Question: Refer to the 2009 year end financial statements and accompanying notes

Refer to the 2009 year-end financial statements and accompanying notes of Eastern Platinum Limited (Eastplats) at the end of this volume, and then answer the following questions about the company. (Note that Eastplats follows IFRS.)
(a) Review the notes and determine how Eastplats accounts for its leasing transactions. Is Eastplats the lessor or lessee and what types of leases does it have?
(b) Identify all accounts on the consolidated statements of financial position and the consolidated income statement, along with their dollar amounts, that relate to any lease agreements that the company is a party to. Explain briefly what each lease agreement covers.
(c) Identify the line account(s) on the Consolidated Statements of Cash Flows where the cash lease payments are reported. Explain your answer.
(d) Calculate Eastplats’s return on total assets and total debt-to-equity ratios for 2009.
(e) Assume the IASB develops a revised lease accounting standard using the contract-based approach. Would there be any impact to the financial statement of Eastplats? If so, what would the impact be?

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