Access the 2011 consolidated financial statements for ATCO Ltd. by going to the investor's relations section of

Question:

Access the 2011 consolidated financial statements for ATCO Ltd. by going to the investor's relations section of the company's website. Answer the same questions as in Web Problem 1. For each question, indicate where in the financial statements you found the answer, and/or provide a brief explanation.
(a) What method was used to account for business combinations?
(b) Describe the most significant business acquisition during the year. Was it a purchase of net assets or shares?
(c) How much cash was paid for all business acquisitions during the year?
(d) In the allocation of the acquisition cost for the most significant business acquisition, what amounts were allocated to (i) intangible assets and (ii) goodwill?
(e) What percentage of total assets at the end of the year is represented by (i) intangible assets and (ii) goodwill?
(f) Assume that the company had paid 10% more for its acquisitions of 100%-owned subsidiaries, and that the extra amount was paid in cash.
How would this have affected the (i) current ratio and (ii) debt-to-equity ratio at the date of acquisition?
(g) Assume that the market capitalization of the company's shares (i.e., num ber of shares outstanding times market value per share) was double the carrying amount of shareholders' equity on the date when the business acquisitions occurred, and that the company uses the new-entity method to account for business combinations. How would this have affected the (i) Debt-to-equity
Intangible Assets
An intangible asset is a resource controlled by an entity without physical substance. Unlike other assets, an intangible asset has no physical existence and you cannot touch it.Types of Intangible Assets and ExamplesSome examples are patented...
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...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Modern Advanced Accounting In Canada

ISBN: 9781259066481

7th Edition

Authors: Hilton Murray, Herauf Darrell

Question Posted: