Rogers 2015 Annual Report Download - page 114

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 13: EARNINGS PER SHARE
ACCOUNTING POLICY
We calculate basic earnings per share by dividing the net income
or loss attributable to our Class A and Class B shareholders by the
weighted average number of Class A and Class B shares
outstanding during the year.
We calculate diluted earnings per share by adjusting the net
income or loss attributable to Class A and Class B shareholders and
the weighted average number of Class A and Class B shares
outstanding for the effect of all dilutive potential common shares.
We use the treasury stock method for calculating diluted earnings
per share, which considers the impact of employee stock options
and other potentially dilutive instruments.
Options with tandem stock appreciation rights or cash payment
alternatives are accounted for as cash-settled awards. As these
awards can be exchanged for common shares of the Company,
they are considered potentially dilutive and are included in the
calculation of the Company’s diluted net earnings per share if they
have a dilutive impact in the period.
EXPLANATORY INFORMATION
Years ended December 31
(In millions of dollars, except per share
amounts)
2015 2014
Numerator (basic) – Net income for
the year 1,381 1,341
Denominator – Number of shares (in
millions):
Weighted average number of
shares outstanding – basic 515 515
Effect of dilutive securities (in millions):
Employee stock options and
restricted share units 22
Weighted average number of shares
outstanding – diluted 517 517
Earnings per share:
Basic $2.68 $2.60
Diluted $2.67 $2.56
In 2014, the accounting for stock-based compensation using the
equity-settled method was determined to be more dilutive than
using the cash-settled method. As a result, net income for 2014
was reduced by $15 million in the diluted earnings per share
calculation to account for these awards as if they were equity-
settled. There was no such impact in 2015.
A total of 1,107,344 options were out of the money for 2015
(2014 – 1,257,117). These options were excluded from the
calculation of the effect of dilutive securities because they were
anti-dilutive.
NOTE 14: ACCOUNTS RECEIVABLE
ACCOUNTING POLICY
We initially recognize accounts receivable on the date they
originate. We measure accounts receivable initially at fair value, and
subsequently at amortized cost, with changes recognized in net
income. We measure an impairment loss for accounts receivable as
the excess of the carrying amount over the present value of future
cash flows we expect to derive from it, if any. The difference is
allocated to an allowance for doubtful accounts and recognized as
alossinnetincome.
EXPLANATORY INFORMATION
As at December 31
(In millions of dollars) 2015 2014
Customer accounts receivable 1,329 1,307
Other accounts receivable 549 382
Allowance for doubtful accounts (86) (98)
Total accounts receivable 1,792 1,591
112 ROGERS COMMUNICATIONS INC. 2015 ANNUAL REPORT