110 (3) Equity in earnings of WIC (4) Unrealized gains on investments (b) Statements of consolidated cash flows (c) Stock-based compensation The earnings of WIC determined under Canadian GAAP have been adjusted to reflect U.S. GAAP. Under Canadian GAAP, the investment in WIC was accounted for using the cost method of accounting until CRTC approval was received for the transaction. When the Company received CRTC approval, the amount in the accounts under the cost method became the basis for the purchase price allocation and equity account- ing commenced. Under U.S. GAAP, equity accounting for the investment was done retroactively to the date the Company first acquired shares in WIC. Under U.S. GAAP, equity securities having a readily determinable fair value and not classified as trading securities are classified as “available-for-sale securities” and reported at fair value, with unrealized gains and losses included in comprehensive income and reported as a separate component of shareholders’ equity net of related deferred income taxes. Under Canadian GAAP, these investments are carried at cost and written down only when there is evidence that a decline in value that is other than temporary has occurred. Under U.S. GAAP, cash flow from operations per share cannot be reported in the con- solidated statements of cash flows. The Company applies APB Opinion 25 in accounting for common share options granted to employees and officers for U.S. GAAP purposes. Had compensation expense been deter- mined on the basis of the estimated fair values of the options granted in accordance with SFAS No. 123, “Accounting for Stock-Based Compensation”, the net income for the year ended August 31, 2000 would have decreased by $1,930,000 to $159,415,000, basic and fully diluted earnings per share would be $4.78 and $4.68, respectively.