Shaw 2013 Annual Report Download - page 76

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
]
Borrowin
g
cost
s
The Com
p
an
y
ca
p
italizes borrowin
g
costs on
q
ualif
y
in
g
assets, for which the commencemen
t
d
ate
i
sonora
f
ter
S
e
p
tember
1
,
2010
, that take more than one
y
ear to construct or develo
p
u
sing the Company’s weighted average cost of borrowing which approximates 6.5%.
I
mpa
i
rment
(
i) Goodwill and indefinite-life intangible
s
The Company tests goodwill and indefinite-life intangibles for impairment annually (as at
M
arch 1) and when events or changes in circumstances indicate that the carrying value may be
i
m
p
a
i
red. The recoverable amount o
f
each cash-
g
enerat
i
n
g
un
i
t
(“CG
U”
)i
s determ
i
ned base
d
o
n the h
i
gher o
f
the
CG
U’s
f
a
i
r value less costs to sell
(“
FVL
CS
”
)
and
i
ts value
i
n use
(“
VIU”
)
.A
CGU is the smallest identifiable group of assets that generate cash flows that are independent
of
the cash
i
n
f
lows
f
rom other assets or
g
rou
p
so
f
assets. The
C
om
p
an
y
’s cash
g
enerat
i
n
g
un
i
ts
are cons
i
stent w
i
th
i
ts report
i
ng segments,
C
able,
S
atell
i
te and Med
i
a. Where the recoverabl
e
amount of the CGU is less than its carrying amount, an impairment loss is recognized.
I
m
p
a
i
rment losses relat
i
n
g
to
g
oodw
i
ll cannot be reversed
i
n
f
uture
p
er
i
ods
.
(
ii
)
Non-financial assets with finite useful live
s
F
or non-financial assets, such as property, plant and equipment and finite-life intangibl
e
assets, an assessment
i
s made at each re
p
ort
i
n
g
date as to whether there
i
san
i
nd
i
cat
i
on tha
t
an asset may be
i
mpa
i
red. I
f
any
i
nd
i
cat
i
on ex
i
sts, the recoverable amount o
f
the asset
i
s
d
etermined based on the higher of FVLCS and VIU. Where the carrying amount of the asse
t
exceeds
i
ts recoverable amount, the asset
i
s cons
i
dered
i
m
p
a
i
red and wr
i
tten down to
i
ts
recoverable amount. Prev
i
ously recogn
i
zed
i
mpa
i
rment losses are rev
i
ewed
f
or poss
i
ble reversa
l
at each reporting date and all or a portion of the impairment reversed if the asset’s value ha
s
i
ncreased.
C
RT
C
bene
f
it obli
g
ation
s
The fair value of CRTC benefit obligations committed as part of business acquisitions are
i
n
i
t
i
all
y
recorded, on a d
i
scounted bas
i
s, at the
p
resent value o
f
amounts to be
p
a
i
d net o
f
an
y
expected
i
ncremental cash
i
n
f
lows. The obl
i
gat
i
on
i
s subsequently ad
j
usted
f
or the
i
ncurrence
o
f related expenditures, the passage of time and for revisions to the timing of the cash flows
.
C
han
g
es
i
n the obl
ig
at
i
on due to the
p
assa
g
eo
f
t
i
me are recorded as accret
i
on o
f
lon
g
-ter
m
l
i
ab
i
l
i
t
i
es and prov
i
s
i
ons
i
n the
i
ncome statement
.
Provision
s
P
rov
i
s
i
ons are reco
g
n
i
zed when the
C
om
p
an
y
has a
p
resent obl
ig
at
i
on
(
le
g
al or construct
i
ve
)
a
s
a result o
f
a past event,
i
t
i
s probable that an out
f
low o
f
resources embody
i
ng econom
ic
benefits will be required to settle the obligation and a reliable estimate can be made of th
e
amount o
f
the obl
ig
at
i
on. The t
i
m
i
n
g
or amount o
f
the out
f
low ma
y
st
i
ll be uncerta
i
n. Prov
i
s
i
on
s
are measured us
i
ng the best est
i
mate o
f
the expend
i
ture requ
i
red to settle the presen
t
o
bligation at the end of the reporting period, taking into account risks and uncertaintie
s
assoc
i
ated w
i
th the obl
ig
at
i
on. Prov
i
s
i
ons are d
i
scounted where the t
i
me value o
f
mone
yis
co
n
side
r
ed
m
ate
r
ia
l.
7
2