGERS COMMUNICATIONS INC. 2010 ANNUAL REPORT
U.S. GAAP DIFFERENCES
We prepare our financial statements in accordance with Canadian
GAAP. U.S. GAAP differs from Canadian GAAP in certain respects. The
areas of principal differences and their impact on our 2010 Audited
Consolidated Financial Statements are described in Note 25 to the 2010
Audited Consolidated Financial Statements. The significant differences
in accounting relate to:
• Differencesinbusinesscombinationsandconsolidationaccounting;
• GainonSaleofCableSystems;
• CapitalizedInterest;
• FinancialInstruments;
• Stock-BasedCompensation;
• Pensions;
• IncomeTaxes;and
• InstallationRevenuesandCosts.
Recent U.S. accounting pronouncements are also discussed in Note 25
to the 2010 Audited Consolidated Financial Statements.
6. ADDITIONAL FINANCIAL INFORMATION
RELATED PARTY TRANSACTIONS
We have entered into certain transactions in the normal course of
business with certain broadcasters in which we have an equity interest.
The amounts paid to these broadcasters are as follows:
Consolidated statement of comprehensive income:
(1) See the section entitled “Employee Benefits”.
(2) See the section entitled “Private Investments”.
(3) See the section entitled “Financial Instruments: Hedge Accounting”.
Year ended Decemeber 31, 2010
(In millions of dollars, except per share amounts) Canadian GAAP, as recorded Adjustments IFRS
Net income for the year $ 1,528 $ (26) $ 1,502
Other comprehensive income (loss):
Pension actuarial losses(1) – (80) (80)
Increase in fair value of available-for-sale investments(2) 104 (2) 102
Cash flow hedging derivative instruments(3) 134 6 140
Other comprehensive income before income taxes 238 (76) 162
Related income taxes (37) 20 (17)
201 (56) 145
Total comprehensive income $ 1,729 $ (82) $ 1,647
Years ended December 31,
(In millions of dollars) 2010 2009 %Chg
Fees paid to broadcasters accounted
for by the equity method $ 16 $ 16 –
Years ended December 31,
(In millions of dollars) 2010 2009 %Chg
Printing, legal services and commissions paid on premiums
for insurance coverage $ 39 $ 39 –
We have entered into certain transactions with companies, the partners
or senior officers of which are Directors of our Company and/or its
subsidiary companies. Total amounts paid to these related parties,
directly or indirectly, are as follows:
Years ended December 31,
(In millions of dollars) 2010 2009 %Chg
Charges to Rogers for business use of aircraft, net
of other adminstrative services $ – $ (1) (100)
We have entered into certain transactions with our controlling
shareholder and companies controlled by the controlling shareholder.
These transactions are subject to formal agreements approved by the
Audit Committee. Total amounts paid (received) by us to (from) these
related parties are as follows:
These transactions are measured at the exchange amount, being the
amount agreed to by the related parties and are reviewed by the Audit
Committee and are at market terms and conditions.
In January 2010, with the approval of the Board of Directors, we closed
an agreement to sell the Company’s aircraft to a private Rogers’ family
holding company for cash proceeds of $19 million (US $18 million). The
terms of the sale were negotiated by a Special Committee of the Board
of Directors comprised entirely of independent directors. The Special
Committee was advised by several independent parties knowledgeable
in aircraft valuations to ensure that the sale price was within a range
that was reflective of current market value.