Cogeco 2012 Annual Report Download - page 88

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Consolidated financial statements COGECO CABLE INC. 2012 87
NOTES TO THE RECONCILIATIONS
1. Business combinations
As described above, the Corporation has elected not to restate business combinations completed prior to the date of transition.
The requirements of IFRS 3 were applied prospectively to business combinations completed after the date of transition. As part of the
application of those requirements to business combinations completed in 2011, integration, restructuring and acquisition costs were
expensed when incurred in accordance with IFRS, while they were capitalized under Canadian GAAP.
Consolidated statements of financial position
Increase (decrease) August 31, 2011 September 1, 2010
(In thousands of Canadian dollars) $$
Goodwill (2,190 )
Retained earnings (2,190 )
Consolidated statements of profit or loss
Increase (decrease) August 31, 2011
(In thousands of Canadian dollars) $
Integration, restructuring and acquisition costs 2,324
Deferred tax expense (134)
Profit or loss for the period (2,190)
Also as a result of the IFRS 1 election on business combinations described above, any assets or liabilities arising on business
combinations completed before the transition date have not been adjusted from the carrying value previously determined at the date of
the business acquisitions under previous Canadian GAAP. As a result, the amount of intangible assets stemming from the recognition of
deferred income taxes upon application of CICA Handbook section 3465, Income taxes, which occurred after the date of the business
combinations, has been reversed.
Consolidated statements of financial position
Increase (decrease) August 31, 2011 September 1, 2010
(In thousands of Canadian dollars) $$
Intangible assets (73,333) (73,333)
Deferred tax liabilities (61,804) (61,804)
Retained earnings (11,529) (11,529)
2. Share-based compensation
The Corporation’s share options granted vest in tranches over a specified vesting period. Under IFRS, when the only vesting condition is
service from the grant date to the vesting date of each tranche granted, then each tranche should be accounted for as a separate share-
based payment arrangement (i.e. graded vesting method). Canadian GAAP permitted an accounting policy choice with respect to graded
vesting awards. As such, the Corporation treated the arrangement as a single award and the share-based payment was amortized on a
straight-line basis over the vesting period. This difference resulted in an accelerated recognition of the expense for the Corporation.
Consolidated statements of financial position
Increase (decrease) August 31, 2011 September 1, 2010
(In thousands of Canadian dollars) $$
Trade and other receivables 470 427
Share-based compensation reserve – share-based compensation 1,311 1,383
Retained earnings (841) (956)
Consolidated statements of profit or loss
Increase (decrease) August 31, 2011
(In thousands of Canadian dollars) $
Operating expenses (115)
Profit or loss for the period 115