Access the annual financial statements of Andrew Peller Limited for the year ended March 31, 2015, on SEDAR (www.sedar.com) or the company's website (www.andrewpeller.com).
Instructions
Refer to these financial statements and the accompanying notes to answer the following questions.
(a) How significant are the inventories relative to total cur- rent assets? What categories of inventory does Andrew Peller Limited report?
(b) Identify all the accounting policies that are the basis for the inventory values reported on the March 31, 2015 balance sheet.
(c) Which category of inventory represents the highest percentage? Is this what you would expect?
(d) What was the amount recognized in expense related to inventory for the years ended March 31, 2015 and 2014? Were there any writedowns of inventory or reversals of writedowns for these two years?
(e) What was Andrew Peller's inventory turnover ratio for the year ended March 31, 2015? What is the average age of the inventory? Comment briefly.
(f) Compare the gross profit ratios for the two most recent years that are reported. Comment briefly on why there might be changes from year to year.
(g) If Andrew Peller Limited was a private enterprise that followed ASPE, how would the company have accounted for its vineyard and grape assets? What would be the likely impact on the balance sheet? On the income statement?
(h) In 2014, the IASB released amendments to IAS 16 Property, Plant, and Equipment, and to IAS 41 Biological Assets. The amendments relate to bearer plants such as grapevines. What do the amendments require, when are they effective, and what effect does Peller indicate the change will have on its financial statements?