Rogers 2005 Annual Report Download - page 143

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139 ROGERS 2005 ANNUAL REPORT . NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
will qualify for certification as a class action. In addition, on December 9, 2004, Wireless was served with a court
order compelling it to produce certain records and other information relevant to an investigation initiated by
the Commissioner of Competition under the misleading advertising provisions of the Competition Act with
respect to its system access fee.
(b) On April 21, 2004, a proceeding was brought against Fido and its subsidiary, Fido Solutions Inc. and others
alleging breach of contract, breach of confidence, misuse of confidential information, breach of a duty of
loyalty, good faith and to avoid a conflict of duty and self-interest, and conspiracy. The plaintiff is seeking
damages in the amount of $160 million. The proceeding is at an early stage. Wireless believes it has good
defences to the claim.
(c) The Company believes that it has adequately provided for income taxes based on all of the information that is
currently available. The calculation of income taxes in many cases, however, requires significant judgment in
interpreting tax rules and regulations. The Company’s tax filings are subject to audits which could materially
change the amount of current and future income tax assets and liabilities, and could, in certain circumstances,
result in the assessment of interest and penalties.
(d) There exist certain other claims and potential claims against the Company, none of which is expected to have a
material adverse effect on the consolidated financial position of the Company.
Note 23. Canadian and United States accounting policy differences:
The consolidated financial statements of the Company have been prepared in accordance with GAAP as applied in
Canada. In the following respects, GAAP, as applied in the United States, differs from that applied in Canada.
If United States GAAP were employed, loss for the year in each year would be adjusted as follows:
2005 2004
Loss for the year based on Canadian GAAP $ (44,658) $ (67,142)
Gain on sale of cable systems (b) (4,028) (4,028)
Pre-operating costs (c) (8,621) 5,348
Equity instruments (d) 15,818 18,526
Capitalized interest, net (e) 2,879 3,061
Financial instruments (h) (285,775) (188,420)
Stock-based compensation (i) 14,113 15,091
Income taxes (k) (2,090) 8,374
Installation revenues, net (l) 1,706 2,744
Loss on repayment of long-term debt (m) – (28,760)
Interest expense (n) (2,499) –
Non-controlling interest – (36,630)
Other 559 1,211
Loss for the year based on United States GAAP $ (312,596) $ (270,625)
Basic and diluted loss per share based on United States GAAP $ (1.08) $ (1.13)