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## Deposits 

In determining the fair value of our deposits, we incorporate the following assumptions: 

b For fixed rate, fixed maturity deposits, we discount the remaining contractual cash flows for these deposits at market interest rates currently offered for deposits with similar terms and risks. 

b For floating rate, fixed maturity deposits, changes in interest rates have minimal impact on fair value as the deposits reprice to market frequently. On that basis, fair value is assumed to equal book value. 

b For deposits with no defined maturities, we consider fair value to equal book value based on book value being equivalent to the amount payable on the reporting date. 

## Subordinated Debt 

The fair value of our subordinated debt is determined by referring to current market prices for similar debt instruments. 

Set out below is a comparison of the amounts which would be repor ted if all of our financial instrument assets and liabilities were reported at their fair values: 

<img src='content_image/52813.jpg'>

ALM — asset/liability management derivatives which we use to manage the interest rate and foreign exch ange exposures arising from our on-balance sheet positions. 

## NOTE 25 Reconciliation of Canadian and United States Gener ally Accepted Accounting Principles 

We prepare our consolidated financial statements in accordance with generally accepted accounting principles (GLYPH<210>GAAPGLYPH<211>) in Canada, including the accounting requirements of our regulator, the Superintendent of Financial Institutions Canada. 

## Condensed Consolidated Balance Sheet 

Set out below are the more significant differences which would result if United States generally accepted accounting principles were applied in the preparation of our consolidated financial statements. 

<img src='content_image/52814.jpg'>

Certain comparative figures have been reclassified to conform with the current yearGLYPH<213>s presentation. 

