109 BALANCE SHEET ITEMS USING U.S. GAAP The cumulative effect of these adjustments on shareholders’ equity/net investment is as follows: Areas of material difference between accounting principles generally accepted in Canada and the United States and their impact on the consolidated financial state- ments are as follows: Start-up costs of new specialty programming networks and costs associated with reformatting radio stations are deferred and amortized under Canadian GAAP. Under U.S. GAAP, these costs are expensed as incurred. Foreign exchange gains on translation of long-term debt are amortized on a straight- line basis over the remaining term of the debt under Canadian GAAP. U.S. GAAP requires gains to be included in income when incurred. (1) Deferred charges (2) Foreign exchange gains  (thousands of Canadian dollars) 2000 1999 Canadian U.S. Canadian U.S. GAAP GAAP GAAP GAAP Investments and other assets (3) 76,177 90,957 516,152 546,011 Deferred charges (1) 15,054 12,136 3,422 – Income taxes payable 12,767 14,723 7,025 7,025 Deferred credits (2) 36,949 32,883 – – Future tax liability 169,898 176,650 63,699 72,238 Shareholders’ equity/net investment 826,678 834,197 470,839 488,738 (thousands of Canadian dollars) 2000 1999 Shareholders’ equity/net investment using Canadian GAAP 826,678 470,839 Deferred charges (1) (1,836)  (1,882) Foreign exchange gains (2) 970 – Equity in earnings of WIC (3) 4,345 – Accumulated other comprehensive income: Unrealized gains on investments (4) 4,040 19,781 Shareholders’ equity/net investment  using U.S. GAAP 834,197 488,738