Shaw 2010 Annual Report Download - page 120

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The estimated pension amount that will be amortized from accumulated other comprehensive loss
into income in 2011 includes an actuarial loss of $9,566 and past service costs of $5,776.
Areas of material difference between Canadian and US GAAP and their impact on the consolidated
financial statements are as follows:
(1) Amortization of intangible assets
Until September 1, 2001, under Canadian GAAP amounts allocated to broadcast rights were
amortized using an increasing charge method which commenced in 1992. Under US GAAP,
these intangibles were amortized on a straight-line basis over 40 years. Effective
September 1, 2001, broadcast rights are considered to have an indefinite life and are no
longer amortized under Canadian and US GAAP.
(2) Deferred charges and credits
The excess of equipment costs over equipment revenues are deferred and amortized under
Canadian GAAP. Under US GAAP, these costs are expensed as incurred.
For US GAAP, transaction costs, financing costs and proceeds on bond forward contracts
associated with the issuance of debt securities are recorded as deferred charges and deferred
credits and amortized to income on a straight-line basis over the period to maturity of the
related debt. Under Canadian GAAP, such amounts are recorded as part of the principal
balance of debt and amortized to income using the effective interest rate method.
(3) Business acquisition costs
Effective September 1, 2009, under US GAAP, acquisition related costs are recognized
separately from business combinations, generally as expenses. Under Canadian GAAP, CICA
Handbook Section 1581, acquisition related costs are included as part of the cost of the
purchase.
(4) Equity in loss of investee
The earnings of an investee determined under Canadian GAAP has been adjusted to reflect
US GAAP.
Under Canadian GAAP, the investment in Star Choice was accounted for using the cost
method until CRTC approval was received for the acquisition. When the Company received
CRTC approval, the amount determined under the cost method became the basis for the
purchase price allocation and equity accounting commenced. Under US GAAP, equity
accounting for the investment was applied retroactively to the date the Company first
acquired shares in Star Choice.
(5) Gain on sale of subsidiary
In 1997, the Company acquired a 54% interest in Star Choice in exchange for the shares of
HomeStar Services Inc., a wholly-owned subsidiary at that time. Under Canadian GAAP, the
acquisition of the investment in Star Choice was a non-monetary transaction that did not
result in the culmination of the earnings process, as it was an exchange of control over similar
productive assets. As a result, the carrying value of the Star Choice investment was recorded
at the book value of assets provided as consideration on the transaction. Under US GAAP, the
116
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]