MANAGEMENT’S DISCUSSION AND ANALYSIS
Contingencies
Considerable judgement is involved in the determination of contingent
liabilities. Our judgement is based on information currently known to
us, and the probability of the ultimate resolution of the contingencies. If
it becomes probable that a contingent liability will result in an outflow
of economic resources, we will record a provision in the period the
change in probability occurs, and it could be material to our
consolidated financial position and results of operations.
Transactions with Related Parties
We have entered into certain transactions in the normal course of
business with related parties in which we have an equity interest. The
amounts paid to these parties were as follows:
Years ended December 31
(In millions of dollars) 2013 2012 % Chg
Revenues $3 $ 1 200
Purchases $8 3 $ 38 118
We have entered into certain transactions with companies, the partners
or senior officers of which are Directors of Rogers and/or our subsidiary
companies. Total amounts paid to these related parties, directly or
indirectly, were as follows:
Years ended December 31
(In millions of dollars) 2013 2012 % Chg
Printing, legal services and commission
paid on premiums for insurance
coverage $4 3 $4 3 –
We have entered into certain transactions with our controlling
shareholder and companies it controls. These transactions are subject to
formal agreements approved by the Audit Committee. Total amounts
paid to these related parties generally reflects the charges to Rogers for
occasional business use of aircraft, net of other administrative services,
and were less than $1 million for 2013 and 2012 combined.
These transactions are measured at the exchange amount, being the
amount agreed to by the related parties are at market terms and
conditions and are reviewed by the Audit Committee.
New Accounting Standards
We adopted the following new accounting standards effective
January 1, 2013, of which none had a material impact on prior periods.
IFRS 10, Consolidated Financial Statements (IFRS 10) –As a result of
the adoption of IFRS 10, we have changed our approach to
determining whether we have control over and consequently whether
we consolidate our investees. IFRS 10 introduces a new control model
that is applicable to all investees. Among other things, it requires the
consolidation of an investee if we control the investee on the basis of
de facto circumstances. In accordance with the transitional provisions
of IFRS 10, we re-assessed the control conclusion for our investees at
January 1, 2013. We made no changes in the current or comparative
period as a result of this assessment.
 IFRS 11, Joint Arrangements (IFRS 11) –As a result of the adoption of
IFRS 11, we have changed how we evaluate our interests in joint
arrangements. Under IFRS 11, we classify our interests in joint
arrangements as either joint operations or joint ventures depending
on our right to the assets and obligations for the liabilities of the
arrangements. When making this assessment, we consider the
structure of the arrangements, the legal form of any separate
vehicles, the contractual terms of the arrangements and other facts
and circumstances. We have re-evaluated our involvement in our
joint arrangements and have accounted for these either using the
proportionate consolidation method, or the equity method
depending on whether the investment is defined as a joint operation
or a joint venture, respectively. The adoption of IFRS 11 was not
material to the current or comparative years.
 IFRS 13, Fair Value Measurement (IFRS 13) –On January 1, 2013, we
adopted IFRS 13, on a prospective basis, which provides a single source
of guidance on how fair value is measured, replacing the fair value
measurement guidance contained in individual IFRSs. IFRS 13 defines fair
value and establishes a framework for measuring fair value. It does not
introduce new fair value measurements or eliminate the practicability