Question: Airbus SE, previously known as European Aeronautic

> How does a statement of cash flows prepared using the indirect method differ from one prepared using the direct method?

> Southern Corporation's adjusted trial balance contained the following accounts at December 31, 2020: Retained Earnings $120,000; Common Shares $700,000; Bonds Payable $100,000; Contributed Surplus $200,000; Preferred Shares $50,000; Goodwill $55,000; and

> Included in Cellin Limited's December 31, 2020 trial balance are the following accounts: Accounts Payable $251,000; Obligations under Lease $175,000; Unearned Revenue $141,000; Bonds Payable $480,000 (due October 31, 2032); Salaries and Wages Payable $12

> James Halabi is a financial executive with McDowell Enterprises. Although James has not had any formal training in finance or accounting, he has a "good sense" for numbers and has helped the company grow from a very small company ($500,000 in sales) to a

> Pine Corporation's adjusted trial balance contained the following asset accounts at December 31, 2020: Prepaid Rent $22,000; Goodwill $50,000; Franchise Fees Receivable $2,000; Intangible Assets- Franchises $47,000; Intangible Assets-Patents $33,000; and

> Lowell Corp.'s December 31, 2020 trial balance includes the following accounts: Inventory $120,000; Buildings $207,000; Accumulated Depreciation-Equipment $19,000; Equipment $190,000; Land Held for Speculation $46,000; Accumulated Depreciation-Buildings

> The following accounts are in Tan Limited's December 31, 2020 trial balance: Prepaid Rent $1,600; FV-OCI (Fair Value-Other Comprehensive Income) Investments $62,000; Unearned Revenue $7,000; Land Held for Speculation $119,000; and Goodwill $45,000. Prepa

> Kahnert Corporation's adjusted trial balance contained the following asset accounts at December 31, 2020: Cash $3,000; Treasury Bills (with original maturity of three months) $4,000; Land $60,000; Intangible Assets-Patents $12,500; Accounts Receivable $9

> Midwest Co. reported the following items in the most recent year: a. Calculate net cash provided (used) by operating activities, the net change in cash during the year, and free cash flow. Dividends paid related to the company's common shares and are tre

> Miller Ltd. engaged in the following cash transactions during 2020: Miller prepares financial statements in accordance with ASPE. Calculate the net cash provided (used) by investing activities.

> At December 31, 2020, the equity investments of Wang Inc. that were accounted for using the FV-OCI model without recycling were as follows: Because of a change in relationship with Ahn Inc., Wang Inc. sold its investment in Ahn for $153,300 on January 20

> Martz Inc. has a customer loyalty program that rewards a customer with one customer loyalty point for every $100 of purchases. Each point is redeemable for a $3 discount on any future purchases. On July 2, 2020, customers purchase products for $300,000 (

> PP&E-Transition to IFRS Howeven Inc. is a private company that expects to "go public" and become publicly traded soon. Accordingly, it expects to be adopting IFRS by 2020. It is a manufacturing company with extensive investments in property, plant, a

> Nickel Strike Mines is a nickel mining company with mines in northern Ontario, Colombia, and Australia.It is a publicly traded company and follows IFRS, and has historically followed industry practice and used units of production as its depreciation poli

> Canadian National Railway Company and Canadian Pacific Railway Limited Two well-known company names in the transportation industry in Canada are Canadian National Railway Company and Canadian Pacific Railway Limited. Go to either SEDAR (www.sedar.com) or

> Canadian Tire Corporation, Limited is one of Canada's best-known retailers. Obtain a copy of Canadian Tire's financial statements for each of the years ended December 30, 2017, and December 31, 2016, through SEDAR (www.sedar.com) or on the company's webs

> Brookfield Asset Management Inc. is a global publicly traded Canadian company. Obtain a copy of Brookfield's financial statements for the year ended December 31, 2017, through SEDAR (www.sedar.com) or on the company's website. Instructions Review the n

> From the SEDAR website (www.sedar.com) choose one company from each of four different industry classifications. Choose from a variety of industries, such as real estate (such as Crombie Real Estate Investment Trust), food stores-merchandising (such as Lo

> Echo Corp., a retail propane gas distributor, has increased its annual sales volume to a level that is three times greater than the annual sales of a dealer that it purchased in 2019 in order to begin operations. Echo's board of directors recently receiv

