GLYPH<129> IFRS 9, Financial Instruments (IFRS 9) – The IASB issued IFRS 9, which replaces IAS 39, Financial Instruments: Recognition and Measurement, establishes principles for the financial reporting of financial assets and financial liabilities that will present relevant and useful information to users of financial statements for their assessment of the amounts, timing and uncertainty of an entity’s future cash flows. This new standard also includes a new general hedge accounting standard which will align hedge accounting more closely with risk management. It does not fundamentally change the types of hedging relationships or the requirement to measure and recognize ineffectiveness, however it will provide more hedging strategies that are used for risk management to qualify for hedge accounting and introduce more judgment to assess the effectiveness of a hedging relationship. The IASB has not yet communicated the mandatory effective date of IFRS 9. We are assessing the impact of this new standard on our consolidated financial statements. GLYPH<129> IFRIC 21, Levies (IFRIC 21) – In May 2013, the IASB issued IFRIC 21, which provides guidance on when to recognise a liability for a levy imposed by a government, both for levies that are accounted for in accordance with IAS 37 Provisions, Contingent Liabilities and Contingent Assets and those where the timing and amount of the levy is certain. The Interpretation identifies the obligating event for the recognition of a liability as the activity that triggers the payment of the levy in accordance with the relevant legislation. It provides the following guidance on recognition of a liability to pay levies (i) the liability is recognised progressively if the obligating event occurs over a period of time, and (ii) if an obligation is triggered on reaching a minimum threshold, the liability is recognised when that minimum threshold is reached. The standard is effective for annual periods beginning on or after January 1, 2014, with early adoption permitted. We are assessing the impact of this new standard on our consolidated financial statements. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE 3: SEGMENTED INFORMATION Information by S egment Our reportable segments are Wireless, Cable, Business Solutions and Media. All four segments operate substantially in Canada. Corporate items and eliminations includes our interests in businesses that are not reportable operating segments, corporate administrative functions and eliminations of inter-segment revenue and costs. We follow the same accounting policies for our segments as those described in note 2 to these consolidated financial statements. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. We account for transactions between reportable segments in the same way we account for transactions with external parties and eliminate them on consolidation. The Chief Executive Officer and Chief Financial Officer are the chief operating decision makers and regularly review our operations and performance by segment. They review adjusted operating profit as a key measure of performance for each segment and to make decisions about the allocation of resources. Adjusted operating profit is income before restructuring, acquisition and other expenses, stock-based compensation expense, depreciation and amortization, impairment of assets, finance costs, other income, and income taxes. This measure of segment operating results is different from operating income on the consolidated statements of income. 1 Included in operating costs on the consolidated statements of income. Year ended December 31, 2013 Wireless Cable Business Solutions Media Corporate items and eliminations Consolidated totals Operating revenue $ 7,270 $ 3,475 $ 374 $ 1,704 $ (117) $ 12,706 Operating costs 1 4,113 1,757 268 1,543 32 7,713 Adjusted operating profit 3,157 1,718 106 161 (149) 4,993 Restructuring, acquisition and other expenses 85 Stock-based compensation expense 1 84 Depreciation and amortization 1,898 Operating income 2,926 Finance costs (742) Other income 81 Income before income taxes $ 2,265 Additions to property, plant and equipment $ 865 $ 1,105 $ 107 $ 79 $ 84 $ 2,240 Goodwill $ 1,146 $ 1,256 $ 426 $ 923 $ – $ 3,751 Total assets $ 9,775 $ 5,527 $ 1,195 $ 2,247 $ 4,857 $ 23,601 102 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT