Shaw 2010 Annual Report Download - page 109

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19. FINANCIAL INSTRUMENTS
Fair values
The fair value of financial instruments has been determined as follows:
(i) Current assets and current liabilities
The fair value of financial instruments included in current assets and current liabilities
approximates their carrying value due to their short-term nature.
(ii) Investments and other assets
The carrying value of investments and other assets approximates their fair value. Certain
private investments where market value is not readily determinable are carried at cost net of
write-downs.
(iii) Other long-term liabilities
The carrying value of the other long-term liability in respect of amended cross-currency
interest rate agreements, which fix the settlement of the principal portion of the liability on
December 15, 2011, is at amortized cost based on an estimated mark-to-market valuation at
the date of amendment. The fair value of this liability is determined using an estimated
mark-to-market valuation.
(iv) Long-term debt
The carrying value of long-term debt is at amortized cost based on the initial fair value as
determined at the time of issuance. The fair value of publicly traded notes is based upon
current trading values. Other notes and debentures are valued based upon current trading
values for similar instruments.
(v) Derivative financial instruments
The fair value of cross-currency interest rate exchange agreements and US currency forward
purchase contracts is determined using an estimated credit-adjusted mark-to-market
valuation.
105
Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2010, 2009 and 2008
[all amounts in thousands of Canadian dollars except share and per share amounts]