Shaw 2012 Annual Report Download - page 84

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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]
benefit plan assets and liabilities to be presented in the statement of other
comprehensive income and is required to be applied retrospectively (with certain
exemptions) for the annual period commencing September 1, 2013.
ŠIAS 1, Presentation of Financial Statements, was amended to require presentation of
items of other comprehensive income based on whether they may be reclassified to the
statement of income and is required to be applied retrospectively for the annual period
commencing September 1, 2012.
3. BUSINESS ACQUISITIONS AND DISCONTINUED OPERATIONS
Business acquisitions
2012
Television broadcasting businesses
$
Cash 21
Consideration for the equity interests held prior to the acquisition 9
30
Cumulative income from equity interests prior to acquisition 4
Gain on remeasurement of interests in equity investments 6
40
On May 31, 2012, the Company closed the acquisition of the partnership units of Mystery
Partnership (“Mystery”) and Men TV General Partnership (“The Cave”) not already owned by the
Company, for total consideration of $21. Prior to the acquisition, the Company held a 50%
interest in Mystery which was proportionately consolidated and a 49% interest in The Cave
which was accounted for under the equity method. The fair value of the previous ownership
interests in these specialty channels on the acquisition date was $19. The transaction is
accounted for using the acquisition method and as a result of remeasuring these equity
interests to fair value, the Company recorded a gain of $6 in the income statement. If the
acquisition had occurred on September 1, 2011, revenue and net income for the year would
have been approximately $12 and $2, respectively.
As part of the CRTC decisions approving the transaction, the Company is required to contribute
$2 in new benefits to the Canadian broadcasting system over the next seven years. The
contribution will be used to create new programming. The obligation has been recorded in the
income statement at fair value, being the discounted future cash flows using a 4% discount
rate.
80