NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Notes to Consolidated Financial Statements
We, us, our, Rogers, Rogers Communicationsand the Companyrefer to
Rogers Communications Inc. and our subsidiaries.RCI refers to the legal
entity Rogers Communications Inc., not including our subsidiaries. RCI
also holds interests in various investments and ventures.
NOTE 1: NATURE OF THE BUSINESS
Rogers Communications is a diversified Canadian communications and
media group. Substantially all of our operations and sales are in
Canada. RCI is incorporated in Canada and its registered office is
located at 333 Bloor Street East, Toronto, Ontario, M4W 1G9. RCI’s
shares are publicly traded on the Toronto Stock Exchange (TSX: RCI.A
and RCI.B) and on the New York Stock Exchange (NYSE: RCI).
We report our results of operations in four segments:
Wireless Wireless telecommunications operations for
consumers and businesses
Cable Cable telecommunications operations,
including cable television, Internet and
cable telephony for Canadian consumers
and businesses
Business Solutions Network connectivity through our fibre
network assets to support a range of voice,
data, networking, data centre and cloud-
based services for medium and large
Canadian businesses, governments, and
other telecommunications providers
Media A diversified portfolio of media properties,
including television and radio broadcasting,
digital media, multi-platform shopping,
publishing and sports media and
entertainment
Wireless, Cable and Business Solutions are operated by our subsidiary,
Rogers Communications Partnership, and our other wholly owned
subsidiaries. Media is operated by our wholly owned subsidiary Rogers
Media Inc. and its subsidiaries.
See note 3 for more information about our operating segments.
Statement of Compliance
We prepared our consolidated financial statements according to
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB). Our Board of
Directors approved the consolidated financial statements for the years
ended December 31, 2013 and 2012 on February 12, 2014.
NOTE 2: SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
All amounts, except per share amounts, are in Canadian dollars, which
is our functional currency, and rounded to the nearest million, unless
otherwise noted. We prepare the consolidated financial statements on a
historical cost basis, except for certain financial instruments, liabilities
for cash-settled share-based payments and the net deferred pension
liability, which we measure at fair value as described in the notes.
Basis of Consolidation
Subsidiaries
Subsidiaries are entities we control. We include the financial statements
of our subsidiaries in our consolidated financial statements from the
date we gain control of them until our control ceases. We eliminate all
intercompany transactions and balances on consolidation.
Business Combinations
We account for acquisitions of subsidiaries using the acquisition
method of accounting. We calculate the fair value of the consideration
paid as the fair value at the acquisition date of the following:
 assets given, plus
 equity instruments issued, less
 liabilities incurred or assumed at the date of exchange.
We measure goodwill as the fair value of the consideration transferred,
less the net recognized amount of the identifiable assets acquired and
liabilities assumed, all measured at fair value as of the acquisition date.
When the excess is negative, a bargain purchase gain is recognized
immediately in profit or loss.
We use estimates and judgment to determine the fair value of assets
acquired and liabilities assumed, using the best available information
including information from financial markets. This may include
discounted cash flow analyses which utilize key assumptions such as
discount rates, attrition rates, and terminal growth rates to estimate
future earnings. We expense the transaction costs associated with the