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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

## CONDENSED BALANCE SHEET 8 

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7 Under U.S. GAAP, a net loss recognized pursuant to SFAS No. 87 "Employers’ Accounting for Pensions" as an additional pension liability not yet recognized as net period pension cost, must be recorded as a component of comprehensive income. 8 In accordance with U.S. GAAP, the condensed Statement of Consolidated Income and Balance Sheet are prepared using the equity method of accounting for joint ven- 

tures. Excluding the impact of other U.S. GAAP adjustments, the use of the proportionate consolidation method of accounting for joint ventures, as required under Canadian GAAP, results in the same net income and Shareholders' Equity. 9 

Under U.S. GAAP, the Company is required to record a deferred income tax liability for its cost-of-service regulated businesses. As these deferred income taxes are recover- able through future revenues, a corresponding regulatory asset is recorded for U.S. GAAP purposes. 10 Current liabilities include dividends payable of $114 million (2000 – $103 million) and current taxes payable of $149 million (2000 – $169 million). 

11 

Under U.S. GAAP, the Preferred Securities are classified as a liability. The fair value of the Preferred Securities at December 31, 2001 is $740 million (2000 – $974 million). 

## INCOME TAXES 

The tax effects of differences between the accounting value and the tax value of assets and liabilities are as follows. 

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