reconciliation of accounting principles
Talisman’s Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in Canada (Canadian GAAP) which, in most respects, conform to accounting principles generally accepted in the United States (US GAAP). A summary of the significant differences between Canadian and US GAAP follows. Additional information regarding US GAAP differences is contained in note 20 to the Company’s audited Consolidated Financial Statements contained in the 2006 Annual Financial Report.
net income in accordance with US GAAP
| Years ended December 31 (millions of C$ unless otherwise stated) | 2006 | 2005 | 2004 |
|---|---|---|---|
| Net income from continuing operations – Canadian GAAP | 1,452 | 1,354 | 519 |
| Reconciling items between Canadian GAAP and US GAAP | (76) | (65) | 40 |
| Income from continuing operations | 1,376 | 1,289 | 559 |
| Income from discontinued operations | 553 | 207 | 135 |
| Income before cumulative effect of changes in accounting principles | 1,929 | 1,496 | 694 |
| Cumulative effect of changes in accounting principles, net of tax | (9) | – | – |
| Net income – US GAAP | 1,920 | 1,496 | 694 |
| Net income per common share (C$) 1 | |||
| Basic | 1.76 | 1.36 | 0.60 |
| Diluted | 1.71 | 1.32 | 0.59 |
1 Prior years’ per common share numbers have been adjusted to reflect the three-for-one share split, which was effected in May 2006.
comprehensive income in accordance with US GAAP
| Years ended December 31 (millions of C$) | 2006 | 2005 | 2004 |
|---|---|---|---|
| Net income – US GAAP | 1,920 | 1,496 | 694 |
| Other comprehensive income | |||
| Unrealized foreign exchange gain on translation of self-sustaining operations | 179 | 40 | 288 |
| Minimum pension liability, net of tax | – | (8) | – |
| Unrealized change in fair value of financial instruments, net of tax | 92 | (20) | (40) |
| Comprehensive income – US GAAP | 2,191 | 1,508 | 942 |
All financial data should be read in conjunction with the audited Consolidated Financial Statements of the Company contained in the 2006 Annual Financial Report.
balance sheet items in accordance with US GAAP follows:
| 2006 | 2005 | |||
| December 31 (millions of C$) | Canadian GAAP | US GAAP | Canadian GAAP | US GAAP |
|---|---|---|---|---|
| Total liabilities and shareholders’ equity | 21,461 | 21,728 | 18,354 | 18,551 |
All financial data should be read in conjunction with the audited Consolidated Financial Statements of the Company contained in the 2006 Annual Financial Report.
net production (after royalties)
| 2006 | 2005 | 2004 | 2003 | 2002 | |
|---|---|---|---|---|---|
| Crude oil and liquids (bbls/d) | |||||
| North America | 39,382 | 42,613 | 43,303 | 45,035 | 47,182 |
| United Kingdom 1 | 101,682 | 105,582 | 114,906 | 110,580 | 122,231 |
| Scandinavia 2 | 32,327 | 25,676 | 5,862 | 2,711 | - |
| Southeast Asia 3 | 29,211 | 21,406 | 20,884 | 14,853 | 14,025 |
| Other | |||||
| North Africa 4 | 7,674 | 9,449 | 8,338 | 3,351 | – |
| Sudan | - | - | - | 6,997 | 36,346 |
| Trinidad and Tobago | 7,142 | 8,545 | – | – | – |
| Total oil and liquids | 217,418 | 213,271 | 193,293 | 183,527 | 219,784 |
| Natural gas (mmcf/d) | |||||
| North America | 744 | 733 | 715 | 678 | 665 |
| United Kingdom 1 | 119 | 103 | 102 | 102 | 107 |
| Scandinavia 2 | 14 | 9 | 3 | 1 | - |
| Southeast Asia 3 | 214 | 198 | 194 | 110 | 89 |
| Total natural gas | 1,091 | 1,043 | 1,014 | 891 | 861 |
| Total conventional (mboe/d) | 399 | 387 | 362 | 332 | 363 |
| Synthetic oil (Canada) (mbbls/d) 5 | 3.0 | 2.6 | 2.9 | 2.5 | 2.8 |
| Total (mboe/d) | 402 | 390 | 365 | 335 | 366 |
1 United Kingdom includes the UK and the Netherlands.
2 Scandinavia includes Denmark from 2005.
3 Southeast Asia includes Indonesia, Malaysia/Vietnam and from 2005, Australia.
4 North Africa includes production from Algeria and from 2005, Tunisia.
5 Talisman sold its indirect interest in Syncrude on January 2, 2007.
2 Scandinavia includes Denmark from 2005.
3 Southeast Asia includes Indonesia, Malaysia/Vietnam and from 2005, Australia.
4 North Africa includes production from Algeria and from 2005, Tunisia.
5 Talisman sold its indirect interest in Syncrude on January 2, 2007.