QuickLinks
 -- Click here to rapidly navigate through this document
 








































 
 

  Exhibit 4.8    
    


 IAMGOLD Corporation

Reconciliation with United States Generally

Accepted Accounting Principles

For the three and nine month periods

ended September 30, 2008 and 2007

(Unaudited)  


IAMGOLD Corporation (the "Company") follows generally accepted accounting principles in Canada ("Canadian GAAP") which are different in
certain respects from those applicable in the United States ("U.S. GAAP") and from practices prescribed by the United States Securities and Exchange Commission ("SEC"). The
interim unaudited consolidated financial statements of the Company as at September 30, 2008 and for the three and nine month period then ended have been prepared in accordance with Canadian
GAAP for interim financial reporting. Such principles differ in certain respects from U.S. GAAP. The effects of these differences on the Company's unaudited interim consolidated financial
statements for the three and nine month periods ended September 30, 2008 and 2007 are provided in the following Canadian GAAP to U.S. GAAP reconciliation which should be read in
conjunction with the Company's unaudited interim consolidated financial statements. 


 Consolidated Statements of Earnings:  



														
	 
	 	Three months ended September 30, 	 	Nine months ended September 30, 	 
	(in 000's except per share amounts)



 
	 	2008 	 	2007 	 	2008 	 	2007 	 
	 
	 	$
	 	$
	 	$
	 	$
	 
	 Net earnings (loss) from continuing operations for the year reported under Canadian GAAP
	 	 	 18,849	 	 	 19,527	 	 	 86,493	 	 	 (50,558	)
	 Earnings from Sadiola and Yatela under Canadian GAAP, using proportionate consolidation (Note 1(a))
	 	 	 (9,727	)	 	 (14,072	)	 	 (35,419	)	 	 (40,113	)
	 Sadiola & Yatela equity earnings under U.S. GAAP (Note 1(a))
	 	 	 8,693	 	 	 13,237	 	 	 34,868	 	 	 35,324	 
	 Reduction of Tarkwa & Damang equity earnings under U.S. GAAP (Note 1(a))
	 	 	 (1,430	)	 	 (2,048	)	 	 (4,141	)	 	 (5,717	)
	 Exploration expensed (Note 1(b))
	 	 	 (9,036	)	 	 (3,933	)	 	 (25,099	)	 	 (17,977	)
	 Amortization of royalty interests (Note 1(c))
	 	 	 29	 	 	 (159	)	 	 89	 	 	 (369	)
	 Warrants (Note 1(d))
	 	 	 980	 	 	 (4,012	)	 	 13,872	 	 	 6,205	 
	 Forward sales liability (Note 1(e))
	 	 	 (45	)	 	 (88	)	 	 (168	)	 	 (292	)
	 Income taxes on the above
	 	 	 2,598	 	 	 1,287	 	 	 7,046	 	 	 4,878	 
	 	 	 	 	 	 	 	 	 	 
	 Net earnings (loss), U.S. GAAP
	 	 	 10,911	 	 	 9,739	 	 	 77,541	 	 	 (68,619	)
	 	 	 	 	 	 	 	 	 	 
	 Basic and diluted net earnings (loss) per share
	 	 	 0.04	 	 	 0.03	 	 	 0.26	 	 	 (0.23	)
	 	 	 	 	 	 	 	 	 	 





1







 

 Consolidated Statements of Comprehensive Income:  


The statements of comprehensive income for the three and nine months ended September 30, 2008 would be presented as follows on a
U.S. GAAP basis: 



														
	 
	 	Three months ended September 30, 	 	Nine months ended September 30, 	 
	(in 000's)



