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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
January 1,
2010 December 31,
2010
Consolidated statements of financial
position:
Cash and cash equivalents $ (5) $ –
Accounts receivable (21) (37)
Other current assets – (1)
Property, plant and equipment (50) (46)
Goodwill (7) (7)
Intangible assets (103) (150)
Investments 167 213
Other long-term assets 2 –
Deferred tax assets (3) –
Bank advances – (5)
Accounts payable and accrued liabilities 20 33
Other long-term liabilities – remove
deferred gain 15 11
Adjustment to retained earnings before
income taxes 15 11
Related income tax effect (10) (9)
Adjustment to retained earnings $ 5 $ 2
(g) Financial instruments – transaction costs:
The Company has applied IAS 39, Financial Instruments: Recognition
and Measurement (“IAS 39”), at January 1, 2010, which requires
directly attributable costs to be added to certain acquired financial
assets and liabilities and amortized to the consolidated statements of
income over the life of the asset or liability. Under previous Canadian
GAAP, these costs were expensed as incurred. Unamortized
transaction costs of $58 million related to the Company’s long-term
debt were adjusted upon transition. Additionally, unamortized
discounts recognized on long-term debt have been reclassified from
other long-term assets to conform with IFRS presentation
requirements.
The impact of the change is summarized as follows:
Year ended December 31, 2010
Consolidated statement of comprehensive income:
Finance costs – amortization $ 13
Finance costs – debt issuances (10)
Adjustment before income taxes $ 3
January 1,
2010 December 31,
2010
Consolidated statements of financial
position:
Other long-term assets – reclassify
unamortized discounts $ (9) $ (9)
Long-term debt – reclassify unamortized
discounts 9 9
Long-term debt – unamortized transaction
costs 58 55
Adjustment to retained earnings before
income taxes 58 55
Related income tax effect (16) (15)
Adjustment to retained earnings $ 42 $ 40
(h) Provisions:
IAS 37, Provisions, Contingent Liabilities and Contingent Assets
(“IAS 37”), requires separate disclosure of provisions on the face of
the consolidated statements of financial position and also requires
recognition of a provision for onerous contracts; that is any contract
where the costs to fulfill the contract exceed the benefits to be
received under the contract, neither of which were required under
previous Canadian GAAP. Therefore, upon transition, all provisions
were reclassified from accounts payable and accrued liabilities and
the Company recognized an onerous contract provision of
$29 million.
The impact of the changes is summarized as follows:
Year ended December 31, 2010
Consolidated statement of comprehensive income:
Operating costs $ (2)
Share of the income of associates and joint ventures
accounted for using the equity method 8
Adjustment before income taxes $ 6
January 1,
2010 December 31,
2010
Consolidated statements of financial
position:
Accounts payable and accrued liabilities $ 43 $ 48
Current portion of
provisions – reclassification (4) (12)
Current portion of provisions – onerous
contract (10) (9)
Provisions – reclassification (39) (36)
Provisions – onerous contract (19) (26)
Adjustment to retained earnings before
income taxes (29) (35)
Related income tax effect 10 8
Adjustment to retained earnings $ (19) $ (27)
(i) Financial instruments – investments:
IAS 39 requires that the Company measure at fair value its
investments in equity instruments that do not have a quoted market
price in an active market classified as available-for-sale. Under
previous Canadian GAAP, these investments were classified as
available-for-sale and measured at cost, as cost closely approximated
fair value.
The impact of this change is summarized as follows:
Year ended December 31, 2010
Consolidated statement of comprehensive income:
Increase in fair value of available-for-sale investments $ 2
Adjustment before income taxes $ 2
January 1,
2010 December 31,
2010
Consolidated statements of financial
position:
Investments $ 1 $ (1)
Available-for-sale equity reserve (1) 1
Adjustment to retained earnings $ – $ –
There is no impact on retained earnings at January 1, 2010 or
December 31, 2010 as a result of this change.
2011 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 97