Offer to purchase CLEARNET.pdf - About TELUS

TELUS CORPORATION
NOTES TO THE PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1999
(unaudited)
3. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES (Continued)
The following is a restatement of major balance sheet categories to reflect the application of U.S. GAAP:
Current assets .........................................................
(millions)
$ 1,568.9
Property, plant & equipment ............................................... 6,587.4
Goodwill ............................................................. 5,231.6
Intangible assets ........................................................ 3,923.7
Deferred income taxes ................................................... 1,278.5
Other assets ........................................................... 624.2
$19,214.3
Current liabilities ....................................................... $ 1,953.0
Long-term debt ........................................................ 6,464.7
Other long-term liabilities ................................................. 141.0
Deferred income taxes ................................................... 1,804.9
Non-controlling interest .................................................. 12.4
Shareholders’ equity ..................................................... 8,838.3
$19,214.3
(a) Merger of BC TELECOM and TELUS
The business combination between BC TELECOM and TELUS was accounted for using the pooling of
interests method under Canadian GAAP. The merger transaction is more fully described in note 1(a) of the
Company’s audited consolidated financial statements contained in Schedule I of this circular. Under
Canadian GAAP, the application of the pooling of interests method of accounting for the merger of
BC TELECOM and TELUS resulted in the restatement of prior periods as if the two companies had always
been combined. Under U.S. GAAP, the merger is accounted for using the purchase method. Use of the
purchase method results in TELUS being acquired by BC TELECOM for $4,662.4 million (including
merger related costs of $51.9 million and $1.3 million paid to repurchase partial shares) effective
January 31, 1999. The acquisition was effected by issuing 112.3 million shares in TELUS Corporation
(formerly ‘‘BCT.TELUS Communications Inc.’’) and 1.5 million options to replace TELUS options
outstanding.
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