Cogeco 2015 Annual Report Download - page 52

MD&A COGECO CABLE INC. 2015 51
For more information on our initiatives and our performance, please refer to the CSR Report, which will be published in January 2016 and will
cover fiscal years 2014 and 2015.
RECOGNITIONS
The Corporation’s CSR program and related initiatives were recognized during fiscal 2015:
• Cogeco Cable was named to Corporate Knights’ The Future 40 Responsible Corporate Leaders in Canada for a second year in a row.
In 2014, the company held the 24th spot in the highly regarded magazine’s ranking. This year, it rose to 9th place, a significant advancement
for the Corporation in terms of corporate social responsibility; and
• For a second year in a row, Cogeco Cable was part of the Jantzi Social Index, consisting of 60 Canadian companies that passed a
set of broadly based environmental, social, and governance rating criteria. The analysis highlights Cogeco Cable's implementation of
sound policies and management systems to ensure customer data security and privacy. It also underlines Cogeco Cable's engagement
with key suppliers regarding its social and environmental performance.
12.3 FISCAL 2016 CORPORATE SOCIAL RESPONSIBILITY FOCUS
The Corporation recognizes that there are risks and opportunities arising from sustainability challenges such as climate change, resources scarcity,
volatility in energy prices, supply chain risks, etc. The Corporation will be working in the upcoming year on two topics that are currently receiving
significant attention in the communications industry, which are equipment energy consumption (such as set-top boxes) and conflict minerals.
Other initiatives will include the reduction of our GHG, the implementation of our Suppliers Code of Conduct and the strengthening of our responsible
purchasing practices throughout the Corporation.
In fiscal 2016, our focus will also continue to be the implementation of our CSR program in our business units. We will monitor and report on our
CSR performance to the CSR Steering Committee and to the Corporate Governance Committee. We will also monitor the progress made on our
CSR commitments.
13. CONTROLS AND PROCEDURES
Internal control over financial reporting ("ICFR") is a process designed to provide reasonable, but not absolute, assurance regarding the reliability
of financial reporting and of the preparation of financial statements for external purposes in accordance with IFRS. The President and Chief
Executive Officer (“CEO”) and the Senior Vice President and Chief Financial Officer (“CFO”), together with Management, are responsible for
establishing and maintaining adequate disclosure controls and procedures ("DC&P") and ICFR, as defined in National Instrument 52-109. Cogeco
Cable’s internal control framework is based on the criteria published in the updated version released in May 2013 of the report Internal Control
Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.
The CEO and CFO, supported by Management, evaluated the design and effectiveness of the Corporation's DC&P and ICFR at August 31, 2015,
and concluded that they are effective. Furthermore, no significant changes to the internal controls over financial reporting occurred during the
year ended August 31, 2015.
14. ACCOUNTING POLICIES
14.1 CRITICAL ACCOUNTING POLICIES AND ESTIMATES
Preparation of the consolidated financial statements in accordance with IFRS requires management to adopt accounting policies and to make
estimates and assumptions that affect the reported amounts of assets and liabilities, contingent assets and liabilities and revenue and expenses
during the reporting year. A summary of the Corporation's significant accounting policies is presented in Note 2 of the consolidated financial
statements. The following accounting policies were identified as critical to Cogeco Cable's business operations.
REVENUE RECOGNITION
Revenue is measured at the fair value of the consideration received or receivable, net of returns and discounts. The Corporation recognizes
revenue from the sale of products or the rendering of services when the following conditions are met:
The amount of revenue and related costs can be measured reliably;
The significant risks and rewards of ownership have been transferred to customers and there is no continuing management
involvement to the degree usually associated with ownership nor effective control over the goods; and
The recovery of the consideration is probable.
More specifically, the Corporation's principal sources of revenue are recognized as follows:
Monthly subscription revenue for video, Internet and telephony services and rental of equipment are recognized as the services
are provided;
Revenue from data services, long-distance and other pay-per-use services are recognized as the services are provided;
Revenue from colocation, network connectivity, managed hosting, cloud services and managed IT services are recognized as the
services are provided; and
Revenue generated from the sale of home terminal devices or other equipment are recognized when the customer accepts the
delivery of the equipment.