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Consolidated financial statements COGECO CABLE INC. 2009 53
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended August 31, 2009 and 2008
NATURE OF OPERATIONS
Cogeco Cable Inc. (the “Corporation”) is a Canadian public company whose shares are listed on the Toronto Stock Exchange
(“TSX”). The Corporation’s core business is providing Cable Television, High Speed Internet (“HSI”), Telephony and other
telecommunications services to its residential and commercial customers in Canada and in Portugal.
1. SIGNIFICANT ACCOUNTING POLICIES
The consolidated financial statements are prepared in conformity with Canadian generally accepted accounting principles (“GAAP”).
A) CONSOLIDATION PRINCIPLES
The consolidated financial statements include the accounts of the Corporation and its subsidiaries. Business acquisitions are
accounted for under the purchase method and operating results are included in the consolidated financial statements as of the date
of the acquisition of control. Other investments are recorded at cost.
B) RECENT ACCOUNTING PRONOUNCEMENTS AND CHANGES IN ACCOUNTING POLICIES
ADOPTED DURING FISCAL 2009
i. CAPITAL DISCLOSURES AND FINANCIAL INSTRUMENTS
Effective September 1, 2008, the Corporation adopted the Canadian Institute of Chartered Accountants (“CICA”) Handbook Section
1535, Capital Disclosures, Section 3862, Financial Instruments – Disclosures and Section 3863, Financial Instruments –
Presentation.
Capital disclosures
Section 1535 of the CICA Handbook requires that an entity disclose information that enables users of its financial statements to
evaluate the entity’s objectives, policies and processes for managing capital, including disclosures of any externally imposed capital
requirements and the consequences for non-compliance. These new disclosures are included in note 19.
Financial instruments
Section 3862 on financial instrument disclosures requires the disclosure of information about the significance of financial
instruments for the entity's financial position and performance and the nature and extent of risks arising from financial instruments to
which the entity is exposed during the period and at the balance sheet date, and how the entity manages those risks.
Section 3863 establishes standards for presentation of financial instruments and non-financial derivatives. It deals with the
classification of financial instruments, from the perspective of the issuer, between liabilities and equities, the classification of related
interest, dividends, gains and losses, and circumstances in which financial assets and financial liabilities are offset.
The adoption of these standards did not have any impact on the classification and measurements of the Corporation’s financial
instruments. The new disclosures pursuant to these new Sections are included in note 19.
ii. GENERAL STANDARDS OF FINANCIAL STATEMENT PRESENTATION
The CICA amended Section 1400 of the CICA Handbook, General Standards of Financial Statement Presentation, to include a
requirement for management to make an assessment of the entity’s ability to continue as a going concern when preparing financial
statements. These changes, including the related disclosure requirements, were adopted by the Corporation on September 1, 2008
and had no impact on the consolidated financial statements.
iii. CREDIT RISK AND FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES
On January 20, 2009, the Emerging Issues Committee (“EIC”) of the Canadian Accounting Standards Board issued EIC Abstract
173, Credit Risk and Fair Value of Financial Assets and Financial Liabilities, which establishes guidance requiring an entity to
consider its own credit risk as well as the credit risk of the counterparty in determining the fair value of financial assets and financial
liabilities, including derivative instruments. EIC 173 is applicable to all financial assets and liabilities measured at fair value in interim
and annual financial statements for periods ending on or after January 20, 2009 and was applicable to the Corporation for its second
quarter of fiscal 2009 with retrospective application, without restatement of prior periods, to the beginning of its current fiscal year.
The adoption of this new abstract during the second quarter had no significant impact on the consolidated balance sheet at
September 1, 2008.