CANADIAN GAAP VS. U.S. GAAP

Shaw Communications, Inc.* included this information in its 2008 annual report.

Notes to Consolidated Financial Statements (In Part)

August 31, 2008, 2007, and 2006

(all amounts in thousands of Canadian dollars except share and per share amounts)

21. United States Generally Accepted Accounting Principles (In Part) The consolidated financial statements of the Company are prepared in Canadian dollars in accordance with Canadian GAAP. The following adjustments and disclosures would be required in order to present these consolidated financial statements in accordance with U.S. GAAP. (a) Reconciliation to U.S. GAAP

 

2008
$

2007
$

2006
$

Net income using Canadian GAAP

671,562

388,479

458,250

Add (deduct) adjustments for:

     

Deferred charges and credits(2)

18,808

5,672

15,362

Foreign exchange gains on hedged longterm debt(3)

47,382

78,937

Reclassification of hedge losses from other comprehensive income(8)

47,382

78,937

Capitalized interest(11)

4,133

2,244

Income taxes(12)

2,048

10,461

8,990

Net income using US GAAP

654,839

385,934

464,622

Unrealized foreign exchange loss on translation of a selfsustaining foreign operation

18

35

Reclassification adjustments for gains on availableforsale securities included in net income(7)

29,728

Adjustment to fair value of derivatives(8)

5,730

62,843

Reclassification of derivative losses to income to offset foreign exchange gains on hedged longterm debt(8)

40,215

74,632

Change in funded status of noncontributory defined pension plan(10)

     

Minimum liability for pension plan

3,135

 

5,813

2,848

Comprehensive income using US GAAP

3,135

51,740

15,126

Earnings per share using US GAAP

651,704

437,674

449,496

Basic

1.52

0.89

1.07

Diluted

1.51

0.89

1.07

Required

a. Observe net income using Canadian GAAP vs. net income using U.S. GAAP, and comprehensive income using U.S. GAAP. Comment on the materiality of the difference between these numbers.

b. Observe the statements are in Canadian dollars. Would there be a significant difference between using Canadian dollars and U.S. dollars? Comment.