89 Broadcast Licenses and Goodwill Deferred Credits Foreign Currency Exchange Long-term debt denominated in U.S. dollars is translated into Canadian dollars at the year end rate of exchange. Exchange gains or losses on translating long-term debt are deferred, except for hedged debt, and are amortized on a straight-line basis over the remaining term of the debt. The liability method of tax allocation is used in accounting for income taxes. Under this method, future tax assets and liabilities are determined based on differences between the financial reporting and tax bases of assets and liabilities, and measured using the substantially enacted tax rates and laws that will be in effect when the differences are expected to reverse. Income Taxes Deferred credits include a provision for contributions to Canadian broadcasting ini- tiatives that must be made by a purchaser of specialty television, pay television, and radio undertakings in accordance with CRTC policies (“CRTC benefits”) associated with acquiring radio and programming businesses and foreign exchange gains on translating long-term debt. The provision for CRTC benefits will be drawn down when the Company makes eligible payments towards meeting the conditions of license. The cost of acquiring radio and programming network businesses is allocated to the fair value of related net identifiable tangible and intangible assets acquired.  Net identifiable intangible assets acquired consist primarily of broadcast licenses. The excess of the cost of acquiring radio and programming businesses over the fair value of related net identifiable tangible and intangible assets acquired is allocated to goodwill. Amounts allocated to broadcast licenses and goodwill are amortized on a straight-line basis over 40 years. The Company reviews the valuation and amortiza- tion periods of goodwill whenever events or changes in circumstances warrant such a review. In doing so, the Company evaluates whether there has been a permanent impairment in the value of unamortized goodwill based on the estimated undis- counted cash flows of each business to which the goodwill relates.