Telus 2011 Annual Report Download - page 169

TELUS 2011 ANNUAL REPORT . 165
FINANCIAL STATEMENTS & NOTES: 25
Topic
Recognition,
Amount measurement,
(increase (decrease), presentation Presentation
in millions except and/or and/or
Line items affected per share amounts) disclosure disclosure
Comments
Decommissioning
liabilities included
in the cost of
property, plant
and equipment
Operating expenses X
– goods and services purchased $ (4)
Operating expenses
– depreciation $ß 1
Financing costs $ß 4
Net income $ (1)
Net income per Common Share
and Non-Voting Share
– Basic $ß –
– Diluted $ß –
Previously, Canadian GAAP did not adjust
the pre-existing discounted asset retirement
obligation balance for changes in discount
rates and the associated discount accretion
was included with operations expenses.
IFRS-IASB requires that the pre-existing
discounted asset retirement obligation
balance be re-measured every reporting
period using the then current discount
rates and the associated discount accretion
is to be included as a component of
financing costs.
Impairment
of assets
Operating expenses X
– depreciation $ß 5
Income taxes $ (1)
Net income $ (4)
Net income per Common Share
and Non-Voting Share
– Basic $ß (0.01)
– Diluted $ß (0.01)
Previously, Canadian GAAP did not allow
for increases in recoverable amounts of
impaired assets subsequent to the time of
impairment to be recognized. IFRS-IASB
requires that increases in recoverable
amounts of impaired assets subsequent to
the time of impairment be recognized as an
impairment reversal, but only to the extent
that the resulting carrying amount would
not exceed the carrying amount that would
have been the result had an impairment
amount not initially been recognized.
The impair ment reversal recorded at the
transition date thus results in increased
depreciation expense.
Sale of trade
receivables
Other expense, net $ (8) X
Financing costs $ß 8
Previously, Canadian GAAP de-recognized
trade receivables sold to the arm’s-length
securitization trust with which the Company
transacts. IFRS-IASB does not de-recognize
the trade receivables sold to the arm’s-length
securitization trust with which the Company
transacts and considers the sale proceeds
to be short-term borrowings of the Company.
Accordingly, IFRS-IASB requires that the
expenses associated with the sale be pre-
sented
as a component of financing costs.