Shaw 2011 Annual Report Download - page 129

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2011, 2010 and 2009
[all amounts in thousands of Canadian dollars except share and per share amounts]
21. 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 assets
The fair value of long-term receivables approximate their carrying value as they are
recorded at the net present values of their future cash flows, using an appropriate
discount rate.
(iv) Other current/non-current liabilities
The carrying value of the 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. The fair value of program rights payable,
estimated by discounting future cash flows, approximates their carrying value.
(v) 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 or at the time of a business acquisition. 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.
(vi) 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.
125