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Consolidated financial statements COGECO CABLE INC. 2012 47
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Years ended August 31, 2012 and 2011
NATURE OF OPERATIONS
Cogeco Cable Inc. (the “Corporation” or the “Parent Corporation”) is a Canadian public corporation whose shares are listed on the Toronto
Stock Exchange (“TSX”). The Corporation’s core business is providing Cable Television, High Speed Internet (“HSI”), Telephony, managed
information technology and infrastructure, and other telecommunications services to its residential and commercial customers in Canada.
The Corporation is a subsidiary of COGECO Inc., which holds 32.1% of the Corporation’s equity shares, representing 82.6% of the votes
attached to the Corporation’s voting shares.
The Corporation's registered office is located at 5 Place Ville Marie, Suite 1700, Montréal, Québec, H3B 0B3.
1. BASIS OF PREPARATION
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as
issued by the International Accounting Standards Board (“IASB”) and in particular, they were prepared in accordance with
IFRS 1 First-time Adoption of IFRS.
These consolidated financial statements reflect the first-time adoption of IFRS, which replaced Canadian Generally Accepted Accounting
Principles (“GAAP”) as of September 1, 2010 (the “Transition date”). All disclosures and explanations related to the first-time adoption of
IFRS are presented in note 26. This note provides information that is considered material to the understanding of the Corporation’s first
IFRS consolidated financial statements. Note 26 also presents a reconciliation of the 2011 financial figures prepared under Canadian
GAAP to the 2011 financial figures prepared under IFRS, including a reconciliation of the consolidated statements of profit or loss and
comprehensive income for the year ended August 31, 2011, as well as a reconciliation of the consolidated statements of financial position
at September 1, 2010 and at August 31, 2011.
The consolidated financial statements have been prepared on a going concern basis using historical cost except for derivative financial
instruments and cash-settled share-based payment arrangements, which are measured at fair value.
Financial information is presented in Canadian dollars, which is the functional currency of Cogeco Cable Inc.
The consolidated financial statements for the years ended August 31, 2012 and 2011 and at September 1, 2010 were approved by the
Board of Directors of Cogeco Cable Inc. at its meeting held on November 1, 2012.
2. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies set out below have been applied consistently to all periods presented in the consolidated financial statements and
in preparing the opening consolidated statement of financial position at September 1, 2010 for the purposes of the transition to IFRS,
unless otherwise indicated.
A. BASIS OF CONSOLIDATION
These consolidated financial statements include the accounts of the Corporation and its subsidiaries.
Subsidiaries are entities controlled by the Corporation. Control is achieved where the Corporation has the power to govern the financial
and operating policies of an entity so as to obtain benefits from its activities. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases. The accounting policies of
subsidiaries are aligned with the policies adopted by the Corporation. Operating segments and percentage of interest in the principal
subsidiaries at August 31, 2012 are as follows:
Operating segment Principal subsidiaries Percentage of equity interest
%
Voting rights
%
Cable services Cogeco Cable Canada Inc. 100 100
Enterprise services Cogeco Data Services Inc. 100 100