Access the financial statements of Loblaw Companies Limited for the year ended January 2, 2010 (2009 annual report). The statements are available on the company’s website or SEDAR (www.sedar.com).
Instructions
(a) During 2008, the company issued second preferred shares—Series A. Describe the terms of these shares and how the company measures and reports these shares. Explain why this presentation is required.
(b) How much were the shares originally issued for? What amount is showing on the statements with respect to these shares at the 2009 year end? Why is the amount different?
(c) How much was paid in dividends on these shares during 2009? How was the cost of these dividends reported?
(d) Review the company’s capital management note. How are these preferred shares treated?