Shaw 2015 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2015 Shaw annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 110

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110

Shaw Communications Inc.
Management’s Discussion and Analysis
August 31, 2015
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 2014, the Company closed the sale of its 50% interest in two French-language channels, Historia and Series+, to Corus.
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.
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.
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.
Adoption of recent accounting pronouncement
The adoption of the following standard effective September 1, 2014 had no impact on the Company’s consolidated financial
statements.
ŠIFRIC 21 Levies, provides guidance on when to recognize a financial liability imposed by a government, if the levy is
accounted for in accordance with IAS 37, Provisions, Contingent Liabilities and Contingent Assets, or where the timing
and amount of the levy is certain.
Standards, interpretations and amendments to standards issued but not yet effective
The Company has not yet adopted certain standards, interpretations and amendments that have been issued but are not yet
effective. The following pronouncements are being assessed to determine their impact on the Company’s results and financial
position.
ŠClarification of Acceptable Methods of Depreciation and Amortization (Amendments to IAS 16 Property, Plant and
Equipment and IAS 38 Intangible Assets) prohibits revenue from being used as a basis to depreciate property, plant and
equipment and significantly limits use of revenue-based amortization for intangible assets. The amendments are to be
applied prospectively for the annual period commencing September 1, 2016.
ŠIFRS 15 Revenue from Contracts with Customers, was issued in May 2014 and replaces IAS 11 Construction Contracts,
IAS 18 Revenue, IFRIC 13 Customer Loyalty Programs, IFRIC 15 Agreements for the Construction of Real Estate, IFRIC
18 Transfers of Assets from Customers and SIC-31 Revenue—Barter Transactions Involving Advertising Services. The
new standard requires revenue to be recognized to depict the transfer of promised goods or services to customers in an
amount that reflects the consideration expected to be received in exchange for those goods or services. The principles are
2015 Annual Report Shaw Communications Inc. 29