 
	 	2008 	 	2007 	 	2008 	 	2007 	 
	 
	 	$
	 	$
	 	$
	 	$
	 
	 Net earnings (loss), U.S. GAAP
	 	 	 10,911	 	 	 9,739	 	 	 77,541	 	 	 68,619	)
	 Other comprehensive income (loss):
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Change in unrealized gains (losses) on available-for-sale financial assets, net of tax
	 	 	 —	 	 	 (613	)	 	 (3,356	)	 	 (4,139	)
	 Reversal of unrealized unrealized gains (losses) following the sale of available-for-sale financial assets, net of tax
	 	 	 —	 	 	 1,439	 	 	 —	 	 	 1,439	 
	 Cumulative translation adjustment
	 	 	 (5,955	)	 	 11,667	 	 	 (11,563	)	 	 25,922	 
	 	 	 	 	 	 	 	 	 	 
	 Comprehensive income (loss), U.S. GAAP
	 	 	 4,956	 	 	 22,232	 	 	 62,622	 	 	 (45,397	)
	 	 	 	 	 	 	 	 	 	 






 Consolidated Statements of Shareholders' Equity:  


The cumulative effect of the U.S. GAAP differences discussed below on the Company's consolidated shareholders' equity is as follows: 



								
	(in 000's)



 
	 	September 30, 2008 	 	December 31, 2007 	 
	 
	 	$
	 	$
	 
	 Shareholders' equity based on Canadian GAAP
	 	 	 1,836,245	 	 	 1,751,316	 
	 Impact on shareholders' equity of U.S. GAAP adjustments:
	 	 	 	 	 	 	 
	 Accounting for equity investments under U.S. GAAP (Note 1(a))
	 	 	 (31,787	)	 	 (27,096	)
	 Accumulated exploration expensed (Note 1(b))
	 	 	 (56,456	)	 	 (33,795	)
	 Accumulated amortization of royalty interests (Note 1(c))
	 	 	 (1,967	)	 	 (2,058	)
	 Warrants (Note 1(d))
	 	 	 —	 	 	 (13,872	)
	 Forward sales liability (Note 1(e))
	 	 	 85	 	 	 253	 
	 Flow through shares (Note 1(f))
	 	 	 (503	)	 	 —	 
	 Income taxes on items the above
	 	 	 15,335	 	 	 8,291	 
	 	 	 	 	 	 
	 Shareholders' equity based on U.S. GAAP
	 	 	 1,760,952	 	 	 1,683,039	 
	 	 	 	 	 	 





2







 

 Consolidated Statements of Cash Flows:  


Cash flows from operating activities, financing activities and investing activities would be presented as follows on a US GAAP basis: 



														
	 
	 	Three months ended September 30, 	 	Nine months ended September 30, 	 
	(in 000's)



 
	 	2008 	 	2007 	 	2008 	 	2007 	 
	 
	 	$
	 	$
	 	$
	 	$
	 
	 Operating activities
	 	 	 54,769	 	 	 17,076	 	 	 139,115	 	 	 39,440	 
	 Investing activities
	 	 	 (45,655	)	 	 (7,899	)	 	 (99,529	)	 	 (39,088	)
	 Financing Activities
	 	 	 77	 	 	 (1,331	)	 	 (7,414	)	 	 (38,627	)
	 	 	 	 	 	 	 	 	 	 
	 Increase (decrease) in cash and cash equivalents from continuing operations under US GAAP
	 	 	 9,191	 	 	 7,846	 	 	 32,172	 	 	 (38,275	)
	 Increase (decrease) in cash and cash equivalents from discontinued operations
	 	 	 —	 	 	 —	 	 	 —	 	 	 28,451	 
	 	 	 	 	 	 	 	 	 	 
	 Net increase (decrease) in cash and cash equivalents under US GAAP
	 	 	 9,191	 	 	 7,846	 	 	 32,172	 	 	 (9,824	)
	 Cash and cash equivalents, beginning of period under US GAAP
	 	 	 118,674	 	 	 76,305	 	 	 95,693	 	 	 93,975	 
	 	 	 	 	 	 	 	 	 	 
	 Cash and cash equivalents, end of period under US GAAP
	 	 	 127,865	 	 	 84,151	 	 	 127,865	 	 	 84,151	 
	 	 	 	 	 	 	 	 	 	 





