Telus 2010 Annual Report Download - page 92

88 . TELUS 2010 annual report
Key activity Milestones (expected timeframes) Status and comments
Control environment
.Internal control over financial
reporting
Approval of initial IFRS 1 optional exemption
and accounting policy choices
Senior management approval received for initial
elections and policy choices obtained in 2009.
Audit Committee review of management’s initial
elections and policy choices, and Board of Directors’
approval obtained in 2009.
Progress reviews by senior management
and Audit Committee
Review by senior management of implementation
progress, impacts of outstanding IFRS exposure
drafts, and quantification efforts in April, July and
October 2010, and January 2011.
Progress presented at Audit Committee meetings
in May, August and November 2010, and in
February 2011. Quantified results were reviewed
with the Audit Committee in July 2010.
Testing of controls for 2010 comparatives Activities commenced in the first quarter of 2010
and continued during the year
.Disclosure controls and procedures Review and sign-off conversion effects
on fiscal 2010
.Review and approval by senior management
.Review by Audit Committee and approval
by the Board of Directors
Approval of IFRS disclosures in third quarter
MD&A, including quantification of impacts on key
line items, received in October 2010.
First quarter of 2011:
.Approval of fiscal 2010 IFRS disclosures
in annual MD&A
.Senior management approval of supplementary
IFRS disclosures.
December 2010
.Board of Directors’ approval of the Company’s
2011 IFRS-based budget
.Senior management approval of 2011 public
annual targets under IFRS
.Publicly issue final guidance for fiscal 2010
according to Canadian GAAP together with
2011 annual targets according to IFRS.
The Company continued its long-standing practice
of releasing annual targets and key assumptions
for the upcoming year in December and providing
final guidance for the current year.
IFRS targets for 2011 and final Canadian GAAP
guidance for 2010 were released on December 14,
2010, followed by an investor call and webcast.
Revenues in the Canadian telecom industry grew by an estimated
2% in 2010, to approximately $42 billion, with wireless and data services
continuing to act as growth engines for the sector. Offsetting this growth
was continued wireline industry weakness in traditional voice service
revenue, as well as declining long distance revenues. Bell Canada and its
affiliated companies represented about 43% of the total industry revenue.
As the second largest telecommunications provider in Canada,
TELUS generated $9.8 billion in revenues in 2010, or approximately 23%
of the total industry revenue. TELUS’ revenue growth resumed in 2010,
increasing by 1.8%, with wireless revenues and wireline data revenue
representing approximately 74% of total revenues (71% in 2009).
The Company has targeted consolidated revenue growth between
1 and 4% in 2011.
The discussion in this section is qualified in its entirety by the Caution
regarding forward-looking statements at the beginning of the MD&A.
Outlook for the telecommunications industry
in 2011
During 2010, Canada’s economy showed signs of improvement, with
economic growth continuing through the fourth quarter of 2010 after
emerging from a recession in the third quarter of 2009. The Bank of
Canada reported in its January 2011 Monetary Report that it expects
Canada’s economic growth to be 2.4% in 2011 and 2.8% in 2012.
Western Canadian provinces are projected to grow at the fastest rates,
due to strong global demand for commodities.
9GENERAL OUTLOOK
Expectations for the telecommunications industry in 2011