Offer to purchase CLEARNET.pdf - About TELUS

TELUS CORPORATION
(FORMERLY BCT.TELUS COMMUNICATIONS INC.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accompanying consolidated financial statements have been prepared in accordance with accounting
principles generally accepted in Canada and in conformity with prevailing practices in the Canadian
telecommunications industry. These statements conform in all material respects with International
Accounting Standards.
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates.
The term ‘‘Company’’ is used to mean BCT.TELUS Communications Inc. and where the context of the
narrative permits or requires, its subsidiaries.
(a) Business Combination
On January 31, 1999, the operations of BC TELECOM Inc. (BC TELECOM) and TELUS Corporation
(TELUS) were merged to form BCT.TELUS Communications Inc. The merged Company is engaged in
providing communications services and solutions for consumers and businesses.
The nature of the business combination was such that neither of the combining companies could be
identified as the acquirer for accounting purposes. Therefore, the business combination has been accounted
for using the pooling of interests method of accounting whereby the consolidated financial statements
reflect the combined carrying values of the assets, liabilities and shareholders’ equity, and the combined
operating results of BC TELECOM and TELUS for all periods presented.
Under the terms of the merger, shares of BC TELECOM were exchanged on a one-for-one basis and
shares of TELUS were exchanged on a one for .7773 basis for shares in BCT.TELUS Communications Inc.
Subsequent to the exchange, the former shareholders of BC TELECOM held 52.5% and the former
shareholders of TELUS held 47.5% of the 177,427,492 outstanding voting common shares of the combined
company. On February 1, 1999, the closing market price of the BCT.TELUS Communications Inc. voting
common shares was $42.50.
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