Notes to Consolidated Financial Statements Note  26 : Supplemental Disclosure for Statements of Cash Flows  Note  27 : Reconciliation of Canadian GAAP to United States GAAP Bell Canada Enterprises  2004 Annual Report 118 We have prepared these consolidated financial statements according to Canadian GAAP. The tables below are a reconciliation of significant differences relating to the statement of operations and total shareholders’ equity reported according to Canadian GAAP and United States GAAP. Reconciliation of Net Earnings (Loss) Some of the agreements specify a maximum potential exposure of $26 million, but many do not specify a maximum amount or limited period. No amount has been accrued in the consolidated balance sheet relating to this type of indemnification or guarantee at Decem- ber 31, 2004.  2004 2003 2002 Interest paid on long-term debt 987  1,109 1,019 Income taxes paid (net of refunds) 216 (24) 1,284 2004 2003 2002 Canadian GAAP – Earnings from continuing operations 1,498 1,871 1,871 Adjustments: Deferred costs  (a) 7 (2) 18 Employee future benefits  (b) (75) (132) (14) Derivative instruments  (j) – (12) 15 Other  1 (8) 2 United States GAAP – Earnings from continuing operations 1,431 1,717 1,892 Discontinued operations – United States GAAP  (g) 84 (56) 727 Cumulative effect of change in accounting policy  (k) – (25) (7,268) United States GAAP – Net earnings (loss) before extraordinary gain 1,515 1,636 (4,649) Extraordinary gain 69 – – United States GAAP – Net earnings (loss) 1,584 1,636 (4,649) Dividends on preferred shares  (j) (85) (70) (59) Premium on redemption of preferred shares – (7) (6) United States GAAP – Net earnings (loss) applicable to common shares 1,499 1,559 (4,714) Other comprehensive earnings (loss) items Change in currency translation adjustment (10) (56) 30 Change in unrealized gain (loss) on investments  (h) (12) 17 9 Additional minimum liability for pension obligation  (b) (72) (40) (81) Comprehensive earnings (loss) 1,405 1,480 (4,756) Net earnings (loss) per common share – basic Continuing operations 1.46 1.78 2.14 Discontinued operations and change in accounting policy 0.09 (0.09) (8.23) Extraordinary gain 0.07 – – Net earnings (loss) 1.62 1.69 (6.09) Net earnings (loss) per common share – diluted Continuing operations 1.46 1.78 2.11 Discontinued operations and change in accounting policy 0.09 (0.09) (8.23) Extraordinary gain 0.07 – – Net earnings (loss) 1.62 1.69 (6.12) Dividends per common share 1.20 1.20 1.20 Average number of common shares outstanding (millions) 924.6 920.3 847.9