Microcell adjustments Sample Clauses

Microcell adjustments. Effective January 1, 2004, Microcell adopted the fair value method of recognizing stock-based compensation expense under Canadian GAAP. For United States GAAP purposes, the intrinsic value method is used by RCI to account for stock-based compensation. Compensation expense of $5.7 million for the nine months ended September 30, 2004 would not be recognized under United States GAAP. On May 1, 2003, Microcell emerged from a restructuring plan under the Companies' Creditors Arrangement Act and Canada Business Corporations Act. Under United States GAAP, the forgiveness of debt and the effect of the adjustments on the reported amounts of individual assets and liabilities resulting from the adoption of fresh start accounting in the amount of $1,253,660,000 are reflected in the statement of income for the year ended December 31, 2003. Under Canadian GAAP, such adjustments are recorded as capital transactions. In addition, certain differences between Canadian GAAP and United States GAAP exist related to the accounting for Microcell's investments under the equity method which resulted in a reduction in net income under United States GAAP of $500,000 for the year ended December 31, 2003.
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