Shaw 2012 Annual Report Download - page 35

Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2012
a straight-line basis over the estimated average remaining service life of employees. As
part of the retrospective application of IAS 19, all vested past service costs have been
recognized in opening retained earnings at the transition date.
(iii) Income taxes
The expected manner of recovery of intangible assets with indefinite useful lives for the
purpose of calculating deferred income taxes is different under IFRS than Canadian
GAAP. This difference in inclusion rate results in a reduction in the deferred income tax
liability related to these assets at transition and also results in a decrease to goodwill and
deferred income tax liability and increase to non-controlling interests in respect of the
Media business acquisition in fiscal 2011.
Under IFRS, the Company applies a probable weighted average methodology in respect to
its determination of measurement of its tax uncertainties.
Income taxes reflect the tax effect of other IFRS transition adjustments.
Also, under IFRS, deferred income tax assets and liabilities are only classified as long
term.
(iv) Intangibles
Under IFRS, amortization of indefinite-life intangibles is prohibited. Upon transition,
amortization of broadcast rights and licenses that had been previously recorded under
Canadian GAAP has been reversed and recognized in opening retained earnings at the
date of transition.
Under Canadian GAAP, program rights were segregated between current and noncurrent in
the statement of financial position based on estimated time of usage. Under IFRS,
program rights are segregated between current and noncurrent based on expected life at
time of acquisition.
(v) Constructive obligation
Under IFRS, constructive obligations must be recognized when certain criteria are met.
These have been accrued at the transition date.
(vi) Provisions
IAS 37 Provisions, Contingent Liabilities and Contingent Assets requires separate
disclosure on the face of the statement of financial position. Under Canadian GAAP,
separate disclosure was not required, therefore on transition all provisions were
reclassified from accounts payable and accrued liabilities or other long-term liabilities.
Standards, interpretations and amendments to standards issued but not yet effective
The Company has not yet adopted certain standards, interpretations and amendments that have
been issued but are not yet effective. The following pronouncements are being assessed to
determine their impact on the Company’s results and financial position.
ŠIFRS 9, Financial Instruments: Classification and Measurement, is the first part of the
replacement of IAS 39 Financial Instruments and applies to the classification and
measurement of financial assets and financial liabilities as defined by IAS 39. It is
required to be applied retrospectively for the annual period commencing September 1,
2015.
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