discount rates, attrition rates, and terminal growth rates to estimate
future earnings. We expense the transaction costs associated with the
acquisitions as we incur them.
See note 7 for information related to business combinations in 2013
and 2012.
Use of Estimates and Judgments
When preparing our financial statements, management makes
judgments, estimates and assumptions that affect how accounting
policies are applied and the amounts we report as assets, liabilities,
revenue and expenses. Significant changes in the assumptions,
including those related to our future business plans and cash flows,
could materially change the carrying amounts we record. Actual results
could be different from these estimates.
We use estimates that are inherently uncertain in the following key
areas:
 considering inputs to determine the fair value of assets acquired and
liabilities assumed in business combinations (see Basis of
Consolidation, above)
 considering industry trends and other factors to determine the
estimated useful lives of property, plant and equipment (seeProperty,
Plant and Equipment, below)
 capitalizing direct labour, overhead and interest costs to property,
plant and equipment (seeProperty, Plant and Equipment, below)
 determining the recoverable amount of non-financial assets when
testing for impairment (seeImpairment, below), and
 measuring the fair value of derivative instruments (see note 20),
pension obligations (see note 22) and stock-based compensation
liabilities (see note 24).
94 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT