2008-04-11_REPORT - M1980244

• Permit No: M1980244
• IBM Index Class Name: REPORT
• Doc Date: 4/11/2008
• Doc Name: Annual Fee/Report/Map
• From: CC&V
• To: DRMS
• Permit Index Doc Type: Annual Fee/Report
• Email Name: AJW
• Media Type: D
• Archive: No

CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement of Changes in Shareholders' Equity
For the year ended October 31 (S millions) 2007 2006 2005
Preferred shares (Note 14)
Balance at beginning of year S 600 $ 600 $ 300
Issued 1,035 - 300
Balance at end of year 1,635 600 600
Common shares and contributed surplus
Common shares (Note 14):
Balance at beginning of year
Issued
Purchased for cancellation
Balance at end of year
Contributed surplus: Fair value of stock options (Note 16)
Total
Retained earnings
Balance at beginning of year
Cumulative effect of adopting new accounting policies
Net income
Dividends: Preferred
Common
Purchase of shares
Other
Balance at end of year
Accumulated other comprehensive income (loss)"'
Balance at beginning of year
Cumulative effect of adopting new accounting policies
Other comprehensive income (loss) (Note 15)
Balance at end of year
Total shareholders' equity at end of year
Consolidated Statement of Comprehensive Income"'
3,425 3,316 3,228
184 135 172
(43) (26) (84)
3,566 3,425 3,316
- - 1
3,566 3,425 3,317
15,843 14,126 13,239

15,782 14,101 13,239
4,045 3,579 3,209
(51) (30) (25)
(1,720) (1,483) (1,317)
(586) (324) (973)
(10) - (7)
17,460 15,843 14,126
(2,321) (1,961) (1,783)
683 - -
(2,219) (360) (178)
(3,857) (2,321) (1,961)
S 18,804 $ 17,547 $ 16,082
For the year ended OROber 31 (f millions) 2007 2006 2005
Comprehensive income
Net income S 4,045 $ 3,579 $ 3,209
Other comprehensive income (loss), net of income taxes (Note 15):
Net change in unrealized foreign currency translation losses (2,228) (360) (178)
Net change in unrealized gains on available-for-sale securities (67) - -
Net change in gains (losses) on derivative instruments designated as cash flow hedges 76 - -
Other comprehensive income (loss) (2,219) (360) (178)
Comprehensive income S 1,826 $ 3,219 $ 3,031
Certain comparative amounts have been reclassified ro conform with current period presentation.
(1) Refer to Note t for impact of new accounting policies as a result of new accounting standards related to financial instruments adopted in 2007.
(2) Represents the cumulative effect of adopting a new accounting policy as a result of a new accounting standard related to stock-based compensation for employees
eligible to retire before the vesting date [refer to Note 1, Stock-based compensation).
The accompanying notes are an integral part of these consolidated financial statements.
98 2007 SCOTIABANK ANNUAL REPORT