Refer to the specimen financial statements at the end of the book, which show excerpts from the 2011 year-end financial statements and accompanying notes of Shoppers Drug Mart. The full financial statements are available on SEDAR. In the notes, the company refers to accounting standards that have been retrospectively applied, standards that have been prospectively applied, and standards that have been issued but are not yet effective.
Instructions
(a) Review Note 30 from the financial statements, and explain how the IFRS standards have been adopted and retrospectively applied. Indicate and explain the following:
1. On what date did the company adopt IFRS?
2. What were some of the elections to retrospective restatement that were applied?
3. What items required restatement and what was their impact (exclude tax impact) on the income statement for the year ended January 1, 2011, and the statement of financial position at January 3, 2010, and January 1, 2011? Consider putting the solution in table format.
(b) What disclosure did the company provide on standards that were issued, but were not effective?