Shaw 2011 Annual Report Download - page 143

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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]
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 transaction would have been recorded at the fair value
of the shares in HomeStar Services Inc. This would have resulted in a gain on disposition
of the consideration the Company exchanged for its investment in Star Choice and an
increase in the acquisition cost for Star Choice.
(6) Gain on sale of cable systems
The gain on sale of cable systems determined under Canadian GAAP has been adjusted to
reflect the lower net book value of broadcast rights under US GAAP as a result of item
(1) adjustments.
Under Canadian GAAP, no gain was recorded in 1995 on an exchange of cable systems
with Rogers Communications Inc. on the basis that this was an exchange of similar
productive assets. Under US GAAP the gain net of applicable taxes is recorded and
amortization adjusted as a result of the increase in broadcast rights upon the recognition
of the gain.
(7) Fair value of derivatives
Certain derivatives that qualify for cash flow hedge accounting under Canadian GAAP do
not qualify for similar treatment for US GAAP.
(8) Subscriber connection fee revenue
Subscriber connection fee revenue is deferred and amortized under Canadian GAAP.
Under US GAAP, connection revenues are recognized immediately to the extent of related
costs, with any excess deferred and amortized.
(9) Employee benefit plans
Under US GAAP, the Company is required to recognize the funded status of defined
benefit pension and other post-retirement plans on the Consolidated Balance Sheet and to
recognize changes in the funded status in other comprehensive income (loss).
Under Canadian GAAP, the over or under funded status of such plans is not recognized on
the Consolidated Balance Sheet.
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