Shaw 2013 Annual Report Download - page 74

S
haw
C
ommunications Inc
.
N
O
TE
S
T
OCO
N
SO
LIDATED FINAN
C
IAL
S
TATEMENT
S
August 31, 2013 and 201
2
[all amounts in millions of Canadian dollars exce
p
t share and
p
er share amounts
]
(
iii
)
Deferred IRU revenue
P
re
p
a
y
ments rece
i
ved under
i
nde
f
eas
i
ble r
ig
ht to use
(“
IRU”
)
a
g
reements are amort
i
zed on
a
stra
i
ght-l
i
ne bas
i
s
i
nto
i
ncome over the term o
f
the agreement and
i
ncluded
i
n amort
i
zat
i
on o
f
property, plant and equipment, intangibles and other in the consolidated statements of income
.
C
as
h
Cash is presented net of outstanding cheques. When the amount of outstanding cheques and
t
he amount drawn under the Com
p
an
y
’s revolvin
g
term facilit
y
are
g
reater than the amount o
f
cash, the net amount
i
s
p
resented as bank
i
ndebtedness
.
Allowance for doubtful account
s
The
C
om
p
an
y
ma
i
nta
i
ns an allowance
f
or doubt
f
ul accounts
f
or the est
i
mated losses result
i
n
g
f
rom the inability of its customers to make required payments. In determining the allowance,
t
he Com
p
an
y
considers factors such as the number of da
y
s the account is
p
ast due, whether or
n
ot the customer cont
i
nues to rece
i
ve serv
i
ce, the
C
om
p
an
y
’s
p
ast collect
i
on h
i
stor
y
and
changes in business circumstances.
Inventorie
s
I
nventor
i
es
i
nclude subscr
i
ber equ
i
pment such as D
C
Ts and DTH rece
i
vers, wh
i
ch are hel
d
pending rental or sale at cost or at a subsidized price. When subscriber equipment is sold, the
e
q
u
ip
ment revenue and e
q
u
ip
ment costs are de
f
erred and amort
i
zed over two
y
ears. When the
subscr
i
ber equ
i
pment
i
s rented,
i
t
i
s trans
f
erred to property, plant and equ
i
pment and
amortized over its useful life. Inventories are determined on a first-in
,
first-out basis
,
and ar
e
stated at cost due to the eventual ca
pi
tal nature as e
i
ther an add
i
t
i
on to
p
ro
p
ert
y
,
p
lant an
d
equ
i
pment or de
f
erred equ
i
pment costs.
Pro
p
erty,
p
lant and e
q
ui
p
men
t
P
ro
p
ert
y
,
p
lant and e
q
u
ip
ment are recorded at
p
urchase cost. D
i
rect labour and other d
i
rectl
y
attributable costs incurred to construct new assets, upgrade existing assets and connect ne
w
subscribers are ca
p
italized and borrowin
g
costs on
q
ualif
y
in
g
assets for which the
commencement date
i
sonora
f
ter
S
e
p
tember
1
,
2010
are also ca
pi
tal
i
zed. As well, an
y
asse
t
removal and site restoration costs in connection with the retirement of assets are capitalized
.
R
e
p
airs and maintenance ex
p
enditures are char
g
ed to o
p
eratin
g
ex
p
ense as incurred.
Amort
i
zat
i
on
i
s recorded on a stra
ig
ht-l
i
ne bas
i
s over the est
i
mated use
f
ul l
i
ves o
f
assets a
s
f
ollows
:
Asset
Esti
m
ated usefu
ll
ife
C
able and telecommun
i
cat
i
ons d
i
str
i
but
i
on s
y
stem 5-
1
5
y
ears
Digital cable terminals and modems 2-7 year
s
S
atellite audio, video and data network equipment and DTH receivin
g
eq
u
ip
ment
2
-
10 y
ear
s
T
ransmitters, broadcasting and communication equipment 5-15 years
Buildings 15-40 year
s
Data
p
rocess
i
n
g3
-4
y
ear
s
Ot
h
er
3-20 year
s
7
0