receivable related to previous years.
Deferred tax assets and liabilities arise from temporary differences
between the carrying amounts of the assets and liabilities we record in
our consolidated statements of financial position and their respective
tax bases. We calculate deferred tax assets and liabilities using enacted
or substantively enacted tax rates that will apply in the years the
temporary differences are expected to reverse.
Deferred tax assets and liabilities are offset if there is a legally
enforceable right to offset current tax liabilities and assets and they
relate to income taxes levied by the same authority on:
 the same taxable entity, or
 different tax entities where these entities intend to settle current tax
liabilities and assets on a net basis or the tax assets and liabilities will
be realized simultaneously.
We recognize a deferred tax asset for unused losses, tax credits and
deductible temporary differences to the extent that it is probable that
future taxable income will be available to use the asset. We use
judgement to evaluate whether we can recover a deferred tax asset
based on our assessment on existing tax laws, estimates of future
profitability and tax planning strategies.
We rely on estimates and assumptions when determining the amount
of current and deferred tax, and take into account the impact of
uncertain tax positions and whether additional taxes and interest may
be due. If new information becomes available and changes our
judgment on the adequacy of existing tax liabilities, these changes
would affect the income tax expense in the period that we make this
determination.
See note 9 for more information about our income taxes.
Foreign Currency Translation
We translate amounts denominated in foreign currencies into Canadian
dollars as follows:
 monetary assets and monetary liabilities – at the exchange rate in
effect at the date of the consolidated statements of financial position
 non-monetary assets, non-monetary liabilities and related
depreciation and amortization expenses – at the historical exchange
rates
 revenue and expenses other than depreciation and amortization – at
the average rate for the month when the transaction was recorded.
Financial Instruments
Recognition
We initially recognize cash and cash equivalents, accounts receivables,
debt securities and accounts payable and accrued liabilities on the date
they originate, and apply the criteria noted below. All other financial
assets and financial liabilities are initially recognized on the trade date
when we become a party to the contractual provision of the
instrument.
96 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT