The financial statements of M&S are presented in Appendix E. The company’s complete annual report, including the notes to the fi nancial statements, is available online.

Instructions

Refer to M&S’s financial statements and the accompanying notes to answer the following questions.

a. Using the notes to the consolidated financial statements, determine M&S’s revenue recognition policies.

b. Give two examples of where historical cost information is reported in M&S’s financial statements and related notes. Give two examples of the use of fair value information reported in either the financial statements or related notes. What new accounting policies are discussed, if any?

c. What are M&S’s critical accounting adjustments and estimation uncertainties related to revenue recognition?