> Assume that Ames Company's net income of $151,000 in BE5.16 was based on sales of $600,000, cost of goods sold of $200,000, salaries and wages of $157 ,000, depreciation expense of $44,000, and income tax expense of $48 ,000. Prepare the cash flows from

> Kolber Manufacturing Limited designs, manufactures, and distributes safety boots. In January 2020, Kolber purchased another business that manufactures and distributes safety shoes, to complement its existing business. The total purchase price was $10 mil

> Nike, Inc. has had endorsement contracts with some of the world's best-known golfers. For example, Nike has been able to gain the rights to use top golfers' names in advertising promotions and on Nike Golf apparel, footwear, golf balls, and golf equipmen

> Access the annual report for British Airways Plc (BA) for the year ended December 31, 2017, from its parent company's website (www.iagshares.com). British Airways is now a part of the International Airlines Group. Use the amounts in and notes to BA's gro

> Air France-KLM Group and Air Canada are both global airline companies. Both companies report under IFRS. Access the financial statements of Air France-KLM for its year ended December 31, 2017, and Air Canada for the same period, from each company's websi

> When Canadian public companies were required to apply IFRS beginning in 2011, one of the major issues faced by some of them, particularly those whose revenues were regulated by an independent body, concerned the accounting for regulatory assets. This iss

> Hudson's Bay Company's financial statements for its year ended February 3, 2018 (fiscal 2017) can be found at the end of this book. Instructions Refer to the company's financial statements and accompanying notes to answer these questions. a. What busine

> The partner in charge of the James Spencer Corporation audit comes by your desk and leaves a letter he has started to the CEO and a copy of the statement of cash flows for the year ended December 31, 2020. Because he must leave on an emergency, he asks y

> The financial statements of Quebecor Inc. and Thomson Reuters Corporation for their fiscal years ended December 31, 2017, can be found on SEDAR (www.sedar.com) or the companies' websites. Instructions a. What business is Quebecor Inc. in? Is Thomson Re

> Obtain the 2001 and 2017 annual reports of Goldcorp Inc. from SEDAR (www.sedar.com). Instructions Read the annual report material leading up to the financial statement section and answer the following questions: a. Explain how the company's business cha

> The audited annual financial statements of Maple Leaf Foods Inc. for the year ended December 31, 2017, can be found on the company's website or from SEDAR (www.sedar.com). Instructions a. Calculate the liquidity and coverage (solvency) ratios identified

> Ames Company reported 2020 net income of $151,000. During 2020, accounts receivable increased by $15,000 and accounts payable increased by $9 ,000. Depreciation expense was $44,000. Prepare the cash flows from operating activities section of the statemen

> The financial statements for Bombardier Inc. for the year ended December 31, 2017, can be found on the company's website or from SEDAR (www.sedar.com). Instructions a. What form of presentation does the company use in preparing its balance sheet? b. Calc

> The financial statements of Hudson's Bay Company for its year ended February 3, 2018 (fiscal 2017) appear at the end of this book. Instructions a. What alternative formats could the company have used for its balance sheet? Which format did it adopt? b.

> Access the financial statements of BHP Billiton plc (BHP) for the company's year ended June 30, 2017. Also access the financial statements of Newfield Exploration for the company's year ended December 31, 2017. These are available at the companies' websi

> Access the financial statements of Brookfield Asset Management Inc. for the company's year ended December 31, 2017, contained in the company's annual report, available from the company's website (or www.sedar.com). Review the information that is provided

> Access the annual financial statements of Stora Enso Oyj for the company's year ended December 31, 2017. These are available at the company's website, www.storaenso.com. Review the information that is provided and answer the following questions about the

> Access the financial statements of Magna International Inc. for the company's year ended December 31, 2017. These are available at www.sedar.com or the company's website. Review the information that is provided and answer the following questions about th

> From SEDAR (www.sedar.com) or the company websites, access the financial statements of Loblaw Companies Limited for its year ended December 30, 2017, and Empire Company Limited for its year ended May 6, 2017. Review the financial statements and answer th

> Access the annual financial statements of Andrew Peller Limited for the year ended March 31, 2017, on SEDAR (www.sedar.com) or the company's website (www.andrewpeller.com). Instructions Refer to these financial statements and the accompanying notes to a