3









 




































  Consolidated Balance Sheet:  


The Company's balance sheets prepared under U.S. GAAP are presented below: 



														
	As at September 30, 2008

(in 000's)



 
	 	Cdn GAAP 	 	Equity

Adjustments

Note 1(a) 	 	Other

US GAAP

Adjustments 	 	US GAAP 	 
	 
	 	$
	 	$
	 	$
	 	$
	 
	 ASSETS
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Current Assets:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Cash and cash equivalents
	 	 	 153,270	 	 	 (25,405	)	 	 —	 	 	 127,865	 
	 Gold bullion
	 	 	 70,191	 	 	 —	 	 	 —	 	 	 70,191	 
	 Receivables and other current assets
	 	 	 65,810	 	 	 (17,218	)	 	 —	 	 	 48,592	 
	 Inventories
	 	 	 86,112	 	 	 (16,247	)	 	 —	 	 	 69,865	 
	 Future income tax asset
	 	 	 527	 	 	 —	 	 	 —	 	 	 527	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 375,910	 	 	 (58,870	)	 	 —	 	 	 317,040	 
	 Other long-term assets
	 	 	 114,208	 	 	 (71,857	)	 	 —	 	 	 42,351	 
	 Equity investments
	 	 	 135,705	 	 	 99,092	 	 	 —	 	 	 234,797	 
	 Royalty interests (Note 1(c))
	 	 	 31,280	 	 	 —	 	 	 (1,967	)	 	 29,313	 
	 Mining assets
	 	 	 1,011,615	 	 	 (57,363	)	 	 —	 	 	 954,252	 
	 Exploration and development (Note 1(b))
	 	 	 211,850	 	 	 —	 	 	 (56,456	)	 	 155,394	 
	 Goodwill
	 	 	 361,648	 	 	 —	 	 	 —	 	 	 361,648	 
	 Other intangible assets
	 	 	 12,809	 	 	 —	 	 	 —	 	 	 12,809	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 2,255,025	 	 	 (88,998	)	 	 (58,423	)	 	 2,107,604	 
	 	 	 	 	 	 	 	 	 	 
	 LIABILITIES AND SHAREHOLDERS' EQUITY
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Current liabilities:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Accounts payable and accrued liabilities (Note 1(f))
	 	 	 135,390	 	 	 (33,752	)	 	 503	 	 	 102,141	 
	 Current portion of long-term liabilities (Note 1(e))
	 	 	 24,238	 	 	 (2,445	)	 	 (85	)	 	 21,708	 
	 Deferred revenues
	 	 	 658	 	 	 —	 	 	 —	 	 	 658	 
	 Current liabilities relating to assets held for sale
	 	 	 —	 	 	 —	 	 	 —	 	 	 —	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 160,286	 	 	 (36,197	)	 	 418	 	 	 124,507	 
	 Long-term liabilities:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Long-term debt
	 	 	 5,483	 	 	 —	 	 	 —	 	 	 5,483	 
	 Future income and mining tax liability (Note 1(b),(c))
	 	 	 163,818	 	 	 (5,760	)	 	 (15,335	)	 	 142,721	 
	 Asset retirement obligations
	 	 	 71,750	 	 	 (15,254	)	 	 —	 	 	 56,496	 
	 Accrued benefit liability
	 	 	 6,393	 	 	 —	 	 	 —	 	 	 6,393	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 247,444	 	 	 (21,014	)	 	 (15,335	)	 	 211,095	 
	 Non-controlling interest
	 	 	 11,050	 	 	 —	 	 	 —	 	 	 11,050	 
	 Shareholders' equity:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Common shares
	 	 	 1,656,395	 	 	 —	 	 	 8,999	 	 	 1,665,394	 
	 Contributed surplus (Note 1(d))
	 	 	 36,983	 	 	 —	 	 	 (24,358	)	 	 12,625	 
	 Retained earnings (Note 1(a),(b),(c),(d),(e))
	 	 	 136,046	 	 	 (31,787	)	 	 (29,639	)	 	 74,620	 
	 Accumulated other comprehensive income (loss) (Note 1(b)(f))
	 	 	 6,821	 	 	 —	 	 	 1,492	 	 	 8,313	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 1,836,245	 	 	 (31,787	)	 	 (43,506	)	 	 1,760,952	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 2,255,025	 	 	 (88,998	)	 	 (58,423	)	 	 2,107,604	 
	 	 	 	 	 	 	 	 	 	 





