Refer to the 2011 year-end financial statements and accompanying notes of Shoppers Drug Mart Corporation at the

Question:

Refer to the 2011 year-end financial statements and accompanying notes of Shoppers Drug Mart Corporation at the end of this volume or on the company's website and then answer the following questions about the company.
Instructions
(a) Review the notes and determine how Shoppers Drug Mart accounts for its leasing transactions. Is Shoppers the lessor or lessee? 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.
(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 Shoppers' return on total assets and total debt to equity ratios for 2011.
(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 Shoppers Drug Mart? If so, what would the impact be?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Consolidated Income Statement
When talking about the group financial statements the consolidated financial statements include Consolidated Income Statement that a parent must prepare among other sets of consolidated financial statements. Consolidated Income statement that is...
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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