CANADIAN GAAP VS. U.S. GAAP
Shaw Communications included Note 21 ‘‘United States Generally Accepted Accounting Principles’’ in its 2008 annual report.
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SHAW COMMUNICATIONS INC.* |
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2008 |
2007 |
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|
Canadian GAAP$ |
US GAAP$ |
Canadian GAAP$ |
US GAAP$ |
|
|
Property, plant, and equipment(11) |
2,616,500 |
2,622,877 |
2,422,900 |
2,425,144 |
|
Deferred charges(2)(9) |
274,666 |
175,818 |
278,525 |
170,881 |
|
Broadcast rights(1)(5)(6) |
4,776,078 |
4,750,844 |
4,776,078 |
4,750,844 |
|
Long term debt(2) |
2,706,534 |
2,731,404 |
2,771,316 |
2,771,316 |
|
Other long term liability(10) |
78,912 |
183,347 |
56,844 |
157,043 |
|
Derivative instruments(8) |
518,856 |
518,856 |
— |
526,679 |
|
Deferred credits(2)(3)(9) |
687,836 |
685,349 |
1,151,724 |
687,913 |
|
Future income taxes |
1,281,826 |
1,215,566 |
1,327,914 |
1,271,791 |
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Shareholders’ equity: |
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Share capital |
2,063,431 |
2,063,431 |
2,053,160 |
2,053,160 |
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Contributed surplus |
23,027 |
23,027 |
8,700 |
8,700 |
|
Retained earnings (deficit) |
226,408 |
121,169 |
68,132 |
178,652 |
|
Accumulated other comprehensive income (loss) |
57,674 |
130,698 |
312 |
126,746 |
|
Total shareholders’ equity |
2,255,192 |
2,076,929 |
1,994,040 |
1,756,462 |
The cumulative effect of these adjustments on consolidated shareholders’ equity is as follows:
|
2008 $ |
2007 $ |
|
|
Shareholders’ equity using Canadian GAAP |
2,255,192 |
1,994,040 |
|
Amortization of intangible assets(1) |
130,208 |
130,208 |
|
Deferred charges and credits(2) |
19,989 |
4,215 |
|
Equity in loss of investees(4) |
35,710 |
35,710 |
|
Gain on sale of subsidiary(5) |
16,052 |
16,052 |
|
Gain on sale of cable systems(6) |
50,063 |
50,063 |
|
Foreign exchange gains on hedged long term debt(3) |
— |
386,075 |
|
Reclassification of hedge losses from other comprehensive income(8) |
— |
386,075 |
|
Capitalized interest(11) |
4,623 |
1,566 |
|
Income taxes(12)(13) |
9,930 |
8,068 |
|
Accumulated other comprehensive loss |
73,024 |
127,058 |
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Shareholders’ equity using US GAAP |
2,076,929 |
1,756,462 |
Required
a. In your opinion, is there a material difference between shareholders’ equity at the end of 2008 using Canadian GAAP vs. U.S. GAAP? Comment.
b. The disclosure indicates ‘‘all amounts in thousands of Canadian dollars except share and per share amounts.’’ In your opinion, does this present a challenge to U.S. investors?
Note: Canada is scheduled to adopt IFRS for their 2011 financial statements.