Offer to purchase CLEARNET.pdf - About TELUS

TELUS CORPORATION
(FORMERLY BCT.TELUS COMMUNICATIONS INC.)
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1999
19. UNCERTAINTY DUE TO THE YEAR 2000 Issue
The Year 2000 Issue arises because many computerized systems use two digits rather than four to identify a
year. Date-sensitive systems may recognize the year 2000 as 1900 or some other date, resulting in errors
when information using year 2000 dates is processed. In addition, similar problems may arise in some
systems which use certain dates in 1999 to represent something other than a date. Although the change in
date has occurred, it is not possible to conclude that all aspects of the Year 2000 Issue that may affect the
entity, including those related to customers, suppliers, or other third parties, have been fully resolved.
20. PRIOR YEAR PRESENTATION
The 1998 amounts have been reclassified, where applicable, to conform with the 1999 presentation.
21. DIFFERENCES BETWEEN CANADIAN AND UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
The consolidated financial statements have been prepared in accordance with generally accepted
accounting principles (‘‘GAAP’’) in Canada. The principles adopted in these financial statements conform
in all material respects to those generally accepted in the United States except as summarized below.
Significant differences between Canadian GAAP and U.S. GAAP would have the following effect on
reported net income of the Company:
1999 1998
(millions)
(except per
share amounts)
Net income in accordance with Canadian GAAP ...........................
Adjustments, net of tax:
$349.7 $ 66.9
Net income of acquired company prior to acquisition (a) .................... (15.3) (249.3)
TELUS portion of the restructuring charge (b) ........................... 144.6 —
Decrease in depreciation expense (c) .................................. 17.7 —
Decrease in interest expense (d) ..................................... 14.2 —
Amortization of intangible assets (e) .................................. (59.2) —
Goodwill amortization (f) .......................................... (11.6) —
Change in accounting policy (g) ...................................... (30.8) 5.5
Asset impairment (h) ............................................. — (232.2)
Asset impairment — decrease in depreciation (h) ......................... 40.0 40.0
Net income (loss) in accordance with U.S. GAAP ..........................
Earnings (loss) per share under U.S. GAAP (basic and diluted):
$449.3 $(369.1)
Before extra-ordinary items ......................................... $ 1.88 $ (3.00)
Extra-ordinary items .............................................. — —
After extra-ordinary items .......................................... $ 1.88 $ (3.00)
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