Refer to the financial statements and accompanying notes for Corus Entertainment Inc. presented in Appendix A. Corus purchases mainly strategic investments as part of its strategy for continued growth. On the consolidated statements of financial position (another term for balance sheet), the company reports "Investments and intangibles" on August 31, 2014, of $47,630,000.
Instructions
(a) Locate Note 19, which details other expenses (income), in the notes to the financial statements and list Corus's strategic investments. Determine the total profit or loss from investment in associates. (Corus refers to this as "Equity loss of investees.")
(b) Locate Note 5 in the notes to the financial statements. What is the total investment amount in associates on August 31, 2014? List the companies that Corus has significant influence over.
(c) Refer to Note 3-Determination of fair value. Corus reports information on how it determines fair value and refers to the three levels of the fair value hierarchy. Describe the levels of the hierarchy. Using each level in the hierarchy, discuss how you would determine a fair value for an investment in common shares.