4







 


														
	As at December 31, 2007

(in 000's)



 
	 	Cdn GAAP 	 	Equity

Adjustments

Note 1(a) 	 	Other

US GAAP

Adjustments 	 	US GAAP 	 
	 
	 	$
	 	$
	 	$
	 	$
	 
	 ASSETS
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Current Assets:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Cash and cash equivalents
	 	 	 113,265	 	 	 (17,572	)	 	 —	 	 	 95,693	 
	 Short term deposits
	 	 	 —	 	 	 —	 	 	 —	 	 	 —	 
	 Gold bullion
	 	 	 53,982	 	 	 —	 	 	 —	 	 	 53,982	 
	 Receivables and other current assets
	 	 	 77,221	 	 	 (18,139	)	 	 —	 	 	 59,082	 
	 Inventories
	 	 	 89,230	 	 	 (17,422	)	 	 —	 	 	 71,808	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 333,698	 	 	 (53,133	)	 	 —	 	 	 280,565	 
	 Other long-term assets
	 	 	 88,416	 	 	 (56,919	)	 	 —	 	 	 31,497	 
	 Equity investments (Note 1(a))
	 	 	 112,478	 	 	 91,165	 	 	 —	 	 	 203,643	 
	 Royalty interests (Note 1(c))
	 	 	 34,835	 	 	 —	 	 	 (2,055	)	 	 32,780	 
	 Mining assets
	 	 	 1,023,961	 	 	 (65,737	)	 	 —	 	 	 958,224	 
	 Exploration and development (Note 1(b))
	 	 	 225,473	 	 	 —	 	 	 (33,796	)	 	 191,677	 
	 Goodwill
	 	 	 361,648	 	 	 —	 	 	 —	 	 	 361,648	 
	 Other intangible assets
	 	 	 15,103	 	 	 —	 	 	 —	 	 	 15,103	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 2,195,612	 	 	 (84,624	)	 	 (35,851	)	 	 2,075,137	 
	 	 	 	 	 	 	 	 	 	 
	 LIABILITIES AND SHAREHOLDERS' EQUITY
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Current liabilities:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Accounts payable and accrued liabilities
	 	 	 127,672	 	 	 (36,060	)	 	 (2,147	)	 	 89,465	 
	 Dividends payable
	 	 	 17,625	 	 	 —	 	 	 —	 	 	 17,625	 
	 Current portion of long-term liabilities (Note 1(e))
	 	 	 32,430	 	 	 (1,192	)	 	 (205	)	 	 31,033	 
	 Deferred revenues
	 	 	 —	 	 	 —	 	 	 2,147	 	 	 2,147	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 177,727	 	 	 (37,252	)	 	 (205	)	 	 140,270	 
	 Long-term liabilities:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Long-term debt
	 	 	 5,696	 	 	 —	 	 	 —	 	 	 5,696	 
	 Future income and mining tax liability (Notes 1(b),(c))
	 	 	 157,956	 	 	 (4,517	)	 	 (8,288	)	 	 145,151	 
	 Asset retirement obligations
	 	 	 77,506	 	 	 (15,760	)	 	 —	 	 	 61,746	 
	 Accrued benefit liability
	 	 	 6,360	 	 	 —	 	 	 —	 	 	 6,360	 
	 Warrants (Note 1(d))
	 	 	 —	 	 	 —	 	 	 13,872	 	 	 13,872	 
	 Long-term portion of forward sales liability (Note 1(e))
	 	 	 10,472	 	 	 —	 	 	 (48	)	 	 10,424	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 257,990	 	 	 (20,277	)	 	 5,536	 	 	 243,249	 
	 Non-controlling interest
	 	 	 8,579	 	 	 —	 	 	 —	 	 	 8,579	 
	 Shareholders' equity:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Common shares
	 	 	 1,633,119	 	 	 —	 	 	 9,542	 	 	 1,642,661	 
	 Contributed surplus
	 	 	 20,034	 	 	 —	 	 	 33	 	 	 20,067	 
	 Warrants (Note 1(d))
	 	 	 24,391	 	 	 —	 	 	 (24,391	)	 	 —	 
	 Retained earnings (Notes 1(a),(b),(c),(d),(e))
	 	 	 49,553	 	 	 (27,095	)	 	 (25,378	)	 	 (2,920	)
	 Accumulated other comprehensive income (loss) (Note 1(b))
	 	 	 24,219	 	 	 —	 	 	 (988	)	 	 23,231	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 1,751,316	 	 	 (27,095	)	 	 (41,182	)	 	 1,683,039	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 2,195,612	 	 	 (84,624	)	 	 (35,851	)	 	 2,075,137	 
	 	 	 	 	 	 	 	 	 	 





