YEAR IN REVIEW – OUR RESULTS
results under ifrs and on a current operating basis
The following analysis provides a more detailed discussion of our financial performance.
Net results under IFRS for the year
Net results under IFRS for the year were a loss of $70.8 million, 10.6% greater than the loss incurred last year. This increase reflects higher operating costs in 2016-2017, mainly programming related, as we reinvested in our content. This investment in our programming was partly offset by the additional revenue in the year and the $75 million of new government funding. In addition, our IFRS results benefited from a lower non-cash pension expense.
Our IFRS results also include non-operating expenses of $2.4 million related to asset sales and retirements.
Further discussion on our revenue and expense changes is included on the following pages.
Results on a current operating basis
The loss on a Current Operating Basis of $22.3 million this year was a decrease of $23.0 million relative to last year. Last year, the results were close to break even, reflecting a balance of revenue, funding and expenses. This year, expenses exceeded revenue and funding, consistent with our reinvestment plan in new content.
CBC/Radio-Canada defines Results on a Current Operating Basis as Net Results under IFRS less the adjustments for non-cash expenses that will not require operating funds within one year and non-cash revenues that will not generate operating funds within one year. This measure is used regularly by management to help monitor performance and balance the Corporation's budget consistent with parliamentary appropriations. We believe this measure provides useful complementary information to readers, while recognizing that it does not have a standard meaning under IFRS and will not likely be comparable to measures presented by other companies.
Adjustments include the elimination of non-cash pension and other employee future benefit costs, which represent the excess of the IFRS expense over the actual cash contribution for the year. Adjustments are also made for other non-cash items such as the depreciation, amortization and decommissioning of capital assets; the amortization of deferred capital funding; and non-budgetary annual leave. Other less significant items not funded or generating funds in the current period, primarily employee-benefit-related, are adjusted for in the reconciliation to Results on a Current Operating Basis.