Shaw 2012 Annual Report Download - page 119

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2012 and 2011
[all amounts in millions of Canadian dollars except share and per share amounts]
Specialty Channels
The Company holds interests in a number of specialty television channels which are subject to
either joint control or significant influence. The Company paid network fees of $6 (2011 –
$5) and provided uplink of television signals of $1 (2011 – $1) to these channels during the
year.
28. 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) Investment and other assets and Other long-term assets
The carrying value of investments and other assets approximates their fair value. The fair
value of long-term receivables approximates their carrying value as they are recorded at
the net present values of their future cash flows, using an appropriate discount rate.
(iii) Other current/non-current liabilities
The carrying value of the liability in respect of amended cross-currency interest rate
agreements, which fixed the settlement of the principal portion of the liability on
December 15, 2011, was at amortized cost based on an estimated mark-to-market
valuation at the date of amendment. The fair value of this liability was 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.
(iv) 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.
(v) 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.
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