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50 COGECO CABLE INC. 2010 Consolidated Financial Statements
Consolidated balance sheets
Increase (decrease) August 31,
2009
September 1,
2008
(in thousands of dollars) $$
Deferred charges (34,491) (32,325)
Future income tax liabilities (10,212) (9,599)
Retained earnings (24,279) (22,726)
ii. Financial instrument disclosures
In 2009, the Canadian Accounting Standards Board (“AcSB”) amended CICA Handbook Section 3862, Financial instruments – disclosures, to
require enhanced disclosures about the relative reliability of the data, or inputs, that an entity uses in measuring the fair values of its financial
instruments. The new requirements are effective for annual financial statements for fiscal years ending after September 30, 2009. The adoption
of this amendment did not have any impact on the classification and measurement of the Corporation’s financial instruments. The new
disclosures pursuant to this amendment are included in note 18 of the Corporation’s consolidated financial statements.
Adopted during fiscal 2009
iii. Capital disclosures and financial instruments
Effective September 1, 2008, the Corporation adopted the 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 18.
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 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 measurement of the Corporation’s financial instruments. The
new disclosures pursuant to these new sections are included in note 18.
iv. 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.
v. Credit risk and fair value of financial assets and financial liabilities
On January 20, 2009, the Emerging Issues Committee (“EIC”) of the Canadian AcSB 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 to the beginning of
the 2009 fiscal year, without restatement of prior periods. The adoption of this new abstract during the second quarter of 2009 had no
significant impact on the consolidated balance sheet at September 1, 2008.