NOTES TO CONSOLIDATED FINANCIAL STATEMENTS GLYPH<129> available-for-sale financial assets – we measure the excess of the cost to acquire the asset (less any impairment loss we have previously recognized), over its current fair value, if any. The difference is reclassified from the available-for-sale reserve in equity to net income. GLYPH<129> its fair value less costs to sell, or GLYPH<129> its value in use. GLYPH<129> publicly traded companies: we record them at fair value based on publicly quoted prices GLYPH<129> private companies: we record them at fair value using well established market or asset based techniques, or projected income valuation techniques, applying them to each investment’s future operating and profitability prospects. GLYPH<129> future cash flows GLYPH<129> terminal growth rate, and GLYPH<129> the discount rate applied. GLYPH<129> Joint operations, when we have the rights to the assets and obligations for the liabilities related to the arrangement GLYPH<129> Joint ventures, when we have the rights to the net assets of the arrangement. Investments 100 ROGERS COMMUNICATIONS INC. 2013 ANNUAL REPORT See note 14 for more information about our investments. We record changes in the fair value of these investments in other comprehensive income until we dispose of the investments or they become impaired. The above concepts used to determine the recoverable amount require significant estimates such as: We estimate value in use by discounting estimated future cash flows from a cash generating unit or asset to their present value using a pre- tax rate that reflects current market assessments of the time value of money and the risks specific to the asset. Estimated cash flows are based on management’s assumptions and are supported by external information. We estimate an asset’s (or cash generating unit’s) fair value less costs to sell using the best information available to estimate the amount we could obtain from disposing the asset in an arm’s length transaction, less the estimated cost of disposal. We classify our investments in publicly traded and private companies where we have no control or significant influence as available-for-sale investments, and account for them as follows: If our estimate of the asset’s or cash generating unit’s recoverable amount is less than its carrying amount, we reduce its carrying amount to the recoverable amount, and recognize the loss in net income. We reverse a previously recorded impairment loss if our estimate of a previously impaired asset’s or cash generating unit’s recoverable amount has increased such that the impairment recorded in the previous year has reversed. The reversal is recognized by increasing the asset’s or cash generating unit’s carrying amount to our new estimate of its recoverable amount. The new carrying amount cannot be higher than the carrying amount we would have recorded if we had not recognized an impairment loss in previous years. We do not reverse impairment losses recognized for goodwill. At the end of each reporting period, we assess whether there is objective evidence that impairment exists in our investments in associates and joint arrangements. If objective evidence exists, we compare the carrying amount of the investment to its recoverable amount and recognize the excess over the recoverable amount, if any, as a loss in net income (see Recognition of Impairment Charge , below). We test goodwill and indefinite-life intangible assets for impairment once a year, or more frequently if we identify indicators of impairment. Goodwill is allocated to cash generating units (or groups of cash generating units) based on the level at which management monitors goodwill, which cannot be higher than an operating segment. The allocation involves considerable management judgement, and is made to cash generating units (or groups of cash generating units) that are expected to benefit from the synergies of the business combination from which the goodwill arose. A cash generating unit is the smallest identifiable group of assets that generates cash inflows largely independent of the cash inflows from other assets or groups of assets. Our non-financial assets with finite useful lives include property, plant and equipment, and intangible assets. We test these assets for impairment whenever an event or change in circumstances indicates that their carrying amounts may not be recoverable. The asset is impaired if the recoverable amount is less than the carrying amount. If we cannot estimate the recoverable amount of an individual asset because it does not generate independent cash inflows, we test the entire cash generating unit for impairment. The recoverable amount of a cash generating unit or asset is the higher of: We eliminate unrealized gains and losses from our investments in associates or joint ventures against our investment, up to the amount of our interest in the entity. We recognize our investments in associates and joint ventures initially at cost, and then increase or decrease the carrying amounts based on our share of each entity’s income or loss after initial recognition. Distributions we receive from these entities reduce the carrying amount of our investments. We use the equity method to account for our investments in associates and joint ventures, and we use the proportionate consolidation method to account for our investments in joint operations. A joint arrangement exists when there is a contractual agreement that establishes joint control over its activities and requires unanimous consent for strategic financial and operating decisions. We classify our interests in joint arrangements into one of two categories: An entity is an associate when we have a significant influence on the entity’s financial and operating policies but do not control it. We are generally presumed to have significant influence over an entity when we hold more than 20% of the voting power. Investments in Associates and Joint Arrangements Goodwill and Indefinite-Life Intangible Assets Investments in Associates and Joint Arrangements Non-Financial Assets with Finite Useful Lives Recognition of Impairment Charge Investments in Publicly Traded and Private Companies