Shaw 2013 Annual Report Download - page 78

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
]
recognized when management has reasonable assurance that the conditions of the governmen
t
p
ro
g
rams are met and accounted for as a reduction of related costs, whether ca
p
italized and
amort
i
zed or ex
p
ensed
i
n the
p
er
i
od the costs are
i
ncurred.
F
ore
i
gn currency trans
l
at
i
o
n
Transactions ori
g
inatin
g
in forei
g
n currencies are translated into Canadian dollars at the
exchan
g
e rate at the date o
f
the transact
i
on. Monetar
y
assets and l
i
ab
i
l
i
t
i
es are translated at the
period-end rate of exchange and non-monetary items are translated at historic exchange rates.
The net forei
g
n exchan
g
e loss reco
g
nized on the translation and settlement of current monetar
y
assets and liabilities was $3 (2012 – $nil) and is included in other losses.
Fi
nanc
i
a
li
nstruments ot
h
er t
h
an
d
er
i
vat
i
ve
s
F
inancial instruments have been classified as loans and receivables
,
assets available-for-sale
,
assets held-
f
or-trad
i
n
g
or
fi
nanc
i
al l
i
ab
i
l
i
t
i
es.
C
ash has been class
ifi
ed as held-
f
or-trad
i
n
g
and
is
recorded at fair value with any change in fair value immediately recognized in income (loss)
.
Other financial assets are classified as available-for-sale or as loans and receivables. Available
-
f
or-sale assets are carr
i
ed at
f
a
i
r value w
i
th chan
g
es
i
n
f
a
i
r value recorded
i
n other
comprehensive income (loss) until realized. Loans and receivables and financial liabilities are
carried at amortized cost. None of the Com
p
an
y
’s financial assets are classified as held-to
-
m
atur
i
t
y
and none o
fi
ts
fi
nanc
i
al l
i
ab
i
l
i
t
i
es are class
ifi
ed as held-
f
or-trad
i
n
g.
Fi
nance costs and d
i
scounts assoc
i
ated w
i
th the
i
ssuance o
f
debt secur
i
t
i
es are netted a
g
a
i
ns
t
t
he related debt instrument and amortized to income using the effective interest rate method.
Accordin
g
l
y
, lon
g
-term debt accretes over time to the
p
rinci
p
al amount that will be owin
g
a
t
m
atur
i
t
y.
Derivative financial instruments
The Com
p
an
y
uses derivative financial instruments, such as forei
g
n currenc
y
forward
p
urchase
contracts, to mana
g
er
i
sks
f
rom
f
luctuat
i
ons
i
n
f
ore
ig
n exchan
g
e rates. All der
i
vat
i
ve
fi
nanc
i
a
l
instruments are recorded at fair value in the statement of financial position. Where permissible,
t
he Com
p
an
y
accounts for these financial instruments as hed
g
es which ensures tha
t
counterbalanc
i
n
gg
a
i
ns and losses are reco
g
n
i
zed
i
n
i
ncome
i
n the same
p
er
i
od. W
i
th hed
g
e
accounting, changes in the fair value of derivative financial instruments designated as cash flow
h
ed
g
es are recorded in other com
p
rehensive income (loss) until the variabilit
y
of cash flows
relat
i
n
g
to the hed
g
ed asset or l
i
ab
i
l
i
t
yi
s reco
g
n
i
zed
i
n
i
ncome
(
loss
)
. When an ant
i
c
ip
ate
d
t
ransaction is subsequently recorded as a non-financial asset, the amounts recognized in othe
r
com
p
rehensive income (loss) are reclassified to the initial carr
y
in
g
amount of the related asset
.
W
here hed
g
e account
i
n
gi
s not
p
erm
i
ss
i
ble or der
i
vat
i
ves are not des
ig
nated
i
n a hed
gi
n
g
relationship, they are classified as held-for-trading and the changes in fair value are
immediatel
y
reco
g
nized in income (loss).
I
nstruments that have been entered into b
y
the Com
p
an
y
to hed
g
eex
p
osure to forei
g
n currenc
y
r
i
sk are rev
i
ewed on a re
g
ular bas
i
s to ensure the hed
g
es are st
i
ll e
ff
ect
i
ve and that hed
g
e
accounting continues to be appropriate.
74