Annual report - About TELUS

notes to consolidated financial statements
20. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED ACCOUNTING PRINCIPLES
The consolidated financial statements have been prepared in accordance with generally accepted accounting principles
(GAAP) in Canada. The principles adopted in these financial statements conform in all material respects to those generally
accepted in the United States except as summarized below. Significant differences between Canadian GAAP and U.S.
GAAP would have the following effect on reported net income of the Company:
(millions) 2000 1999
Net income in accordance with Canadian GAAP
Adjustments, net of tax:
$ 461.0 $ 349.7
Net income of acquired company prior to acquisition (a) – (15.3)
TELUS portion of the restructuring charge (b) – 144.6
Decrease in depreciation expense (c) 19.3 17.7
Decrease in interest expense (d) 23.3 14.2
Amortization of intangible assets (e) (64.6) (59.2)
Goodwill amortization (f) (20.2) (11.6)
Change in accounting policy (g) – (30.8)
Asset impairment – decrease in depreciation (h) 40.0 40.0
Change in future employee benefits (i) (9.1) –
Amortization of additional goodwill – Clearnet purchase (j) (1.4) –
Interest on convertible debentures (k) (1.5) –
Foreign exchange (0.9) –
> 82
Revaluation of future income tax assets (n) 66.3 –
Net income in accordance with U.S. GAAP $ 512.2 $ 449.3
Earnings per share under U.S. GAAP (basic and diluted):
Before extraordinary items $ 2.07 $ 1.88
Extraordinary items – –
After extraordinary items $ 2.07 $ 1.88
The following is a restatement of major balance sheet categories to reflect the application of U.S. GAAP:
(millions) 2000 1999
Current assets $ 1,654.5 $ 1,246.3
Capital assets 15,019.4 9,373.4
Goodwill 2,239.8 400.2
Deferred income taxes 1,212.7 603.5
Other assets 660.8 332.4
$ 20,787.2 $ 11,955.8
Current liabilities $ 6,669.5 $ 1,794.5
Long-term debt 3,262.9 1,664.7
Other long-term liabilities 346.9 141.0
Deferred income taxes 1,749.9 1,804.9
Non-controlling interest 74.3 12.4
Shareholders’ equity 8,683.7 6,538.3
$ 20,787.2 $ 11,955.8