(e) Revenue recognition
The Corporation recognizes operating revenues when the following criteria are met:
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the amount of revenue can be measured reliably; |
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the receipt of economic benefits associated with the transaction is probable; |
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the costs incurred or to be incurred in respect of the transaction can be measured reliably; |
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the stage of completion can be measured reliably where services have been rendered; and |
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significant risks and rewards of ownership, including effective control, have been transferred to the buyer where goods have been sold. |
The portion of revenue that is unearned is recorded under “Deferred revenue” when customers are invoiced.
Telecommunications
The Telecommunications segment provides services under arrangements with multiple deliverables, for which there are two separate accounting units: one for subscriber services (cable television, Internet access, cable or mobile telephony and over-the-top video service, including connection costs and rental of equipment); the other for equipment sales to subscribers. Components of multiple deliverable arrangements are separately accounted for, provided the delivered elements have stand-alone value to the customer and the fair value of any undelivered elements can be objectively and reliably determined. Arrangement consideration is allocated among the separate accounting units based on their relative fair values.
The Telecommunications segment recognizes each of its main activities’ revenues as follows:
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Operating revenues from subscriber services, such as cable television, Internet access, cable and mobile telephony, and over-the-top video service are recognized when services are provided. Promotional offers and rebates are accounted for as a reduction in the service revenue to which they relate; |
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Revenues from equipment sales to subscribers and their costs are recognized in income when the equipment is delivered. Promotional offers related to equipment, with the exclusion of mobile devices, are accounted for as a reduction in related equipment sales on delivery, while promotional offers related to the sale of mobile devices are accounted for as a reduction in related equipment sales on activation; |
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Operating revenues related to service contracts are recognized in income over the life of the specific contracts on a straight-line basis over the period in which the services are provided; |
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Cable connection revenues are deferred and recognized as revenues over the estimated average period that subscribers are expected to remain connected to the network. The incremental and direct costs related to cable connection costs, in an amount not exceeding the revenue, are deferred and recognized as an operating expense over the same period. The excess of those costs over the related revenues is recognized immediately in income. |
Media
The Media segment recognizes each of its main activities’ revenues as follows:
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Advertising revenues are recognized when the advertising is aired on television, is featured in newspapers or magazines or is displayed on the digital properties or on transit shelters; |
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Revenues from subscriptions to specialty television channels or to online publications are recognized on a monthly basis at the time service is provided or over the period of the subscription; |
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Revenues from the sale or distribution of newspapers and magazines are recognized upon delivery, net of provisions for estimated returns based on historical rate of returns; |
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Soundstage and equipment leasing revenues are recognized over the rental period; |
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Revenues derived from speciality film and television services are recognized when services are provided. |
Sports and Entertainment
The Sports and Entertainment segment recognizes each of its main activities’ revenues as follows:
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Revenues from the sale or distribution of books and entertainment products are recognized upon delivery, net of provisions for estimated returns based on historical rate of returns; |
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Revenues from leasing and from ticket (including season tickets), food and beverage sales are recognized when the events take place and/or goods are sold, as the case may be; |
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Revenues from the rental of suites are recognized ratably over the period of the agreement; |
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Revenues from the sale of advertising under the form of venue signage or sponsorships, are recognized ratably over the period of the agreement; |
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Revenues derived from sporting and cultural event management are recognized when services are provided. |