Shaw 2013 Annual Report Download - page 82

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
]
rate. The discount rate is the interest rate used to determine the present value of the futur
e
cash flows that is ex
p
ected will be needed to settle em
p
lo
y
ee benefit obli
g
ations. It is based on
t
he
yi
eld o
f
lon
g
-term, h
ig
h-
q
ual
i
t
y
cor
p
orate
fi
xed
i
ncome
i
nvestments closel
y
match
i
n
g
the
t
erm of the estimated future cash flows and is reviewed and adjusted as changes required
.
(
vi
)
Income taxe
s
The
C
om
p
an
yi
sre
q
u
i
red to est
i
mate
i
ncome taxes us
i
n
g
substant
i
vel
y
enacted tax rates an
d
laws that w
i
ll be
i
ne
ff
ect when the d
iff
erences are expected to reverse. In determ
i
n
i
ng the
m
easurement of tax uncertainties, the Company applies a probable weighted average
m
ethodolo
gy
. Real
i
zat
i
on o
f
de
f
erred
i
ncome tax assets
i
sde
p
endent on
g
enerat
i
n
g
su
ffi
c
i
ent
t
axable income during the period in which the temporary differences are deductible. Although
realization is not assured, management believes it is more likely than not that all recognized
d
e
f
erred
i
ncome tax assets w
i
ll be real
i
zed based on reversals o
f
de
f
erred
i
ncome tax l
i
ab
i
l
i
t
i
es
,
projected operating results and tax planning strategies available to the Company and its
subsidiaries
.
(
vii) Contin
g
encie
s
The
C
ompany
i
s sub
j
ect to var
i
ous cla
i
ms and cont
i
ngenc
i
es related to lawsu
i
ts, taxes an
d
commitments under contractual and other commercial obligations. Contingent losses are
reco
g
n
i
zed b
y
a char
g
eto
i
ncome when
i
t
i
sl
i
kel
y
that a
f
uture event w
i
ll con
fi
rm that an asse
t
h
as been
i
mpa
i
red or a l
i
ab
i
l
i
ty
i
ncurred at the date o
f
the
fi
nanc
i
al statements and the amoun
t
can be reasonably estimated. Significant changes in assumptions as to the likelihood and
est
i
mates o
f
the amount o
f
a loss could result
i
n reco
g
n
i
t
i
on o
f
add
i
t
i
onal l
i
ab
i
l
i
t
i
es
.
C
ritical
j
ud
g
ements
The following are critical judgements apart from those involving estimation
:
(
i
)
Determination of a CG
U
M
ana
g
ement’s
j
ud
g
ement
i
sre
q
u
i
red
i
n determ
i
n
i
n
g
the
C
om
p
an
y
’s cash
g
enerat
i
n
g
un
i
ts
f
o
r
t
he impairment assessment of its indefinite-life intangible assets. The CGUs have been
d
etermined considering operating activities and asset management and are consistent with the
C
om
p
an
y
’s re
p
ort
i
n
g
se
g
ments,
C
able,
S
atell
i
te and Med
i
a
.
(ii)
Broadcast r
i
ghts and l
i
censes and spectrum l
i
censes –
i
nde
fi
n
i
te-l
if
e assessment
The Company’s businesses are dependent upon broadcast licenses (or operate pursuant to a
n
exem
p
t
i
on order
)g
ranted and
i
ssued b
y
the
C
RT
C
. In add
i
t
i
on, the
C
om
p
an
y
holds AW
S
l
i
censes to operate a w
i
reless system
i
n
C
anada. Wh
i
le these l
i
censes must be renewed
f
ro
m
t
ime to time, the Company has never failed to do so. In addition, there are currently no legal
,
re
g
ulator
y
or com
p
et
i
t
i
ve
f
actors that l
i
m
i
t the use
f
ul l
i
ves o
f
these assets
.
Ado
p
tion of recent accountin
gp
ronouncement
s
The Company adopted the following standards and amendments effective September 1, 2012
.
(
i) Em
p
lo
y
ee Benefit
s
I
A
S19
,
E
m
p
lo
y
ee Bene
fi
t
s
(
amended
2011)
,el
i
m
i
nates the ex
i
st
i
n
g
o
p
t
i
on to de
f
er actuar
i
a
l
g
ains and losses and requires changes from the remeasurement of defined benefit plan asset
s
7
8