EXHIBIT 99.2

FIRSTSERVICE CORPORATION

Supplement to Management’s Discussion and Analysis of Results of Operations and Financial Condition for the nine-month period ended December 31, 2008

(in US dollars)

October 30, 2009

The Supplement is being filed to reflect the retrospective adoption of new accounting standards for non-controlling interests. This supplement is to FirstService Corporation’s original Management’s Discussion and Analysis of Results of Operations and Financial Condition (the “Original MD&A”) that was filed on March 2, 2009.

The only modifications to the Original MD&A are (i) the changes as a result of the retrospective adoption of the new accounting standards as described below and (ii) to disclose subsequent events that have occurred since the filing of the Original MD&A. This Supplement does not amend or update any other sections of the Original MD&A.

This Supplement should be read together with the restated audited consolidated financial statements and the accompanying notes (the “Restated Financial Statements”) of FirstService Corporation (the “Company” or “FirstService”) for the nine-month period ended December 31, 2008 and the year ended March 31, 2008. The Restated Financial Statements have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”). All financial information herein is presented in United States dollars. This Supplement is current as of October 30, 2009.

Retrospective adoption of new accounting standards

The minority equity positions in the Company’s subsidiaries are now referred to as non-controlling interests (“NCI”). On January 1, 2009, we adopted SFAS No. 160, Non-controlling Interest in Consolidated Financial Statements, an amendment of ARB No. 51, (“SFAS 160”), which affected the guidance in ETIF Topic No. D-98, Classification and Measurement of Redeemable Securities (“EITF D-98”). Except for earnings per share calculations, all presentation and disclosure requirements of SFAS 160 and EITF D-98 were adopted retrospectively, and as a result we recorded an increase to non-controlling interest of $105.7 million and a corresponding decrease to shareholders’ equity as of April 1, 2007. As a result of the retrospective adoption, all periods presented have been restated for the effect of the adoption of SFAS 160 and EITF D-98.

The NCI are considered to be redeemable securities under EITF D-98. Accordingly, the NCI is recorded at the greater of (i) the redemption amount or (ii) the amount initially recorded as NCI at the date of inception of the minority equity position. This amount is recorded in the “mezzanine” section of the balance sheet, outside of shareholders’ equity. Changes in the NCI amount are recognized immediately as they occur.

Results of operations – nine-month period ended December 31, 2008

Net earnings from continuing operations for the nine month period ended December 31, 2008 were adjusted to $26.0 million, relative to $58.5 million in the comparable prior period. A significant component of the decrease versus the comparable period was attributable to an impairment loss on Resolve Business Outsourcing Income Fund securities and the Integrated Security division divestiture bonus. In addition, increases in operating earnings at our Property Services and Residential Property Management segments were more than offset by declines in our Commercial Real Estate Services segment.

Results of operations – year ended March 31, 2008

Net earnings from continuing operations for the year ended March 31, 2008 were adjusted to $52.3 million, up $2.0 million versus the prior year. Increases in our Property Services and Residential Property Management segments were partially offset by declines in our Commercial Real Estate Services segment, resulting in a net increase in net earnings.

Non-GAAP measures

EBITDA is defined as net earnings from continuing operations before income taxes, interest, depreciation and amortization, stock-based compensation expense and other non-cash or non-recurring expenses. The Company uses EBITDA to evaluate operating performance. EBITDA is an integral part of the Company’s planning and reporting systems. Additionally, the Company uses multiples of current and projected EBITDA in conjunction with discounted cash flow models to determine its overall enterprise valuation and to evaluate acquisition targets. The Company believes EBITDA is a reasonable measure of operating performance because of the low capital intensity of its service operations. The Company believes EBITDA is a financial metric used by many investors to compare companies, especially in the services industry, on the basis of operating results and the ability to incur and service debt. EBITDA is not a recognized measure of financial performance under GAAP, and should not be considered as a substitute for operating earnings, net earnings or cash flows from operating activities, as determined in accordance with GAAP. The Company’s method of calculating EBITDA may differ from other issuers and, accordingly, EBITDA may not be comparable to measures used by other issuers. A reconciliation of net earnings from continuing operations to EBITDA appears below.

(in thousands of US$)	Nine months ended December 31						Year ended March 31
	2008			2007			2008
Net earnings from continuing operations	$	26,027		$	58,466		$	52,277
Income taxes		30,878			25,740			17,108
Other income, net		(2,422	)		(3,824	)		(4,650	)
Interest expense, net		8,252			9,543			13,387
Impairment loss on available-for-sale securities		14,680			-			-
Integrated Security division divestiture bonus		5,715			-			-
Operating earnings		83,130			89,925			78,122
Depreciation and amortization		31,746			26,861			37,673
Stock-based compensation expense		2,551			6,444			7,819
Cost containment		6,934			-			-
EBITDA	$	124,361		$	123,230		$	123,614

Selected annual information - last five fiscal periods

(in thousands of US$, except per share amounts)

