Shaw 2011 Annual Report Download - page 35

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2011
Specialty Channels
The Company has interests in a number of specialty television channels which are either
subject to joint control or significant influence, including Historia, Series+, Mystery, Dusk, and
The Cave. During the current year the Company paid network fees and provided uplink of
television signals to these channels.
CW Media
From May 3, 2010 to October 27, 2010 the Company exercised significant influence over CW
Media with its 49.9% ownership. During this period network fees were paid to CW Media. In
addition, the Company provided uplink of television signals to CW Media.
H. 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 2011:
Business combinations
Effective September 1, 2010, the Company early adopted CICA Handbook Section 1582
“Business Combinations”, which replaces Section 1581 “Business Combinations”. The
differences which arise from the new accounting standard relate to details in applying the
acquisition method. The significant changes that result include (i) a change in the
measurement date for equity instruments issued by the acquirer from a few days before and
after the announcement date to the acquisition date, (ii) contingent consideration is recognized
at fair value and subsequently remeasured at each reporting date until settled, (iii) future
adjustments to income tax estimates are recorded in income whereas previously, certain
changes were recorded in goodwill, (iv) acquisition related costs, other than costs to issue debt
or equity instruments, and acquisition related restructuring costs must be expensed, (v) for
business combinations completed in stages, identifiable net assets are recognized at fair value
when control is obtained and a gain or loss is recognized for the difference in fair value and
carrying value of the previously held equity interests, (vi) the fair value of identifiable assets
and liabilities attributable to non-controlling interests must be recognized, and
(vii) non-controlling interests are recorded at either fair value or their proportionate share of the
fair value of identifiable net assets acquired.
Consolidated financial statements and non-controlling interests
Effective September 1, 2010, the Company early adopted CICA Handbook Section 1601
“Consolidated Financial Statements” and Section 1602 “Non-controlling Interests” which
replace Section 1600 “Consolidated Financial Statements”. The new standards provide
guidance for the preparation of financial statements and accounting for a non-controlling
interest in a subsidiary in consolidated financial statements subsequent to a business
31