5









 




































 Note 1 — Notes to the U.S. GAAP Reconciliation:  


	(a)
	Investments in Sadiola, Yatela, Tarkwa and Damang:



Under
Canadian GAAP, the Company accounts for its interests in the Sadiola and Yatela joint ventures by the proportionate consolidation method and its interest in the Tarkwa and Damang mines under the
equity method as working interests. Under U.S. GAAP, the Company is required to equity account for all of its investments and record in earnings its proportionate share of their net income
measured in accordance with U.S. GAAP. 


For
equity method investments, the accounting for these investments represents the aggregate of: (a) capital contributions to the joint ventures, (b) the Company's proportionate share of
the net earnings or loss of the joint ventures, net of amortization of the purchase price adjustment and (c) distributions from the joint ventures. 



For
U.S. GAAP purposes, the Company's share of earnings from its investments have been adjusted for the following items: 


	(i)
	Exploration and development costs:





Under
U.S. GAAP, the Company is required to expense all costs prior to the completion of a definitive feasibility study which establishes proven and probable reserves. Under Canadian GAAP,
costs subsequent to establishing that a property has mineral resources which have the potential of being economically recoverable, are capitalized. A difference in classification on the cash flow
statement also arises as expenditures associated with capitalized exploration costs under Canadian GAAP are treated as an investing activity whereas under U.S. GAAP, such exploration costs are
expensed and shown in the operating section of the cash flow statement.  



	(ii)
	Start-up costs:





U.S. GAAP
requires start-up costs to be expensed as incurred. Canadian GAAP allows start-up costs to be capitalized until commercial production is established. 



	(iii)
	Deferred stripping costs:





Under
Canadian GAAP, the Company capitalized stripping costs incurred during the period relating to betterments at Yatela, Tarkwa and Damang. These costs will be amortized on a
units-of-production basis over the reserves that directly benefit from the stripping activity. Under U.S. GAAP, the Company accounts for stripping costs in conjunction
with Emerging Issues Task Force (EITF) 04-6 "Accounting for Stripping Costs Incurred during Production in the Mining Industry", and Statement of Financial Accounting Standards (SFAS) 151,
Inventories.  



	(iv)
	Future income taxes:





Tax
adjustments related to the above items.  




	(b)
	Exploration expensed:



Under
U.S. GAAP, the Company is required to expense all costs prior to the completion of a definitive feasibility study which establishes proven and probable reserves. Under Canadian GAAP,
costs subsequent to establishing that a property has mineral resources which have the potential of being economically recoverable, are capitalized. A difference in classification on the 



6







 

Note 1 — Notes to the U.S. GAAP Reconciliation: (Continued) 



cash
flow statement also arises as expenditures associated with capitalized exploration costs under Canadian GAAP are treated as an investing activity whereas under U.S. GAAP, such exploration
costs are expensed and shown in the operating section of the cash flow statement.  