	Nine months ended December 31				Year ended March 31
	2008		2007		2008			2007		2006		2005
OPERATIONS
Revenues	$	1,322,680	$	1,180,582	$	1,549,713		$	1,152,821	$	918,668	$	508,115
Operating earnings		83,130		89,925		78,122			77,005		61,087		27,838
Net earnings from continuing operations		26,027		58,466		52,277			50,244		38,535		17,616
Net earnings from discontinued operations		48,840		714		(2,829	)		2,290		42,843		11,676
Net earnings		74,867		59,180		49,448			51,181		81,378		29,292

FINANCIAL POSITION
Total assets	$	990,637	$	1,059,461	$	1,089,343		$	816,998	$	711,004	$	626,728
Long-term debt		266,369		331,348		356,030			235,131		248,686		220,015
Shareholders’ equity		199,141		159,667		131,553			159,181		187,215		142,335
Book value per common share		1.87		0.34		-			5.32		6.23		4.71

Quarterly results – fiscal periods ended December 31, 2008 and March 31, 2008

(in thousands of US$, except per share amounts)


Fiscal period		Q1		Q2		Q3			Q4		Period

Nine-month period ended December 31, 2008
Revenues	$	454,769	$	450,051	$	417,860		NA			$	1,322,680
Operating earnings		35,278		35,442		12,410						83,130
Net earnings (loss) from continuing operations		23,837		19,257		(17,067	)					26,027
Net earnings (loss) from discontinued operations		325		67,629		(19,114	)					48,840
Net earnings (loss)		24,162		86,886		(36,181	)					74,867
Net earnings (loss) per common share:
Basic		0.51		2.68		(1.36	)					1.83
Diluted		0.47		2.66		(1.36	)					1.81

Year ended March 31, 2008
Revenues	$	359,661	$	373,287	$	447,634		$	369,131		$	1,549,713
Operating earnings (loss)		33,449		32,833		23,643			(11,803	)		78,122
Net earnings (loss) from continuing operations		20,992		20,818		16,657			(6,190	)		52,277
Net earnings (loss) from discontinued operations		4,002		997		(4,285	)		(3,543	)		(2,829	)
Net earnings (loss)		24,994		21,815		12,372			(9,733	)		49,448
Net earnings (loss) per common share:
Basic		0.61		0.53		0.18			(0.40	)		0.92
Diluted		0.56		0.50		0.15			(0.40	)		0.85


OTHER DATA
EBITDA - Period ended December 31, 2008	$	47,113	$	47,451	$	29,797		NA			$	124,361
EBITDA - Year ended March 31, 2008		41,509		42,760		38,961			384			123,614

Non-controlling interests

In those operations where managers, employees or brokers are also minority owners, the Company is party to shareholders’ agreements. These agreements allow us to “call” the minority position at fair value determined with the use of a formula price, which is in most cases equal to a multiple of trailing two-year average earnings, less debt. Minority owners may also “put” their interest to the Company at the same price, with certain limitations including (i) the inability to “put” more than 50% of their holdings in any 12-month period and (ii) the inability to “put” any holdings for at least one year after the date of our initial acquisition of the business or the date the minority shareholder acquired the stock, as the case may be. The total value of the minority shareholders’ interests (the “redemption amount”), as calculated in accordance with shareholders’ agreements, was as follows.

(in thousands of US$)	December 31, 2008		March 31, 2008

Commercial Real Estate	$	56,020	$	93,879
Residential Property Management		84,458		81,703
Property Services		56,287		46,823
Discontinued operations		-		10,195
Redemption amount	$	196,765	$	232,600

The amount recorded on the balance sheet under the caption “non-controlling interests” is the greater of (i) the redemption amount (as above) or (ii) the amount initially recorded as NCI at the date of inception of the minority equity position. As at December 31, 2008, the NCI recorded on the balance sheet was $196.8 million. The purchase prices of the minority interests may be paid in cash or in Subordinate Voting Shares of FirstService.

Subsequent events

On October 21, 2009, we announced a public offering of 6.50% Convertible Unsecured Subordinated Debentures (the “Debentures”). A preliminary prospectus was filed on October 27, 2009. The offering is in the principal amount of $70.0 million, and we have granted the underwriters an over-allotment option of up to an additional 10% of principal amount of Debentures, which may result in a total offering principal amount of $77.0 million. The price for conversion of the Debentures into Subordinate Voting Shares has been initially set at US$28.00 per share. The Debentures have a maturity date of December 31, 2014. The issuance of the Debentures is expected to be completed in November 2009. The net proceeds of the offering, after underwriters’ fees and other expenses, are expected to be $66.8 million ($73.5 million assuming the over-allotment option is exercised in full) and will be used to repay outstanding indebtedness under our revolving credit facility, which will then be available to be drawn for working capital, acquisitions and/or general corporate purposes.

On October 29, 2009, we acquired 29.99% of the shares of Colliers CRE plc, a commercial real estate services business headquartered in London and operating in the UK, Ireland and Spain. The purchase price of $13.8 million was funded through the revolving credit facility.

Additional information

Additional information regarding the Company, including our Annual Information Form, is available on SEDAR at www.sedar.com.