Shaw 2013 Annual Report Download - page 80

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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
]
The Company has a restricted share unit (“RSU”) plan for officers and employees of the
Com
p
an
y
. RSUs vest on the second anniversar
y
of the
g
rant date and com
p
ensation is
reco
g
n
i
zed on a stra
ig
ht-l
i
ne bas
i
s over the two
y
ear vest
i
n
gp
er
i
od. R
S
Us w
i
ll be settled
i
n cash
and the obligation for RSUs is measured at the end of each period at fair value using the Black-
Scholes o
p
tion
p
ricin
g
model and the number of outstandin
g
RSUs.
The Company has a deferred share unit (“DSU”) plan for its Board of Directors. Compensatio
n
cost is reco
g
nized immediatel
y
as DSUs vest when
g
ranted. DSUs will be settled in cash an
d
t
he obl
ig
at
i
on
i
s measured at the end o
f
each
p
er
i
od at
f
a
i
r value us
i
n
g
the Black-
S
choles
o
ption pricing model and the number of outstanding DSUs
.
The
C
om
p
an
y
has an em
p
lo
y
ee share
p
urchase
p
lan
(
the
“
E
S
PP”
)
under wh
i
ch el
igi
bl
e
employees may contribute to a maximum of 5% of their monthly base compensation. Th
e
Com
p
an
y
contributes an amount e
q
ual to 25% of the
p
artici
p
ant’s contributions
.
E
arn
i
ngs per s
h
are
B
asic earnings per share is based on net income attributable to equity shareholders adjusted for
d
ividends on
p
referred shares and is calculated usin
g
the wei
g
hted avera
g
e number of Class
A
S
hares and
C
lass B Non-Vot
i
n
gS
hares outstand
i
n
g
dur
i
n
g
the
p
er
i
od. D
i
luted earn
i
n
g
s
p
e
r
share is calculated by considering the effect of all potentially dilutive instruments. In
calculatin
g
diluted earnin
g
s
p
er share, an
yp
roceeds from the exercise of stock o
p
tions an
d
o
ther d
i
lut
i
ve
i
nstruments are assumed to be used to
p
urchase
C
lass B Non-Vot
i
n
gS
hares a
t
t
he average market price during the period
.
Guarantees
The
C
om
p
an
y
d
i
scloses
i
n
f
ormat
i
on about certa
i
nt
yp
es o
fg
uarantees that
i
t has
p
rov
i
ded,
including certain types of indemnities, without regard to whether it will have to make any
p
a
y
ments un
d
er t
h
e
g
uarantees.
E
st
i
mat
i
on uncerta
i
nty an
d
cr
i
t
i
ca
lj
u
d
gement
s
The preparation of consolidated financial statements in conformity with IFRS requires
m
ana
g
ement to make estimates and assum
p
tions that affect the re
p
orted amounts of assets
and l
i
ab
i
l
i
t
i
es and d
i
sclosure o
f
cont
i
n
g
ent assets and l
i
ab
i
l
i
t
i
es at the date o
f
the consol
i
dated
f
inancial statements and the reported amounts of revenues and expenses during the period.
Actual results could differ from those estimates and si
g
nificant chan
g
es in assum
p
tions coul
d
cause an
i
m
p
a
i
rment
i
n assets. The
f
ollow
i
n
g
re
q
u
i
re the most d
iffi
cult, com
p
lex or sub
j
ect
i
v
e
judgements which result from the need to make estimates about the effects of matters that ar
e
inherentl
y
uncertain
.
E
st
i
mat
i
on uncerta
i
nt
y
The following are key assumptions concerning the future and other key sources of estimation
u
ncertaint
y
that could im
p
act the carr
y
in
g
amount of assets and liabilities and results o
f
op
erat
i
ons
i
n
f
uture
p
er
i
ods
:
(i)
Allowance
f
or doubt
f
ul account
s
The Company is required to make an estimate of an appropriate allowance for doubtful
accounts on
i
ts rece
i
vables. The est
i
mated allowance re
q
u
i
red
i
s a matter o
fj
ud
g
ement and the
7
6