> Refer to the 2016 and 2017 annual reports of Canadian Tire Corporation, Limited, available at SEDAR (www.sedar.com) or the company's website (www.canadiantire.ca). Note that the company provides a 10-year financial review at the end of its 2016 annual re

> Stora Enso Oyj described itself in its annual report as the "leading provider of renewable solutions in packaging, biomaterials, wooden constructions, and paper globally." Instructions Access the financial statements in the financial report of Stora Ens

> Healey Corporation's statement of financial position as at December 31, 2020, showed the following amounts: Cash $100; Accounts Receivable $600; Land $1,000; Accounts Payable $300; Bonds Payable $500; Common Shares $400; and Retained Earnings $500. Heale

> Hudson's Bay Company (HBC), as described in Note 1 to its financial statements, is a Canadian corporation that "owns and operates department stores in Canada, United States and .. . Europe." HBC's financial statements for its annual period ended February

> From SEDAR (www.sedar.com) or the company websites, access the financial statements of Loblaw Companies Limited for its year ended December 30, 2017, and of Empire Company Limited for its year ended May 6, 2017. Review the financial statements and answer

> Soon after beginning the year-end audit work on March 10 for the 2020 year end at Arkin Corp., the auditor has the following conversation with the controller: Controller: The year ending March 31, 2020, should be our most profitable in history and, becau

> Canadian Tire Corporation, Limited is one of Canada's best-known retailers. The company operates 501 "hard-goods" retail stores through associate dealers, 386 corporate and franchise stores under its subsidiary Mark's Work Wear house, 298 independently o

> Maple Leaf Foods Inc. Access the annual financial statements for Maple Leaf Foods Inc. for the year ended December 31, 2017. These statements are available from the company's website or from SEDAR (www.sedar.com). Instructions a. Explain the securitizat

> Coca-Cola Company and PepsiCo are two of the best-known companies worldwide. Their 2017 financial statements can be found in the investor information sections of their company websites: www.coca-colacompany.com/investors/archives-annual-other-reports an

> Access the financial statements of The Procter & Gamble Company (P&G) for its year ended June 30, 2017, from the company's website (www.pginvestor.com). Instructions Refer to P&G's financial statements and the accompanying notes to answer the following

> Access the financial statements of both BCE Inc. and TELUS Corporation for their years ended December 31, 2017, from either the companies' websites or SEDAR (www.sedar.com). Instructions Using the financial statements for BCE and TELUS, answer the follo

> Refer to the annual financial statements of Hudson's Bay Company for its fiscal year ended February 3, 2018 (fiscal 2017), found at the end of the book. Instructions a. Review Hudson's Bay's balance sheet. Identify all financial investments that are rep

> Newvo Ltd. shows on its statement of financial position a patent. At its year end of October 31, 2018, the caption read Patent (net) $66,000 and at its year end of October 31, 2019, the caption read Patent (net) $40,000. Newvo's recorded amortization on

> Medici Patriarchs purchased the following investments during 2020: a. 1,000 shares of Private Limited, a start-up company. The value of this investment was based on an internally developed model. b. 5,000 shares of CIBC, a public company listed on the TS

> Gain access to the 2017 financial statements of Potash Corporation of Saskatchewan from the company's website or www.sedar.com. On January l, 2018, PotashCorp and Agrium completed a merger and formed a new company called Nutrien Ltd. You can still access

> Refer to the 2017 financial statements and accompanying notes of Royal Bank of Canada (RBC) that are found on the company's website (www.royalbank.ca) or at www.sedar.com. Instructions a. What percentage of RBC's total assets is held in investments (at O

> Obtain the 2017 financial statements of Teck Resources Limited from SEDAR (www.sedar.com). Instructions a. Using the notes to the consolidated financial statements, determine the company's revenue recognition policy. Comment on whether the company uses

> The Canadian Coalition for Good Governance (www.ccgg.ca) was formed in 2002 and represents a significant number of institutional investors in Canada. Instructions a. What is the purpose of the CCGG? b. How does an institutional investor differ from other

> Materiality has always been an elusive concept in IFRS. It is defined in a general sense, but, in the past, there has been little guidance to help preparers and others apply the concept. For this reason, the IASB decided it was important to issue a Pract

> In financial reporting, the goal is to provide useful information to users of the financial statements such as investors. Investors often use numbers from the financial statements (and other sources) to calculate financial statement ratios. For instance,

