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Subject :

Accounting

CASE 2-9 VIEW OF FOREIGN FINANCIAL STATEMENTS REPORTED TO THE SEC

Information reported in the Enbridge, Inc., 2008 annual reports follows:

ENBRIDGE, INC.

Corporate Head Office

3000 Fifth Avenue Place

Calgary, Alberta, Canada T2P3L8

Enbridge is traded on the New York Stock Exchange in the United States under the symbol ''ENB.''

Management's Discussion and Analysis (In Part)

• Millions of Canadian dollars
• The Canadian Accounting Standards Board confirmed in February 2008 that publicly accountable entities will be required to adopt International Financial Reporting Standards (IFRS) for interim and annual financial statements on January 1, 2011. The company, as an SEC registrant, has the option to use U.S. GAAP instead of IFTS. During the fourth quarter 2008, the company chose IFRS since it believes that IFRS will provide a more transparent and appropriate presentation result, and it would avoid the cost of a second conversion when the United States converges with IFRS on or about 2014 as planned.

Management Report (In Part)

The consolidated financial statements have been prepared in accordance with Canadian generally accepted accounting principles and necessarily include amounts that reflect management's judgment and best estimates. ''Management assessed the effectiveness of the Company's internal control over financial reporting as of December 31, 2008, based on the framework established in Internal Control-Integrated Framework issued by the sponsoring organizations of the Treadway Commission (COSO). Price Waterhouse Coopers LLP, independent auditors appointed by the shareholders of the company, conducts an examination of the consolidated financial statements in accordance with Canadian generally accepted auditing standards.

United States Accounting Principles (In Part)

These consolidated financial statements have been prepared in accordance with Canadian GAAP. The effects of significant differences between Canadian GAAP and U.S. GAAP for the Company are described below

Earnings and Comprehensive Income

Year ended December 31, 2008 2007 2006

(millions of Canadian dollars, except per share amounts)

Earnings under Canadian and U.S. GAAP Applicable

to Common Shareholders 1,320.8 700.2 615.4

Earnings under Canadian and U.S. GAAP 1,327.7 707.1 622.3

Other comprehensive income/(loss) under Canadian

GAAP 317.8 (197.4) 36.0

Underfunded pension adjustment (net of tax) (56.6) 23.3 -

Unrealized net gain/(loss) on cash flow hedges - - (64.2)

Comprehensive income under U.S. GAAP 1,588.9 533.0 594.1

Earnings per common share under U.S. GAAP 3.67 1.97 1.81

Diluted earnings per common share under U.S. GAAP 3.64 1.95 1.79

Note: There was significant additional disclosure of differences between Canadian GAAP and U.S. GAAP.

Required

a. Were Canadian or U.S. dollars used for the financial statements? Will this be likely to continue under IFRS?

b. What guided the company's internal control? Will this likely continue under IFRS?

c. What auditing standards were used for the consolidated financial statements? Will this likely continue under IFRS?

d. Significant differences were described between Canadian GAAP and U.S. GAAP. Will this type of disclosure likely continue under IFRS?