##### 



RECONCILIATION OF CANADIAN AND UNITED STATES GENERALLY ACCEPTED
ACCOUNTING PRINCIPLES
    A.
    
    Reconciliation of Net Income
 For the years ended December 31,
    
    Note
    
    
    2005
    
    
    2004Net Income, as reported under Canadian GAAP
    
    
    
    
    
    $
    86.3
    
    
    
    90.8Adjustments to arrive at Net Income based upon U.S. GAAPShare of earnings of Trizec Properties
    
    
    1
    
    
    
    (2.3
    )
    
    
    (4.2
    )Dilution gains
    
    
    1
    
    
    
    (0.5
    )
    
    
    Deferred income taxes
    
    
    3
    
    
    
    0.3
    
    
    
    0.3Income
before cumulative effect of a change in accounting principle
    
    
    
    
    
    
    83.8
    
    
    
    86.9Share of
cumulative effect of a change in accounting principle of Trizec Properties
    
    
    1
    
    
    
    (1.8
    )
    
    
    Net Income based upon U.S. GAAP
    
    
    
    
    
    $
    82.0
    
    
    
    86.9Income per share based upon U.S. GAAPBasic and DilutedIncome
before cumulative effect of a change in accounting principle
    
    
    
    
    
    $
    1.40
    
    
    
    1.45Cumulative
effect of a change in accounting principle
    
    
    
    
    
    $
    (0.03
    )
    
    
    Net income
    
    
    
    
    
    $
    1.37
    
    
    
    1.45
 Trizec Canada Inc.
    
    1
    
    Reconciliation of Canadian and United States
Generally Accepted Accounting Principles




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##### 



B.
    
    Consolidated Statements of Comprehensive Income
 For the years ended December 31,
    
    Note
    
    
    2005
    
    
    2004Net Income based upon U.S. GAAP
    
    
    
    
    
    $
    82.0
    
    
    
    86.9Other comprehensive income itemsShare of total other comprehensive income of Trizec Properties
    
    
    4
    
    
    
    6.1
    
    
    
    0.6Realized foreign currency translation adjustment
    
    
    4
    
    
    
    (2.6
    )
    
    
    (8.1
    )Total other comprehensive income (loss)
    
    
    
    
    
    
    3.5
    
    
    
    (7.5
    )Comprehensive Income
    
    
    
    
    
    $
    85.5
    
    
    
    79.4
 C.
    
    Consolidated Balance Sheets
 2005
    
    
  
  2004As at December 31,
    
    Note
    
    
    Canadian
 GAAP
    
    
    Increase
(Decrease)
    
    
    U.S.GAAP
    
    
    Canadian
 GAAP
    
    
    Increase
(Decrease)
    
    
    U.S.
GAAPAssetsCurrent assetsCash and cash equivalents
    
    
    
    
    
    $
    73.5
    
    
    
    
    
    
    
    73.5
    
    
    
    56.0
    
    
    
    
    
    
    
    56.0Restricted cash
    
    
    
    
    
    
    7.9
    
    
    
    
    
    
    
    7.9
    
    
    
    7.9
    
    
    
    
    
    
    
    7.9Other assets
    
    
    
    
    
    
    17.9
    
    
    
    
    
    
    
    17.9
    
    
    
    19.6
    
    
    
    
    
    
    
    19.699.3
    
    
    
    
    
    
    
    99.3
    
    
    
    83.5
    
    
    
    
    
    
    
    83.5Investment in Trizec
Properties, Inc.
    
    
    1
    
    
    
    797.7
    
    
    
    13.3
    
    
    
    811.0
    
    
    
    760.1
    
    
    
    11.8
    
    
    
    771.9Investments and other assets
    
    
    2
    
    
    
    401.4
    
    
    
    558.2
    
    
    
    959.6
    
    
    
    435.0
    
    
    
    447.7
    
    
    
    882.7Deferred income taxes
    
    
    3
    
    
    
    112.5
    
    
    
    (109.5
    )
    
    
    3.0
    
    
    
    103.8
    
    
    
    (103.8
    )
    
    
    $
    1,410.9
    
    
    
    462.0
    
    
    
    1,872.9
    
    
    
    1,382.4
    
    
    
    355.7
    
    
    
    1,738.1LiabilitiesCurrent liabilitiesAccounts payable and
accrued liabilities
    
    
    2
    
    
    $
    24.1
    
    
    
    160.6
    
    
    
    184.7
    
    
    
    31.3
    
    
    
    50.1
    
    
    
    81.4Exchangeable debentures
    
    
    2
    
    
    
    890.9
    
    
    
    (207.1
    )
    
    
    683.8
    
    
    
    890.9
    
    
    
    (207.1
    )
    
    
    683.8Deferred income taxes
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6.0
    
    
    
    6.0915.0
    
    
    
    (46.5
    )
    
    
    868.5
    
    
    
    922.2
    
    
    
    (151.0
    )
    
    
    771.2Shareholders EquityShare capital
    
    
    
    
    
    
    376.5
    
    
    
    
    
    
    
    376.5
    
    
    
    376.5
    
    
    
    
    
    
    
    376.5Contributed surplus
    
    
    
    
    
    
    30.2
    
    
    
    
    
    
    
    30.2
    
    
    
    30.2
    
    
    
    
    
    
    
    30.2Foreign currency translation
adjustment
    
    
    4
    
    
    
    14.7
    
    
    