> An excerpt from Section 10.2 of the Management Discussion and Analysis in the 2017 annual report of BCE Inc. is shown below. The excerpt shows summarized financial information, including calculations of earnings before interest, tax, depreciation, and am

> Use the annual reports and/or the audited annual financial statements of Brookfield Office Properties Inc. for the year ended December 31, 2015, and of Mainstreet Equity Corp. for the year ended September 30, 2016, to answer the following questions. Thes

> Obtain the 2017 annual report for the Royal Bank of Canada from the company's website or from SEDAR (www.sedar.com). Note that financial reporting for Canadian banks is also constrained by the Bank Act and monitored by the Office of the Superintendent of

> Locate the audited consolidated financial statements (including the accompanying notes) of Kirkland Lake Gold Ltd. for its year ended December 31, 2017 (available at www.sedar.com). Instructions Refer to the statements and notes to answer the following

> Agnu Inc. shows on its statement of financial position its investments accounted for as FV-OCI investments. At its year end of May 31, 2018, the balance in the FV-OCI Investments account was $96,000 and at its year end of May 31, 2019, the balance was $1

> TripAdvisor Inc. describes itself as an online travel company, which empowers users to plan and book the perfect trip. Among other things, it allows users to post reviews of their visits including visits to restaurants. You are currently a financial anal

> The "Internet of things" refers to physical devices such as phones, cars, cameras, fitness tracking devices, and other sensing devices that capture and track data through the Internet. Such devices collect a significant amount of data. For instance, most

> Obtain the 2017 annual report for Maple Leaf Foods Inc. from the company's website or from SEDAR (www.sedar.com). The company's note disclosure (Note 2) on "Basis of preparation" for (d) Use of Estimates and Judgments, for its biological assets is reprod

> The financial statements of the Hudson's Bay Company are presented at the end of the book. Complete the following instructions by referring to these financial statements and the accompanying notes. Instructions a. What is the company's basis of presenta

> In its 2017 financial statements (Note 3), Air Canada has disclosed its critical estimates and judgements used in preparing the financial statements. Instructions Access the 2017 audited annual financial statements for Air Canada for the year ended Dec

> Refer to the scenario in RA2.7 regarding Bancroft Corporation (BC). Jason has been reading lately about artificial intelligence and big data. He notes during a quick Internet search that a company called Blue J Legal has created a product that scans and

> Bancroft Corporation (BC) has just completed its analysis of the income taxes that it believes it will have to pay to the government either this year or in future years. Although he feels that the final estimate of income taxes payable is probably fine,

> Pascale Corp. has the following securities (all purchased in 2020) in its investment portfolio on December 31, 2020: 2,500 Anderson Corp. common shares, which cost $48,750; 10,000 Munter Ltd. common shares, which cost $580,000; and 6,000 King Corp. prefe

> The following amortization schedule is for Flagg Ltd.'s investment in Spangler Corp.'s $100,000, five-year bonds with a 7% interest rate and a 5% yield, which were purchased on December 31, 2019, for $108,660: The following schedule presents a comparison

> The following information relates to the 2020 debt and equity investment transactions of Wildcat Ltd., a publicly accountable Canadian corporation. All of the investments were acquired for trading purposes and accounted for using the FV-NI model, with al

> Use the information for Odyssey Ltd. in BEll.5. (a) Calculate the 2020 depreciation expense using the sum-of-the-years'-digits method. (b) Calculate the 2020 depreciation expense using the sum-of-the-years'-digits method, but assuming the machinery was p

> MacAskill Corp. has the following portfolio of securities acquired for trading purposes and accounted for using the FV-NI model at September 30, 2020, the end of the company's third quarter: On October 8, 2020, the Yuen shares were sold for $4.30 per sha

> Use the data provided in Pl2.8. Assume instead that Meridan Golf and Sports is a public company. The relevant information for the impairment test on December 31, 2022, is as follows: Instructions Provide the calculations for the impairment test and an

> Meridan Golf and Sports was formed on July 1, 2020, when Steve Powerdriver purchased Old Master Golf Corporation. Old Master provides video golf instruction at kiosks in shopping malls. Powerdriver's plan is to make the instruction business part of his

> In 2020, Aquaculture Incorporated applied for several commercial fishing licences for its commercial fishing vessels. The application was successful and on January 2, 2020, Aquaculture was granted 22 commercial fishing licences for a registration fee of

