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## BALANCE SHEET ITEMS USING U.S. GAAP 

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The cumulative effect of these adjustments on shareholders’ equity/net investment is as follows: 

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Areas of material difference between accounting principles generally accepted in Canada and the United States and their impact on the consolidated financial state- ments are as follows: 

(1) Deferred charges 

Start-up costs of new specialty programming networks and costs associated with reformatting radio stations are deferred and amortized under Canadian GAAP. Under U.S. GAAP, these costs are expensed as incurred. 

(2) Foreign exchange gains 

Foreign exchange gains on translation of long-term debt are amortized on a straight- line basis over the remaining term of the debt under Canadian GAAP. U.S. GAAP requires gains to be included in income when incurred. 

