Access the 2011 financial statements for Atco Ltd. by going to investor relations section of the company’s website. Answer the same questions as in Problem 1. For each question, indicate where in the financial statements you found the answer, and/or provide a brief explanation. (Some questions may not be applicable.)
In Problem 1
Access the 2011consolidated financial statements for Barrick Gold Corporation by going to investor relations section of the company's website. Answer the questions below. For each question, indicate where in the financial statements you found the answer, and/or provide a brief explanation.
(a) What currency is used in presenting the financial statements?
(b) What percentage of net income is represented by foreign exchange gains or losses?
(c) Identify the location(s) in the annual report where the company provides disclosures related to its management of foreign exchange risk.
(d) Indicate if and how the company describes the significance of foreign currency issues to the overall success/profitability of the company and sensitivity of its income to a change in foreign exchange rates.
(e) Describe the types of hedging instruments the company uses to hedge foreign exchange risk.
(f) Describe the manner in which the company discloses the fact that its hedges are effective in offsetting gains and losses on the underlying items being hedged.
(g) Does the company apply hedge accounting to accounting for its hedging instruments? If so, what portion of its hedging instruments are fair value hedges, and what portion are cash flow hedges?
(h) What was the amount of foreign exchange gains or losses for the year on cash flow hedges? Describe how these gains or losses are reported.