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)
(j) Extraordinary item
Under U.S. GAAP, the loss on the redemption of certain Clearnet Communications Inc. 2005 Senior
Discount Notes, which is included in interest expense for Canadian GAAP purposes, would have been
treated as an extraordinary item.
(k) Restatement of Prior Year Periods
During the first quarter of 2000, the Company applied the provisions of the new Canadian accounting
standard for income taxes retroactively. Under the new standard, which is substantially consistent with the
U.S. accounting standard ‘‘Statement of Financial Accounting Standards No. 109 Income Taxes’’, the
Company accounts for future income tax assets or future income tax liabilities at the tax rates that are
expected to apply when the asset or liability is settled. As encouraged under the new rules, prior year
financial statements have been restated. The effect of this change on the balance sheet as at December 31,
1999 is to increase intangible and other assets and reduce the deficit by $99.0 million.
(l) Comprehensive Income
SFAS 130, ‘‘Reporting Comprehensive Income’’, requires that a statement of comprehensive income be
displayed with the same prominence as other financial statements. Comprehensive income, which
incorporates net income, includes all changes in equity during a period except those resulting from
investments by and distributions to owners. There is no requirement to disclose comprehensive income
under Canadian GAAP.
There are no material differences between Canadian and U.S. GAAP which would have an impact on the
consolidated statements of comprehensive income except as outlined in the tables above.
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