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.