Offer to purchase CLEARNET.pdf - About TELUS

TELUS CORPORATION
(FORMERLY BCT.TELUS COMMUNICATIONS INC.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
December 31, 1999
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
carrying value by approximately $1 million ($4 million — 1998). Use of these instruments is subject to a
policy which requires that no derivative transaction be effected for the purpose of establishing a speculative
or a levered position and sets criteria for the credit worthiness of the transaction counterparties.
The Company is exposed to credit risk with respect to its short-term deposits and sinking fund assets. Credit
risk is minimized substantially by ensuring that these financial assets are placed with governments,
well-capitalized financial institutions and other credit worthy counter-parties. An ongoing review is
performed to evaluate changes in the status of counter parties.
The Company is exposed to credit risk with respect to its accounts and leases receivable, however, this is
minimized by the Company’s large customer base which covers all consumer and business sectors in British
Columbia and Alberta. The Company follows a program of credit evaluations of customers and limits the
amount of credit extended when deemed necessary. The Company maintains provisions for potential credit
losses, and any such losses to date have been within management’s expectations.
2. OTHER REVENUES
1999 1998
(millions)
Service and equipment sales ......................................... $ 405.1 $372.3
Directory advertising and sales ........................................ 292.2 277.5
Information services ............................................... 167.7 111.4
Rental ......................................................... 92.7 104.7
Other .......................................................... 110.5 87.7
$1,068.2 $953.6
3. OTHER INCOME, NET
1999 1998
(millions)
Gain on disposal of property and investments ............................... $36.9 $46.3
Interest income ..................................................... 10.1 23.4
Sinking fund income ................................................. 12.6 11.4
Non-operating loss from joint venture ..................................... — (7.2)
Investment loss ..................................................... — (4.7)
Charitable donations ................................................. (14.7) (6.5)
Other ............................................................ (4.7) (5.8)
$ 40.2 $56.9
I-13