Shaw 2014 Annual Report Download - page 120

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Shaw Communications Inc.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
August 31, 2014 and 2013
[all amounts in millions of Canadian dollars except share and per share amounts]
(ii) Investments and other assets and Other long-term assets
The fair value of publicly traded investments is determined by quoted market prices.
Investments in private entities which do not have quoted market prices in an active
market and whose fair value cannot be readily measured are carried at cost. No
published market exists for such investments. These equity investments have been made
as they are considered to have the potential to provide future benefit to the Company and
accordingly, the Company has no current intention to dispose of these investments in the
near term. The fair value of long-term receivables approximates their carrying value as
they are recorded at the net present values of their future cash flows, using an
appropriate discount rate.
(iii) Long-term debt
The carrying value of long-term debt is at amortized cost based on the initial fair value as
determined at the time of issuance. The fair value of publicly traded notes is based upon
current trading values. Other notes and debentures are valued based upon current
trading values for similar instruments.
(vi) Other long-term liabilities
The fair value of program rights payable, estimated by discounting future cash flows,
approximates their carrying value.
(v) Derivative financial instruments
The fair value of US currency forward purchase contracts is determined using an
estimated credit-adjusted mark-to-market valuation.
The carrying values and estimated fair values of derivative financial instruments, an investment
in a publicly traded company and long-term debt are as follows:
August 31, 2014 August 31, 2013
Carrying
value
Estimated
fair value
Carrying
value
Estimated
fair value
$$$$
Assets
Derivative financial instruments(2) ––33
Investment in publicly traded company(1) 77 ––
Liabilities
Long-term debt(1) 4,690 5,390 4,818 5,275
(1) Level 1 fair value – determined by quoted market prices.
(2) Level 2 fair value – determined by valuation techniques using inputs based on observable
market data, either directly or indirectly, other than quoted prices.
As at August 31, 2013, US currency forward purchase contracts qualified as hedging
instruments and were designated as cash flow hedges.
116