Instructions
Gain access to the 20 II financial statements of Potash Corporation of Saskatchewan from the
company's website (www.potashcorp.com) or www.sedar.com.
(a) Based on the information contained in these financial statements, determine each of the following for Potash:
1. Cash used in (for) investing activities during 2011 and 2010 (from the statement of cash
flows)
2. Cash used for purchases of long-term investments during 20 I I and 20 I 0
3. Total investment in unconsolidated affiliates (or invesm1ents and other assets) at December 31, 2011 and 2010
(b) What conclusions about the management of investments can be drawn from the data in part (a)?
(c) Briefly identify from the notes Potash's investments reported under the equity method.
Describe these investments, the amount of voting control, and the fair value of each investment.
How much cash was received from dividends and how much was reported as Potash's portion of
the investees net income? Where is this income reported?
(d) Describe each investment and the amount of voting control of the other types of investments in long-term investments. What method of accounting has the company used for these?
(e) Explain the impairment assessment that is discussed in the notes by Potash for 2011 and explain the event that triggered this impairment assessment discussion and what other factors Potash considered in its conclusion.