	(c)
	Amortization of royalty interests:



Under
Canadian GAAP, depreciation and amortization of royalty interests is calculated on the units-of-production method based upon the estimated mine life corresponding to the
property's reserves and resources whereas under U.S. GAAP, the calculations are made based upon proven and probable mineable reserves.  



	(d)
	Warrants:



Under
Canadian GAAP, warrants to purchase common shares are accounted for as a component of shareholders' equity. Under U.S. GAAP, issuers having warrants with an exercise price denominated in
a currency other than the issuer's functional currency are required to treat the fair value of the warrants as a liability and to mark to market those warrants through net earnings. 


On
August 12, 2008, the remaining outstanding 19,991,000 warrants expired without being exercised and the carrying value of warrants was transferred to contributed surplus under Canadian
GAAP. The liability under US GAAP was extinguished and a non-hedge derivative gain was recognized in the statement of earnings.  



	(e)
	Forward sales liability:



Under
Canadian GAAP, forward gold sales contracts for the Mupane mine are accounted for as normal purchase and sale contracts from the date of acquisition. Under U.S. GAAP, the forward
contracts were accounted for as normal purchase and sale contracts from June 26, 2006, the date documentation of the accounting treatment for these contracts was finalized. Prior to
June 26, 2006, the forward contracts were accounted for on a mark-to-market basis.  



	(f)
	Flow Through Shares:



On
March 5, 2008, the Company issued 928,962 flow-through common shares for the Westwood project totaling C$8,500,000 which will have to be spent in fiscal 2008. Under
Canadian GAAP, flow-through shares are recorded at their face value, net of related issuance costs. When eligible expenditures are made, the carrying value of these expenditures may exceed
their tax value due to the renunciation of the tax benefit by the Company. The tax effect of this temporary difference is recorded as a cost of issuing the shares. 


The
Financial Accounting Standards Board ("FASB") staff has taken the view that under SFAS No. 109, Accounting for Income Taxes, the proceeds from issuance should be allocated between
the offering of shares and the sale of tax benefits. The allocation is made based on the difference between the quoted price of the existing shares and the amount the investor pays for the shares. A
liability is recognized for this difference. The liability is reversed when tax benefits are renounced and a deferred tax liability is recognized at that time. Income tax expense is the difference
between the amount of deferred tax liability and the liability recognized on issuance. 



7







 

Note 2 — United States accounting pronouncements adopted effective January 1, 2008:  



	(i)
	Fair Value Measurements:




In
September 2006, the FASB issued SFAS 157 "Fair Value Measurements" that provides enhanced guidance for using fair value to measure assets and liabilities. SFAS 157 is meant to
ensure that the measurement of fair value is more comparable and consistent, and improve disclosure about fair value measures. As a result of SFAS 157, there is now a common definition of fair
value to be used throughout U.S. GAAP. SFAS 157 applies whenever U.S. GAAP requires (or permits) measurement of assets or liabilities at fair value. SFAS 157 does
not address when the use of fair value measurements is required. 


In
February 2008, the FASB issued FSP FAS157-2, which delays the effective date of SFAS 157 for nonfinancial assets or liabilities that are not required or permitted to be
measured at fair value on a recurring basis to fiscal years beginning after November 15, 2008, and interim periods within those years. The Company is currently evaluating the impact that FSP
FAS 157-2 may have on its financial statements. 


Effective
January 1, 2008, the Company adopted SFAS 157 for financial assets and liabilities recognized at fair value on a recurring basis. The adoption of SFAS 157 did not change
the valuation techniques that the Company uses to value the affected assets and liabilities. SFAS 157 specifies a valuation hierarchy based on whether the inputs to valuation techniques are
observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's own assumptions. These two types of inputs have
created the following fair value hierarchy: 


	•
	Level 1: Quoted prices for identical instruments in active markets;   



	•
	Level 2: Quoted prices for similar instruments in active markets, quoted prices for identical or similar
instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and  



	•
	Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value
drivers are unobservable. 






