Cogeco 2011 Annual Report Download - page 16

Management’s Discussion and Analysis (MD&A) COGECO CABLE INC. 2011 15
The Corporation has completed all activities included in the scoping and diagnostic and impact analysis, evaluation and design phases. The
Corporation has also completed its implementation of a new financial suite under an integrated Oracle platform in order to adequately support
the implementation of IFRS. This financial suite will facilitate the completion of the Corporation’s transition project and the conversion of the
results of operations for fiscal 2011 to be presented as comparative figures to the fiscal 2012 IFRS financial statements. The effects on other
information technology, data systems, and internal controls have also been assessed, and as a result, no significant modifications are
necessary on conversion.
The Corporation’s project for the transition from Canadian GAAP to IFRS is progressing according to the established plan in order to meet the
target date for migration.
Upon conversion to IFRS, an entity is required to apply the guidance contained in these standards retrospectively without limitation unless
there is a specific exemption which modifies this requirement. IFRS 1 – First-time adoption of international financial reporting standards applies
only for first-time adopters of IFRS and contains several mandatory exceptions and optional exemptions to be applied to these entities’ first
IFRS financial statements. Management has completed its analysis of the impact of the significant transitional optional exemptions, and
Cogeco Cable’s elections to be applied at the date of transition to IFRS for these exemptions are as follows:
International
standard Summary of the optional IFRS 1 exemption Application and impact for the Corporation
IFRS 3 – Business
combinations
A first-time adopter may elect not to apply IFRS 3 retrospectively to
past business combinations.
The Corporation has elected not to restate business combinations
completed prior to September 1, 2010.
IFRS 2 – Share-
based payments
A first-time adopter may elect to apply IFRS 2 only to equity
instruments that were granted after November 7, 2002 and which
vested after the date of transition to IFRS.
The Corporation has elected to apply the requirements of IFRS 2 only to
equity instruments granted after November 7, 2002 and which vested
after the date of transition to IFRS.
IAS 16 – Property,
plant and
equipment
A first-time adopter may elect to measure an item of property, plant
and equipment at its fair value at the date of transition to IFRS and
use that fair value as its deemed cost at that date.
The Corporation has elected not to use the fair value of any of its
property, plant and equipment as their deemed cost at the date of
transition to IFRS.
IAS 19 – Employee
benefits
A first-time adopter may elect to recognise all cumulative actuarial
gains and losses at the date of transition to IFRS.
The Corporation has elected to recognise all actuarial gains and losses
at the date of transition to IFRS.
IAS 23 – Borrowing
costs
A first-time adopter may elect to apply IAS 23 only to borrowing
costs relating to qualifying assets for which the commencement
date for capitalisation is on or after the date of transition to IFRS.
The Corporation has elected to apply the requirements of IAS 23 only to
borrowing costs relating to assets for which the commencement date for
capitalisation is on or after the date of transition to IFRS.
IAS 21 – The
effects of
changes in
foreign exchange
rate
A first-time adopter may avoid retroactive restatement translation
differences on monetary and non-monetary items by opting to reset
the cumulative translation differences for all foreign operations to
zero at the date of transition.
The Corporation has elected not to reset the cumulative translation
differences for all foreign operations to zero at the date of transition.
IAS 21 will be applied retroactively for all foreign operations.