> During 2018, Medicine Hat Tools Ltd., a Canadian public company, purchased a building site for its product development laboratory at a cost of $61,000. Construction of the building started in 2018. The building was completed in late December 2019 at a co

> Fields Laboratories holds a valuable patent (No. 758-6002-lA) on a precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products

> Monsecours Corp., a public company incorporated on June 28, 2019, set up a single account for all of its intangible assets. The following summary discloses the debit entries that were recorded during 2019 and 2020 in that account: The new business starte

> Information for Naples Corporation's intangible assets follows: 1. On January 1, 2020, Naples signed an agreement to operate as a franchisee of Copy Service Inc., for an initial franchise fee of $75,000. Of this amount, $35,000 was paid when the agreeme

> On July 31, 2020, Mexico Company paid $3 million to acquire all of the common shares of Conchita Incorporated, which became a division of Mexico. Conchita reported the following statement of financial position at the time of the acquisition. It was dete

> The president of Plain Corp., Joyce Lima, is thinking of purchasing Balloon Bunch Corporation. She thinks that the offer sounds fair but she wants to consult a professional accountant to be sure. Balloon Bunch Corporation is asking for $85,000 in excess

> Use the information for Odyssey Ltd. in BEll.5. (a) Calculate the 2020 depreciation expense using the double-declining-balance method. (b) Calculate the 2021 depreciation expense using the double-declining-balance method, but assuming the machinery was p

> Macho Inc. has recently become interested in acquiring a South American plant to handle many of its production functions in that market. One possible candidate is De Fuentes SA, a closely held corporation, whose owners have decided to sell their business

> On September 1, 2020, Madonna Lisa Corporation, a public company, acquired Jaromil Enterprises for a cash payment of $763,000. At the time of purchase, Jaromil's statement of financial position showed assets of $850,000, liabilities of $430,000, and owne

> In late July 2020, Mona Ltd., a private company, paid $2 million to acquire all of the net assets of Lubello Corp., which then became a division of Mona. Lubello reported the following statement of financial position at the time of acquisition: It was

> Guiglano Inc. is a large, publicly held corporation. The following are six selected expenditures that were made by the company during the fiscal year ended April 30, 2020. The proper accounting treatment of these transactions must be determined in order

> On April 30, 2020, Oceanarium Corporation ordered a new passenger ship, which was delivered to the designated cruise port and available for use as of June 30, 2020. Overall, the cost of the ship was $97 million, with an estimated useful life of 12 years

> Linda Monkland established Monkland Ltd. in mid-2019 as the sole shareholder. The accounts on June 30, 2020, the company's year end, just prior to preparing the required adjusting entries, were as follows: All the capital assets were acquired and put in

> On January 1, 2018, Dayan Corporation, a small manufacturer of machine tools, acquired new industrial equipment for $1.1 million. The new equipment had a useful life of five years and the residual value was estimated to be $50,000. Dayan estimates that

> Comco Tool Corp. records depreciation annually at the end of the year. Its policy is to take a full year's depreciation on all assets that are used throughout the year and depreciation for half a year on all machines that are acquired or disposed of dur

> On June 15, 2017, a second-hand machine was purchased for $77,000. Before being put into service, the equipment was overhauled at a cost of $5,200, and additional costs of $400 for direct material and $800 for direct labour were paid in fine -tuning the

> Odyssey Ltd. purchased machinery on January 1, 2020, for $60,000. The machinery is estimated to have a residual value of $6,000 after a useful life of eight years. (a) Calculate the 2020 depreciation expense using the straight-line method. (b) Calculate

> Alladin Company purchased a large piece of equipment on October 1, 2020. The following information relating to the equipment was gathered at the end of October: It is expected that the equipment could be used for 12 years, after which the salvage value w

> Ducharme Corporation purchased electrical equipment at a cost of $12,400 on June 2, 2017. From 2017 through 2020, the equipment was depreciated on a straight-line basis, under the assumption that it would have a 10-year useful life and a $2,400 residual

> Sung Corporation, a manufacturer of steel products, began operations on October 1, 2019. Sung's accounting department has begun to prepare the capital asset and depreciation schedule that follows. You have been asked to assist in completing this schedule

> The following is a schedule of property dispositions for Shangari Corp.: The following additional information is available: Land On February 15, land that was being held mainly as an investment was expropriated by the city. On March 31, another parcel o