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The fair value of stock options granted is estimated as at the grant date using the Black-Scholes option pricing model, using the following assumptions: 

<img src='content_image/21038.jpg'>

## (d) Recent accounting pronouncements 

(i) The Financial Accounting Standards Board in the United States issued a pronounce- ment entitled “Accounting for Derivative Instruments and Hedging Activities” (“FASB No. 133”) which the Company is required to adopt for the year ending August 31, 2001. The Company has not yet fully determined the impact the adoption of FASB No. 133 will have on its consolidated financial statements. However, the Company does not use derivative financial instruments for trading purposes as they enter only into normal commercial foreign currency hedges and interest rate swaps. 

(ii) In December 1999, the Securities and Exchange Commission issued Staff Accounting Bulletin (“SAB”) 101. SAB 101 summarizes certain areas of the Staff’s views in applying generally accepted accounting principles to revenue recognition in financial statements. SAB 101 is effective July 1, 2000, but certain conclusions in SAB 101 cover specific events that occurred after either December 15, 1998 or January 12, 2000. Management does not expect the application of SAB 101 to have a material impact on the consolidated financial position or results of operations of the Company. 

(iii) In June 2000, the Financial Accounting Standards Board in the United States issued Statement of Position 00-2 (“SOP 00-2”), “Accounting by Producers or Distributors of Films”, which provides guidance on generally accepted accounting prin- ciples to all producers or distributors that own or hold rights to distribute or exploit films. The new standard is effective for financial statements in fiscal years beginning after December 15, 2000. The Company has not yet determined the impact the adoption of SOP 00-2 will have on its consolidated financial statements. 

