Shaw 2010 Annual Report Download - page 35

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Corus Entertainment Inc. (“Corus”)
The Company and Corus are subject to common voting control. During the year, network, advertising
and programming fees were paid to various Corus subsidiaries. The Company provided cable system
distribution access, administrative services, uplinking of television signals and Internet services
and lease of circuits to various Corus subsidiaries. In addition, the Company provided Corus with
television advertising spots in return for radio and television advertising.
Burrard Landing Lot 2 Holdings Partnership
The Company has a 33.33% interest in the Partnership. During the current year, the Company paid
the Partnership for lease of office space in Shaw Tower. Shaw Tower, located in Vancouver, BC, is the
Company’s headquarters for its lower mainland operations.
CW Media
The Company exercised significant influence over CW Media with its 49.9% ownership as of May 3,
2010. Since May 2010, network fees were paid to CW Media. In addition, the Company provided
uplink of television signals to CW Media.
I. New accounting standards
Shaw has adopted or will adopt a number of new accounting policies as a result of recent changes in
Canadian accounting pronouncements. The ensuing discussion provides additional information as
to the date that Shaw is or was required to adopt the new standards, the methods of adoption
permitted by the standards, the method chosen by Shaw, and the effect on the financial statements
as a result of adopting the new policy. The adoption or future adoption of these accounting policies
has not and is not expected to result in changes to the Company’s current business practices.
The following policies were adopted in fiscal 2010:
i) Goodwill and intangible assets
In 2010, the Company adopted CICA Handbook Section 3064, “Goodwill and Intangible Assets”,
which replaces Sections 3062, “Goodwill and Other Intangible Assets”, and 3450, “Research and
Development Costs”. Section 3064 establishes standards for the recognition, measurement,
presentation and disclosure of goodwill and intangible assets. As a result, connection costs that
had been previously deferred and amortized, no longer meet the recognition criteria for intangible
assets. In addition, the new standard requires computer software, that is not an integral part of the
related hardware, to be classified as an intangible asset.
31
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2010