Rogers 2012 Annual Report Download - page 97

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
amount of the investment. Unrealized gains arising from
transactions with equity accounted investees are eliminated
against the investment to the extent of the Company’s interest
in the investee. Unrealized losses are eliminated the same as
unrealized gains, but only to the extent that there is no evidence
of impairment.
(ii) Investments in publicly traded and private companies:
Publicly traded investments where no control or significant
influence exists are classified as available-for-sale investments
and are recorded at fair value based on publicly quoted prices.
Investments in private companies where no control or significant
influence exists are also accounted for at fair value, which is
determined using well established market or asset based, or
projected income valuation techniques, which are applied
appropriately to each investment depending on its future
operating and profitability prospects. Changes in fair value of
these investments are recorded in OCI until such time as the
investments are disposed of or become impaired. Investments
are considered impaired when there is a significant or prolonged
decline in fair value below cost.
(w) Discontinued operations:
A discontinued operation is a component of the Company’s business,
the operations and cash flows of which can be clearly distinguished
from the rest of the Company and which:
(i) represents a separate major line of business;
(ii) is part of a single coordinated plan to dispose of a separate
major line of business; or
(iii) is a subsidiary acquired exclusively with a view to re-sale.
When an operation is classified as a discontinued operation, the
comparative statements of income and comprehensive income are re-
presented as if the operation had been discontinued from the start of
the comparative year.
(x) Recent accounting pronouncements:
The following accounting pronouncements are effective for the
Company’s interim and annual consolidated financial statements
commencing January 1, 2013. The Company is assessing the impact of
these pronouncements on its consolidated financial statements:
IFRS 10, Consolidated Financial Statements
In May 2011, the IASB issued IFRS 10, Consolidated Financial
Statements (“IFRS 10”). IFRS 10, which replaces the consolidation
requirements of SIC-12 Consolidation-Special Purpose Entities and
IAS 27 Consolidated and Separate Financial Statements, establishes
principles for the presentation and preparation of consolidated
financial statements when an entity controls one or more other
entities.
IFRS 11, Joint Arrangements
In May 2011, the IASB issued IFRS 11, Joint Arrangements (“IFRS 11”).
IFRS 11, which replaces the guidance in IAS 31, Interests in Joint
Ventures, provides for a more realistic reflection of joint
arrangements by focusing on the rights and obligations of the
arrangement, rather than its legal form (as is currently the case). The
standard addresses inconsistencies in the reporting of joint
arrangements by requiring interests in jointly controlled entities to be
accounted for using the equity method.
IFRS 12, Disclosure of Interests in Other Entities
In May 2011, the IASB issued IFRS 12, Disclosure of Interests in Other
Entities (“IFRS 12”). IFRS 12 establishes new and comprehensive
disclosure requirements for all forms of interests in other entities,
including subsidiaries, joint arrangements, associates and
unconsolidated structured entities.
IFRS 13, Fair Value Measurement
In May 2011, the IASB issued IFRS 13, Fair Value Measurement
(“IFRS 13”). IFRS 13 replaces the fair value guidance contained in
individual IFRS with a single source of fair value measurement
guidance. The standard also requires disclosures that enable users to
assess the methods and inputs used to develop fair value
measurements.
IAS 19, Employee Benefits
In June 2011, the IASB amended IAS 19, Employee Benefits (“IAS 19”).
This amendment eliminates the concept of return on plan assets and
interest cost (income) and replaces them with a net interest cost that
is calculated by multiplying the discount rate by the net liability
(asset). The amendment also eliminates the use of the “corridor”
approach and mandates all remeasurement impacts be recognized in
OCI. It also enhances the disclosure requirements, providing better
information about the characteristics of defined benefit plans and the
risk that entities are exposed to through participation in those plans.
The adoption of the amended standard will result in an increase in
pension expense of $7 million for the year ended December 31, 2012
upon retrospective application when the amended standard is
adopted beginning January 1, 2013.
IAS 27, Separate Financial Statements
In May 2011, the IASB amended IAS 27, Separate Financial Statements
(“IAS 27”). This amendment removes the requirements for
consolidated statements from IAS 27, and moves it over to IFRS 10,
Consolidated Financial Statements. The amendment mandates that
when a company prepares separate financial statements, investment
in subsidiaries, associates, and jointly controlled entities are to be
accounted for using either the cost method or in accordance with
IFRS 9, Financial Instruments. In addition, this amendment determines
the treatment for recognizing dividends, the treatment of certain
group reorganizations, and some disclosure requirements.
IAS 28, Investments in Associates and Joint Ventures
In May 2011, the IASB amended IAS 28, Investments in Associates and
Joint Ventures (“IAS 28”). This amendment requires any retained
portion of an investment in an associate or joint venture that has not
been classified as held for sale to be measured using the equity
method until disposal. After disposal, if the retained interest
continues to be an associate or joint venture, the amendment
requires it to continue to be accounted for under the equity method.
The amendment also disallows the remeasurement of any retained
interest in an investment upon the cessation of significant influence
or joint control.
The following accounting pronouncement is effective for the
Company’s interim and annual consolidated financial statements
commencing January 1, 2015. The Company is assessing the impact of
the pronouncement on its consolidated financial statements:
IFRS 9, Financial Instruments
In October 2010, the IASB issued IFRS 9, Financial Instruments
(“IFRS 9”). IFRS 9, which replaces IAS 39, Financial Instruments:
Recognition and Measurement, establishes principles for the financial
reporting of financial assets and financial liabilities that will present
relevant and useful information to users of financial statements for
their assessment of the amounts, timing and uncertainty of an entity’s
future cash flows.
2012 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 93