Shaw 2014 Annual Report Download - page 35

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Shaw Communications Inc.
MANAGEMENT’S DISCUSSION AND ANALYSIS
August 31, 2014
including maintenance of satellite transponders and lease of premises in the normal course of
business. Significant changes in assumptions as to the likelihood and estimates of the amount
of a loss could result in recognition of additional liabilities.
G. Related party transactions
Related party transactions are reviewed by Shaw’s Corporate Governance and Nominating
Committee, comprised of independent directors. The following sets forth certain transactions in
which the Company is involved.
Corus
The Company and Corus are subject to common voting control. During the year, network,
advertising and programming fees were paid to various Corus subsidiaries. The Company
provided uplink of television signals, programming content, Internet services and lease of
circuits to various Corus subsidiaries. In addition, the Company provided Corus with television
advertising spots in return for radio and television advertising.
During 2013, the Company entered into a number of transactions with Corus to optimize its
portfolio of specialty channels. Shaw agreed to sell to Corus its 49% interest in ABC Spark and
50% interest in its two French-language channels, Historia and Series+. In addition, Corus
agreed to sell to Shaw its 20% interest in Food Network Canada. The ABC Spark and Food
Network Canada transactions closed during 2013 while Historia and Series+ closed in fiscal
2014.
Burrard Landing Lot 2 Holdings Partnership
The Company has a 33.33% interest in the Partnership. During the current year, the Company
paid the Partnership for lease of office space in Shaw Tower. Shaw Tower, located in
Vancouver, BC, is the Company’s headquarters for its lower mainland operations.
Specialty channels
The Company previously held interests in a number of specialty television channels which were
either subject to joint control or significant influence, including Historia and Series+. During
the current year the Company paid network fees to these channels.
Key management personnel and Board of Directors
Key management personnel consist of the most senior executive team and along with the Board
of Directors have the authority and responsibility for directing and controlling the activities of
the Company. In addition to compensation provided to key management personnel and the
Board of Directors for services rendered, the Company transacts with companies related to
certain Board members primarily for the purchase of remote control units, network
programming and installation of equipment.
H. New accounting standards
Shaw has adopted or will adopt a number of new accounting policies as a result of recent
changes in IFRS as issued by the IASB. The ensuing discussion provides additional information
as to the date that Shaw is or was required to adopt the new standards, the methods of
adoption permitted by the standards, the method chosen by Shaw, and the effect on the
financial statements as a result of adopting the new policies. The adoption or future adoption of
these accounting policies has not and is not expected to result in changes to the Company’s
current business practices.
31