Rogers 2014 Annual Report Download - page 99

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
REVENUE RECOGNITION
We recognize revenue when we can estimate its amount, have delivered on our obligations within the revenue generating arrangements, and are
reasonably assured that we can collect it. Revenue is recorded net of discounts.
Source of revenue How we recognize it
Monthly subscriber fees for wireless airtime and data services, cable,
telephony and Internet services, network services, media
subscriptions and rental of equipment
• Record revenue as the service is provided
Revenue from roaming, long-distance and other optional or non-
subscription services, pay-per-use services and other sales of
products
• Record revenue as the service is provided or product is
delivered
Revenue from the sale of wireless and cable equipment • Record revenue when the equipment is delivered and accepted
by the independent dealer or subscriber in a direct sales channel
Equipment subsidies related to providing equipment to new and
existing subscribers
• Record a reduction of equipment revenues when the equipment
is activated
Installation fees charged to subscribers in Cable and Business
Solutions
• These fees do not meet the criteria as a separate unit of
accounting
• In Cable, we defer and amortize these fees over the related
service period, which is approximately three years
• In Business Solutions we defer and amortize fees over the length
of the customer contract
Activation fees charged to subscribers in Wireless • These fees do not meet the criteria as a separate unit of
accounting
• We record these fees as part of equipment revenue
Advertising revenue • Record revenue when the advertising airs on our radio or
television stations, is featured in our publications or displayed on
our digital properties
Monthly subscription revenues received by television stations for
subscriptions from cable and satellite providers
• Record revenue when the services are delivered to cable and
satellite providers’ subscribers
Toronto Blue Jays’ revenue from home game admission and
concessions
• Recognize revenue when the related games are played during
the baseball season and when goods are sold
Toronto Blue Jays’ revenue from the Major League Baseball
Revenue Sharing Agreement which redistributes funds between
member clubs based on each club’s relative revenues
• Recognize revenue when the amount can be determined
Revenue from Toronto Blue Jays, radio and television broadcast
agreements
• Record revenue at the time the related games are aired
Revenue from sublicensing of program rights • Record revenue over the course of the applicable season
Awards granted to customers through customer loyalty programs,
which are considered a separately identifiable component of the
sales transactions
• Estimate the portion of the original sale to allocate to the award
credit based on the fair value of the future goods and services
that can be obtained when the credit is redeemed
• Defer the allocated amount until the awards are redeemed by
the customer and we provide the goods or services
• Recognize revenue based on the redemption of award credits
relative to the award credits that we expect to be redeemed
Interest income on credit card receivables • Record revenue as earned (i.e.- upon the passage of time) using
the effective interest method
2014 ANNUAL REPORT ROGERS COMMUNICATIONS INC. 95