The
fair values of the Company's financial assets at September 30, 2008 are: 




														
	(in 000's)



 
	 	Quoted Prices in

Active Markets for

Identical Assets

(Level 1) 	 	Significant

Other

Observable

Inputs

(Level 2) 	 	Significant

Unobservable

Inputs

(Level 3) 	 	Aggregate

Fair Value 	 
	 
	 	$
	 	$
	 	$
	 	$
	 
	 Held for trading:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Warrants included in marketable securities
	 	 	—	 	 	160	 	 	—	 	 	160	 
	 Available-for-sale:
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Marketable securities, excluding warrants
	 	 	5,627	 	 	—	 	 	—	 	 	5,627	 
	 	 	 	 	 	 	 	 	 	 
	 Total
	 	 	 5,627	 	 	 160	 	 	 —	 	 	 5,787	 
	 	 	 	 	 	 	 	 	 	 





8







 

Note 2 — United States accounting pronouncements adopted effective January 1, 2008: (Continued) 




Valuation Techniques:


Marketable Securities, excluding warrants:


The
fair value of available-for-sale marketable securities, excluding warrants, is determined based on a market approach reflecting the closing price of each particular
security at the balance sheet date. The closing price is a quoted market price obtained from the exchange that is the principal active market for that particular security and is therefore classified
within Level 1 of the fair value hierarchy established by SFAS 157. 


Warrants:



The
fair value of certain warrants included in marketable securities is obtained through the use of Black-Scholes pricing models which uses share price inputs and volatility measurements and are
therefore classified within Level 2 of the fair value hierarchy established by SFAS 157.  



	(ii)
	Fair Value Option for financial assets and financial liabilities:





In
February 2007, the FASB issued SFAS 159 "The Fair Value Option for Financial Assets and Financial Liabilities", which allows for an irrevocable option, the Fair Value Option (FVO), to
carry eligible financial assets and liabilities at fair value, with the election made on an instrument-by-instrument basis. Changes in fair value for these instruments would be
recorded in earnings. The objective of SFAS 159 is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring
related assets and liabilities differently without having to apply complex hedge accounting provisions. 


Effective
January 1, 2008, the Company adopted the provisions of FAS 159 and did not adopt the FVO on its eligible financial instruments, which included equity investments and long term
debt, existing as at January 1, 2008. 





Note 3 — Recently issued accounting pronouncements:  



	(i)
	Determination of the useful life of intangible assets:





In
April 2008, the FASB issued FSP No. FAS 142-3, "Determination of the Useful Life of Intangible Assets" ("FSP 142-3") which amends the factors that
should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under FASB Statement No. 142, "Goodwill and Other
Intangible Assets" ("FAS 142"). The intent of this FSP is to improve the consistency between the useful life of a recognized intangible asset under FAS 142 and the period of expected
cash flows used to measure the fair value of the asset under FASB Statement No. 141, "Business Combinations" ("SFAS 141"). FSP 142-3 is effective for the fiscal year
beginning January 1, 2009 and will be applied prospectively to intangible assets acquired after the effective date. The Company is currently evaluating the impact that the adoption of FSP
142-3 may have on its consolidated financial statements. 




9







 

Note 3 — Recently issued accounting pronouncements: (Continued) 





	(ii)
	Determining Whether an Instrument (or Embedded Feature) is Indexed to an Entity's Own Stock:





In
March 2008, the FASB approved the issuance of Emerging Issues Task Force Issue No. 07-5, "Determining Whether an Instrument (or Embedded Feature) is Indexed to an
Entity's Own Stock". EITF 07-5 defines when adjustment features within contracts are considered to be equity-indexed and will be effective for the Company in the first
quarter of fiscal 2009. The Company is currently evaluating the impact that the adoption of EITF 07-5 may have on its consolidated financial statements. 



