Indefinite lived intangibles, deferred tax, change of policy following IFRIC clarification

Rogers Communications Inc. – Annual report – 31 December 2016

Industry: Telecoms

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (extract)

(d) CHANGES IN ACCOUNTING POLICIES ADOPTED IN 2016

Change in accounting policy for measurement of deferred income taxes

Following the November 2016 publication of the IFRS Interpretations Committee’s agenda decision addressing the expected manner of recovery of intangible assets with indefinite useful lives for the purposes of measuring deferred tax, we have retrospectively changed our related accounting policy. The IFRS Interpretations Committee observed that in applying International Accounting Standard 12, an entity determines its expected manner of recovery of the carrying amount of the intangible asset with an indefinite useful life, and reflects the tax consequences that follow from that expected manner of recovery. Previously, we measured deferred taxes on temporary differences arising from the portion of indefinite-life intangible assets with no initial associated underlying tax basis using a capital gains tax rate based upon the notion that recovery would result solely from sales of the assets. Consequently, we have adopted an accounting policy to measure deferred taxes on temporary differences arising from indefinite-life intangible assets based upon the tax consequences that follow from the expected manner of recovery of the assets.

The accounting policies set out in these notes to our consolidated financial statements have been applied in preparing the consolidated financial statements as at and for the year ended December 31, 2016 and the comparative information presented in these consolidated financial statements as at and for the year ended December 31, 2015. In preparing our opening and comparative amended Consolidated Statements of Income, Consolidated Statements of Comprehensive Income, Consolidated Statements of Financial Position, and Consolidated Statements of Changes in Shareholders’ Equity, we have amended certain amounts reported in previously issued financial statements.

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NOTE 11: OTHER EXPENSE (INCOME) (extract)

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