Sun Life 2010 Annual Report Download - page 127

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25. Variable interest entities
We have a greater than 20% interest in a number of VIEs where we do not have a controlling financial interest, including being a
creditor in trusts, limited partnerships, limited liability companies and special purpose entities. These VIEs were used to finance
commercial mortgages, franchise receivables, auto receivables, retail stores, equipment, and to make private debt and equity
investments. As at December 31, 2010, our maximum exposure to loss related to all of these investments is $284 ($313 in 2009),
which is the carrying amount of these assets.
In the fourth quarter of 2007, a subsidiary of ours obtained external funding (as described in Note 12D for excess U.S. statutory
actuarial reserves attributable to specific blocks of universal life policies through the use of a VIE. Our subsidiary consolidates the VIE
as the primary beneficiary since it is exposed to the majority of the expected losses.
26. Summary of differences between accounting principles Generally accepted in
Canada and in the United States
Our Consolidated Financial Statements are prepared in accordance with accounting principles generally accepted in Canada
(“Cdn. GAAP”). These accounting principles differ in certain respects from accounting principles generally accepted in the United
States (“U.S. GAAP”). The differing basis of accounting changes the incidence of profit recognition over its lifetime. Regardless of the
accounting basis chosen, the total profit of an insurance contract will not change. The financial statement impact and a description of
the material differences follow.
Notes to the Consolidated Financial Statements Sun Life Financial Inc. Annual Report 2010 123