	(iii)
	Accounting for convertible debt instruments that may be settled in cash upon conversion:





In
May 2008, FASB issued FSP No. APB 14-1, "Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement),"
which will change the accounting treatment for convertible debt securities that the issuer may settle fully or partially in cash. FSP No. APB 14-1 requires bifurcation of
convertible debt instruments into a debt component that is initially recorded at fair value and an equity component, which represents the difference between the initial proceeds from issuance of the
instrument and the fair value allocated to the debt component. The debt component is subsequently accreted (as a component of interest expense) to par value over its expected life. FSP No.
APB 14-1 is effective for fiscal years and interim periods beginning after December 15, 2008, and must be retrospectively applied to all prior periods presented, even
if an instrument has matured, converted, or otherwise been extinguished as of the FSP's effective date. The Company is currently evaluating the impact that the adoption of FSP No.
APB 14-1 may have on its consolidated financial statements.  



	(iv)
	Hierarchy of generally accepted accounting principles:





In
May 2008, FASB issued SFAS No. 162, "The Hierarchy of Generally Accepted Accounting Principles," which identifies the sources of accounting and the framework for selecting the
principles to be used in the preparation of financial statements of nongovernmental entities that are presented in conformity with U.S. GAAP. SFAS No. 162 became effective on
November 15, 2008. The adoption of SFAS No. 162 is not expected to result in a change in the Company's accounting practices.  



	(v)
	Disclosures about derivative instruments and hedging activities:





In
March 2008, FASB issued SFAS No. 161, "Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement
No. 133." SFAS No. 161 amends the disclosure requirements for derivative instruments and hedging activities contained in SFAS No. 133, "Accounting for Derivative
Instruments and Hedging Activities." Under SFAS No. 161, entities are required to provide enhanced disclosures about (i) how and why an entity uses derivative instruments,
(ii) how derivative instruments and related hedged items are accounted for under SFAS No. 133 and related interpretations and (iii) how derivative instruments and
related hedged items affect an entity's financial position, financial performance and cash flows. SFAS No. 161 is effective for fiscal years and interim periods beginning after
November 15, 2008, with early application encouraged. SFAS No. 161 encourages, but does not require disclosure for earlier periods presented 




10







 

Note 3 — Recently issued accounting pronouncements: (Continued) 




for
comparative purposes at initial adoption. The adoption of SFAS No. 161 will not affect the Company's accounting for derivative financial instruments; however, the Company is
currently evaluating the impact on its related disclosures.  



	(vi)
	Non-controlling interests in consolidated financial statements:





The
FASB issued SFAS 160, "Non-controlling Interests in Consolidated Financial Statements" which amends ARB 51 to establish accounting and reporting standards for a
non-controlling interest in a subsidiary and for deconsolidation of a subsidiary. This pronouncement will apply prospectively to business combinations for which the acquisition date is on
or after the beginning of the first annual reporting period beginning on or after December 15, 2008. The Company will adopt this pronouncement accordingly.  



	(vii)
	Business combinations:





The
FASB issued, SFAS 141(R), "Business Combinations". This pronouncement retains the fundamental requirements in SFAS 141 that the acquisition method of accounting be used for all
business combinations and for an acquirer to be identified for each business combination. The following are some of the significant changes this new statement makes to how the acquisition method
is applied: 


	•
	Measuring the assets acquired, the liabilities assumed, and any non-controlling interest at their
fair values;   



	•
	Recognizing assets acquired and liabilities assumed arising from contingencies;   



	•
	Recognizing contingent consideration at the acquisition date, measured at its fair value;  



	•
	Recognizing a gain in the event of a bargain purchase (i.e. previously negative goodwill). 




This
pronouncement will apply prospectively to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after
December 15, 2008. The Company will adopt this pronouncement accordingly. 




11















QuickLinks



Exhibit 4.8