Telus 2011 Annual Report Download - page 168

164 . TELUS 2011 ANNUAL REPORT
The effects of the transition to IFRS-IASB on the line items in the preceding table can be classified into two categories: those that have recognition,
measurement, presentation and/or disclosure effects for the Company, or those that have only presentation and/or disclosure effects for the Company.
Topic
Recognition,
Amount measurement,
(increase (decrease), presentation Presentation
in millions except and/or and/or
Line items affected per share amounts) disclosure disclosure
Comments
Revenues Operating revenues $ß(9,779) X
Operating revenues
– service $ 9,168
Operating revenues
– equipment $ß 611
Other operating income $ß 2
Other expense, net $ß 2
Previously, Canadian GAAP did not
provide the same specificity of revenue
categorization. IFRS-IASB requires the
disclosure of specific categories of revenue.
Government
assistance
Operating revenues X
– service $ (37)
Other operating income $ß 48
Operating expenses
– employee benefits expense $ß 11
Previously, Canadian GAAP did not define
government assistance to include receipts
such as the high cost serving area portable
subsidy. As well, previously, Canadian GAAP
allowed for government assistance to be
netted against the associated expense as
a cost recovery. IFRS-IASB requires these
government assistance amounts to be
categorized as Other operating income.
Analysis of
expenses and
other expense,
net, recognized
in the statements
of income and
other compre-
hensive income
Operating expenses X
– operations $ß(6,062)
Operating expenses
– restructuring costs $ (74)
Operating expenses
– goods and services purchased $ 4,228
Operating expenses
– employee benefits expense $ 1,934
Other expense, net $ (26)
Previously, Canadian GAAP did not provide
the same level of specificity of expense
analysis. IFRS-IASB requires that expenses
be presented using either a nature approach
or a function approach; the Company has
selected the nature approach.
Leasing (sales
and leaseback
transactions)
Operating expenses X
– goods and services purchased $ß 12
Income taxes $ (3)
Net income $ (9)
Net income per Common Share
and Non-Voting Share
– Basic $ß (0.03)
– Diluted $ß (0.03)
Previously, Canadian GAAP required that
gains arising on sales and leaseback trans-
actions be deferred and amortized over
the term of the resulting lease. IFRS-IASB
requires that, where the original sale was
at fair value, the gain be recognized in
income immediately.
Employee benefits
– defined benefit
pension plans
Operating expenses X
– employee benefits expense $ (39)
Income taxes $ß 11
Net income $ß 28
Net income per Common Share
and Non-Voting Share
– Basic $ 0.09
– Diluted $ 0.09
Other comprehensive income
– employee defined benefit
plans actuarial gains (losses) $ (214)
Previously, Canadian GAAP required that
the excess of the net actuarial gain (loss)
over 10% of the greater of the accrued
benefit obligation and the fair value of the
plan assets was to be amortized over
the expected average remaining service
periods of active employees of the plan,
as were past service costs and transitional
assets and liabilities. IFRS-IASB allows the
Company to choose, and the Company
has chosen, to recognize such balances
at the transition date by way of an opening
adjustment to retained earnings. As well,
IFRS-IASB allows the Company to choose
to charge actuarial gains and losses arising
subsequent to the transition date to other
comprehensive income.