Shaw 2010 Annual Report Download - page 40

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• in net income on a systematic basis for
faster recognition, including immediate
recognition of all actuarial gains and
losses, or
• to recognize them in other
comprehensive income, as they occur.
The Company is currently reviewing the
impact of the accounting policy choice for
recognition of actuarial gains and losses.
Interests in Joint Ventures (IAS 31) Although IAS 31 currently permits the use
of proportionate consolidation for joint
venture interests, proposed changes are
expected to be finalized prior to transition
to require these interests to be accounted
for using the equity method.
Impairment of Assets (IAS 36) IAS 36 uses a one-step approach for the
identification and measurement of
impairment of assets. The carrying value
of assets is compared to the greater of its
fair value less costs to sell and value in use,
which is based on the net present value of
future cash flows. Impairment of assets,
other than goodwill, is reversed in a
subsequent period if circumstances
change such that the previously
determined impairment is reduced or
eliminated.
Provisions, Contingent Liabilities and
Contingent Assets (IAS 37)
IAS 37 uses a different threshold for
recognition of a contingent liability that
could impact the timing of when a
provision may be recorded.
Intangible Assets (IAS 38) IAS 38 prohibits the amortization of
indefinite-lived intangibles and
reinstatement of previous amortization is
required.
J. Known events, trends, risks and uncertainties
The Company is subject to a number of risks and uncertainties which could have a material adverse
effect on its future profitability. Included herein is a “Caution Concerning Forward-Looking
Statements” section which should be read in conjunction with this report.
The risks and uncertainties discussed below highlight the more important and relevant factors that
could significantly affect the Company’s operations. They do not represent an exhaustive list of all
potential issues that could affect the financial results of the Company. The principal risks include:
kCompetition and technological change, including change in regulatory risks
kInterest rate, foreign exchange, capital market and economic conditions risks
kContingencies
36
Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2010