    (14.7
    )
    
    
    
    
    
    
    17.3
    
    
    
    (17.3
    )
    
    
    Retained earnings (deficit)
    
    
    
    
    
    
    74.5
    
    
    
    48.9
    
    
    
    123.4
    
    
    
    36.2
    
    
    
    53.2
    
    
    
    89.4Accumulated other
comprehensive income
    
    
    4
    
    
    
    
    
    
    
    474.3
    
    
    
    474.3
    
    
    
    
    
    
    
    470.8
    
    
    
    470.8495.9
    
    
    
    508.5
    
    
    
    1,004.4
    
    
    
    460.2
    
    
    
    506.7
    
    
    
    966.9$
    1,410.9
    
    
    
    462.0
    
    
    
    1,872.9
    
    
    
    1,382.4
    
    
    
    355.7
    
    
    
    1,738.1
 Trizec Canada Inc.
    
    2
    
    Reconciliation of Canadian and United States
Generally Accepted Accounting Principles




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##### 



1. Investment in Trizec Properties, Inc.
  Trizec Canadas Investment in Trizec Properties
 As at December 31,
    
    2005
    
    
    2004Trizec Properties  Net AssetsUnder Canadian GAAP
    
    $
    2,082.2
    
    
    
    1,929.8Under U.S. GAAP
    
    
    2,117.1
    
    
    
    1,953.6Difference
    
    $
    34.9
    
    
    
    23.8Adjustments to arrive at U.S. GAAPProperty book values
    
    $
    39.4
    
    
    
    45.1Derivative instruments
    
    
    (3.9
    )
    
    
    (19.6
    )Cumulative
effect of a change in accounting principle
    
    
    
    
    
    
    4.1Other
    
    
    (0.6
    )
    
    
    Adjustments to arrive at US GAAP
    
    
    34.9
    
    
    
    29.6Trizec Properties restatement  adjustment
    
    
    
    
    
    
    (5.8
    )$
    34.9
    
    
    
    23.8Trizec Canadas share
    
    $
    13.3
    
    
    
    11.8
 Trizec Canadas Share of Earnings of Trizec Properties
 For the years ended December 31,
    
    2005
    
    
    2004Trizec Properties  Net IncomeUnder Canadian GAAP
    
    $
    216.1
    
    
    
    113.2Under U.S. GAAP
    
    
    205.4
    
    
    
    101.3Difference
    
    $
    (10.7
    )
    
    
    (11.9
    )Adjustments to arrive at U.S. GAAPProperty book values
    
    $
    (5.7
    )
    
    
    (10.7
    )Derivatives and other
    
    
    (0.9
    )
    
    
    (2.0
    )Cumulative
effect of a change in accounting principle
    
    
    (4.1
    )
    
    
    0.8$
    (10.7
    )
    
    
    (11.9
    )Trizec Canadas share
    
    $
    (4.1
    )
    
    
    (4.2
    )
 a.
    
    Discontinued operations
  Trizec Canada Inc.
    
    3
    
    Reconciliation of Canadian and United States
Generally Accepted Accounting Principles




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##### 



b.
    
    Property book values
  c.
    
    Derivative instruments
   d.
    
    Dilution gains
  e.
    
    Cumulative effect of a change in accounting principle
  Trizec Canada Inc.
    
    4
    
    Reconciliation of Canadian and United States
Generally Accepted Accounting Principles




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##### 



f.
    
    Trizec Properties restatement  adjustment
  2.
    
    Investment in Barrick and exchangeable debentures
    3.
    
    Deferred income taxes
  4.
    
    Other comprehensive income (loss)
  Trizec Canada Inc.
    
    5
    
    Reconciliation of Canadian and United States
Generally Accepted Accounting Principles




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##### 



Trizec Canadas Share of Total Other Comprehensive Income of Trizec Properties
 For the years ended December 31,
    
    2005
    
    
    2004Trizec Properties  Total other comprehensive income
    
    $
    15.7
    
    
    
    1.3Trizec Canadas share
    
    $
    6.1
    
    
    
    0.6
 5.
    
    Newly issued accounting standards and recent pronouncements  U.S. GAAPa.
    
    SFAS NO. 123 (R) Accounting for Stock-Based Compensation
   6.
    
    Newly issued accounting standards and recent pronouncements  Canadian GAAP
 a.
    
    CICA Handbook Section 3855 (CICA 3855) Financial Instruments  Recognition and
Measurement
   b.
    
    CICA Handbook Section 3865 (CICA 3865) Hedges
  Trizec Canada Inc.
    
    6
    
    Reconciliation of Canadian and United States
Generally Accepted Accounting Principles




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##### 



c.
    
    CICA Handbook Section 1530 (CICA 1530)Comprehensive Income
   d.
    
    CICA Handbook Section 3251 (CICA 3251)Equity
   Trizec Canada Inc.
    
    7
    
    Reconciliation of Canadian and United States
Generally Accepted Accounting Principles




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##### 



AUDITORS REPORT
     /s/ PricewaterhouseCoopers LLP
 Chartered Accountants
 COMMENTS BY AUDITORS FOR UNITED STATES READERS ON
CANADA  UNITED STATES REPORTING DIFFERENCE
  /s/ PricewaterhouseCoopers LLP
 Chartered Accountants
 Trizec Canada Inc.
    
    8
    
    Reconciliation of Canadian and United States 
Generally Accepted Accounting Principles