Cogeco 2014 Annual Report Download - page 72

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Consolidated financial statements COGECO CABLE INC. 2014 71
3. ACCOUNTING POLICY DEVELOPMENTS
The following standards issued by the IASB were adopted by the Corporation on September 1, 2013, and unless otherwise indicated, have
no effect on the financial performance of the Corporation:
Amendments to IFRS 7 Financial Instruments: Disclosures;
IFRS 10 Consolidated Financial Statements;
IFRS 12 Disclosure of Interest in Other Entities;
IFRS 13 Fair Value Measurement; and
Amendments to IAS 19 Employee Benefits: The principal difference in the amended standard is that the expected long-term rate
of return on plan assets will no longer be used to calculate the defined benefit costs. The defined benefit costs concepts of "interest
cost" and "expected return on plan assets" are replaced by the concept of "net interest" calculated by applying the discount rate
to the net liability or asset. The amended standard does not prescribe the classification within the statement of profit or loss of
defined benefit net interest. The Corporation has decided to include the net interest expense or income in financial expense.
The variance between the actual rate of return on plan assets and the discount rate, as well as the related impact of the limit on defined
benefit assets, if any, is included in other comprehensive income as remeasurement of net defined benefit liability.
The amended standard has been applied retrospectively for the comparative period presented in these consolidated financial statements.
The impact on profit or loss and other comprehensive income is as follows:
Year ended August 31, 2013
As previously
reported Effects of
amended IAS 19 As currently
reported
(In thousands of Canadian dollars) $ $ $
Operating expenses
Salaries, employee benefits and outsourced services 279,044 (200) 278,844
Financial expense 128,314 456 128,770
Income taxes 62,842 (68) 62,774
Profit for the year 185,083 (188) 184,895
Other comprehensive income
Remeasurement of net defined benefit liability 3,243 256 3,499
Related income taxes (872) (68) (940)
Earnings per share
Basic 3.80 — 3.80
Diluted 3.78 — 3.78
4. NEW ACCOUNTING STANDARDS AND INTERPRETATIONS ISSUED BUT
NOT YET EFFECTIVE
A number of new standards, interpretations and amendments to existing standards were issued by the IASB that are mandatory but not yet
effective for the year ended August 31, 2014, and have not been applied in preparing these 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 after
IFRS 9 Financial Instruments January 1, 2018 Early adoption permitted
IFRS 15 Revenue from Contracts with Customers January 1, 2017 Early adoption permitted
Amendments to IAS 19 Defined Benefits Plans: Employee Contributions July 1, 2014 Early adoption permitted
IFRIC 21 Levies January 1, 2014 Early adoption permitted
IFRS 9 replaces the guidance in IAS 39 Financial Instruments: Recognition and Measurement. The Standard includes requirements for
recognition and measurement, impairment, derecognition and general hedge accounting. The IASB completed its project to replace IAS 39
in phases, adding to the standard as it completed each phase. The version of IFRS 9 issued in 2014 supersedes all previous versions;
however, for a limited period, previous versions of IFRS 9 may be adopted early if not already done so provided the relevant date of initial
application is before February 1, 2015. IFRS 9 does not replace the requirement for portfolio fair value hedge accounting for interest risk
since this phase of the project was separated from IFRS 9 project due to the longer term nature of the macro hedging project which is
currently at the discussion paper phase of the due process. Consequently, the exception in IAS 39 for a fair value hedge of an interest rate
exposure of a portfolio of financial assets or financial liabilities continues to apply.
IFRS 15 establishes principles for reporting the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity's
contracts with customers. It provides a single model for an entity to recognize revenue in order to depict the transfer of promised goods or
services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods