Shaw 2014 Annual Report Download - page 73

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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]
measured at either fair value or their proportionate share of the fair value of acquiree’s
identifiable assets. The Company determines the measurement basis on a transaction by
transaction basis. Subsequent to acquisition, the carrying amount of non-controlling interests is
increased or decreased for their share of changes in equity.
(ii) Joint operations
A joint operation is a type of joint arrangement whereby the parties that have joint control of the
arrangement have rights to the assets and obligations for the liabilities, relating to the joint
arrangement. Joint control is the contractually agreed sharing of control of an arrangement,
which exists only when decisions about the relevant activities require unanimous consent of the
parties sharing control. The consolidated financial statements include the Company’s
proportionate share of the assets, liabilities, revenues, and expenses of its interests in joint
operations.
The Company’s joint operations include a 33.33% interest in the Burrard Landing Lot 2
Holdings Partnership (the “Partnership”) and until January 1, 2014, 50% interest in Historia
and Series+ s.e.nc (“Historia and Series+”).
The Partnership owns and leases commercial space in Shaw Tower in Vancouver, BC, which is
the Company’s headquarters for its lower mainland operations. In classifying its 33.33%
interest in the Partnership as a joint operation, the Company considered the terms and
conditions of the partnership agreement and other facts and circumstances including the
primary purpose of Shaw Tower which is to provide lease space to the partners.
Historia and Series+ are two Canadian French-language specialty television channels. The
Company classified its 50% interest as a joint operation after considering the terms and
conditions of the partnership agreement and other facts and circumstances including the
significant obligations that arise with respect to the CRTC broadcasting licenses which are
required to operate the channels and which are held at the partner level.
Investments in associates and joint ventures
Associates are entities over which the Company has significant influence. Significant influence
is the power to participate in the operating and financial policies of the investee, but is not
control or joint control.
A joint venture is a type of joint arrangement whereby the parties that have joint control of the
arrangement have rights to the net assets of the joint arrangement. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions
about the relevant activities require unanimous consent of the parties sharing control.
Investments in associates and joint ventures are accounted for using the equity method.
Investments of this nature are recorded at original cost and adjusted periodically to recognize
the Company’s proportionate share of the associate’s or joint venture’s net income/loss and
other comprehensive income/loss after the date of investment, additional contributions made
and dividends received.
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