Cogeco 2012 Annual Report Download - page 15

14 COGECO CABLE INC. 2012 Management’s Discussion and Analysis (MD&A)
Upon conversion to IFRS, an entity is required to apply IFRS 1 First-time Adoption of which provides guidance for an entity’s initial adoption of
IFRS. IFRS 1 generally requires to apply IFRS accounting policies retrospectively. However, IFRS 1 does include certain elective and
mandatory exemptions from full retrospective application of IFRS at the transition date.
The Corporation elected the following elective exemptions in preparing its opening IFRS Statement of financial position:
Business combinations
A first-time adopter may elect not to apply IFRS 3, Business combinations, retrospectively to business acquisitions completed before the
transition date. The retrospective basis would require restatement of all business combinations that occurred prior to the transition date. The
Corporation has elected not to retrospectively apply IFRS 3 to business combinations completed prior to its transition date and such business
combinations have not been restated. Any assets or liabilities arising on business combinations completed before the transition date have not
been adjusted from the carrying value previously determined under Canadian GAAP as a result of applying this exemption.
Employee benefits
The Corporation has elected to recognize all cumulative actuarial gains and losses that existed at its transition date in opening retained
earnings for all of its employee defined benefit pension plans. The Corporation also elected to prospectively disclose required defined benefit
pension plans amounts under IAS 19 Employee Benefits as the amounts are determined for each accounting period from the date of transition
instead of the current annual period and previous four annual periods.
Share-based payments
The Corporation has elected to apply the requirements of IFRS 2, Share-based payments, only to equity instruments granted after
November 7, 2002 and which vested after the date of transition to IFRS.
Borrowing costs
The Corporation has elected to apply the requirements of IAS 23 Borrowing Costs only to borrowing costs relating to assets for which the
commencement date for capitalization was on or after the date of transition. Borrowing costs incurred before the date of transition were
expensed.
Financial assets and financial liabilities
At the date of transition, the Corporation has elected to reclassify cash and cash equivalents from held-for-trading to loans and receivables.
Leases
At the date of transition, the Corporation has elected to apply the transitional provisions in IFRIC 4, Determining Whether an Arrangement
Contains a Lease, thereby determining whether the Corporation has any arrangements that exist at the date of transition to IFRS that contain a
lease on the basis of facts and circumstances existing at that date. Also, the Corporation has elected to apply an additional exemption by which
an entity which has assessed arrangements which may contain leases under previous GAAP is permitted to maintain this assessment and not
re-assess these arrangements under IFRIC 4.
FUTURE ACCOUNTING DEVELOPMENTS IN CANADA
A number of new standards, interpretations and amendments to existing standards were issued by the International Accounting Standard
Board (“IASB”) that are mandatory but not yet effective for the year ended August 31, 2012, and have not been applied in preparing the
consolidated financial statements. The following standards may have a material impact on future consolidated financial statements of the
Corporation:
Effective for annual periods
starting on or afte
r
IFRS 9 Financial Instruments January 1, 2015 Early adoption permitted
IFRS 10 Consolidated Financial Statements January 1, 2013 Early adoption permitted
IFRS 12 Disclosure of Interests in Other Entities January 1, 2013 Early adoption permitted
IFRS 13 Fair Value Measurement January 1, 2013 Early adoption permitted
A
mendments to IAS 1 Presentation of Financial Statements July 1, 2012 Early adoption permitted
A
mendments to IAS 19 Employee Benefits January 1, 2013 Early adoption permitted